A recent report commissioned by the Wyoming Gaming Commission and conducted by Spectrum Gaming Group suggests that legalizing iGaming could bring significant economic benefits to Wyoming while posing minimal risk to the state’s existing casino market, Sports Betting Dime reports.
The study highlights that iGaming, which includes online casino-style games, could generate between $93.4 million and $138.4 million annually in gross gaming revenue (GGR) for Wyoming if implemented. With the state’s current 20% tax rate on gross gaming revenue, this could translate into annual tax revenues of $18.6 million to $27.6 million.
For comparison, Wyoming already taxes skill-based amusement games and historical horse racing at a similar rate. In other states where iGaming is legal, tax rates range from 15% in West Virginia to 54% in Pennsylvania.
This potential new revenue stream comes as Wyoming seeks to diversify its gaming offerings, which currently include legalized online sports betting and three tribal casinos operating under individual compacts.
A key concern with iGaming legalization is the potential for it to cannibalize revenues from brick-and-mortar casinos. However, the study found that states with established casino markets have seen minimal erosion in casino revenues after implementing iGaming.
West Virginia, for instance, offers a variety of gaming options, including casinos, video lottery terminals (VLTs), iGaming, and sports betting. The Spectrum report noted that iGaming revenues in West Virginia have been “accretive rather than cannibalistic” to its casino and distributed gaming markets.
Wyoming’s three Native American casinos, which are independently regulated, would likely remain competitive under an iGaming expansion.
In addition to advocating for iGaming legalization, the Spectrum Gaming Group report recommended raising the legal gambling age for historical horse racing and online sports betting to 21, aligning it with the age requirement for skill-based amusement games.
Wyoming first legalized online sports betting in April 2021, joining a growing number of states exploring gaming innovations. The addition of iGaming would make Wyoming one of only eight states to offer the service, positioning it as a forward-thinking player in the gaming industry.
The Wyoming Gaming Commission will likely use this report as a basis for future discussions on the feasibility of iGaming legislation. As the state evaluates the findings, the potential for increased tax revenues and a diversified gaming market will be weighed against regulatory considerations and public sentiment.
