Wyoming’s Select Committee on Gaming failed on Thursday to advance a draft bill that would have added online casino games and sweepstakes platforms to the state’s definition of professional gambling, a change that would have effectively banned the sweepstakes casino model. A separate draft bill dealing with raffle regulations also did not move.
The committee ended the session with more questions than answers and deferred any further action.
The blockage reflected two unresolved concerns. Some lawmakers were unsure whether existing state statutes already covered the products, and others doubted the Gaming Commission had enough enforcement tools to act against offshore operators.
Virtual Gaming Worlds appeared before the committee to oppose the prohibition. Its lawyers said the proposed definitions were too broad and could catch unrelated gamification features, including promotional wheels that offer retail discounts and entry sweepstakes tied to product purchases.
The argument is familiar from other states that have moved to restrict the model, including California, Indiana and Tennessee. It also comes against a Wyoming backdrop in which gambling is prohibited unless expressly authorized by statute, and the state has never legalized online casino gaming.
A May 2024 legislative memo said Wyoming’s gambling laws are spread across Titles 6, 9 and 11 of the Wyoming Statutes. It listed exceptions such as charitable raffles, online sports wagering and fantasy sports contests, and said the law does not define 'bona fide social relationship’, leaving uncertainty over how the term should be applied.
That memo also traced how Wyoming handled earlier gambling products. Skill-based amusement games began appearing around 2017 or 2018, were deemed illegal gambling devices in a 2018 attorney general opinion, then were grandfathered in 2020 and later legalized going forward at licensed liquor establishments, truck stops or smoke shops. The Wyoming Gaming Commission has since promulgated rules and approved about 900 games.
Wyoming authorized online sports wagering in 2021, and the memo said that more proactive approach gave the industry certainty and produced few legal problems. The current sweepstakes debate has been messier, because the products have been operating in a legally uncertain space.
Domestic sweepstakes platforms operate under promotional sweepstakes rules and retain some consumer-facing accountability, while offshore operators do not. That is why the reporting said a ban on domestic sweepstakes casinos would not solve the offshore problem and could steer players toward products with fewer protections. Executive director Nick Laramendy also raised concerns about offshore platforms using Wyoming LLCs while operating from overseas, and the reporting said users can lose thousands of dollars and then find their accounts closed with no practical recourse.
The committee is scheduled to meet again in Evanston on September 29.
