Wyoming and Indiana are the latest states to consider legalising iGaming as efforts to regulate online gambling gain momentum across the US.
Proposed legislation in both states highlights distinct approaches to interactive gaming, with provisions tailored to local needs and existing frameworks.
Wyoming House Bill 162
In Wyoming, House Bill 162, sponsored by several legislators, introduces measures to legalise and regulate interactive gaming under the oversight of the Wyoming Gaming Commission.
The bill defines “interactive gaming” as internet-based versions of games such as poker, blackjack, and slot games, accessible via computers, digital platforms, or mobile applications. It excludes lotteries, fantasy sports, and activities conducted exclusively on tribal lands.
Key provisions of HB 162 include:
– Licensing and Regulation: Interactive gaming operators and vendors must obtain permits from the Gaming Commission, with initial licensing fees of $100,000 and renewal fees of $50,000 for operators. Vendors face fees of $10,000 for initial licensing and $5,000 for renewals.
– Revenue Distribution: Operators are required to remit 16% of monthly interactive gaming revenue. The first $300,000 collected annually will fund county health programs to address problem gambling, with remaining funds allocated to counties (40%), schools (50%), and state programs (10%).
– Consumer Protections: Operators must implement geolocation systems to ensure participants are physically within Wyoming or permissible jurisdictions when wagering.
– Penalties and Enforcement: Criminal offences for unlicensed operations are included, alongside rules to address irregularities and ensure fair play.
Testing the waters
Previous efforts in Wyoming to legalise online gambling have focused primarily on sports betting, which became regulated in 2021.
Since its inception, sports betting has contributed $2.9m in tax revenue to the state.
Lat year, Wyoming took steps to explore the potential expansion of its gambling industry, including the possibility of legalising online casinos. This initiative marked a continuation of the state’s efforts to evaluate the economic and regulatory impacts of gaming.
In September, the Wyoming Gaming Commission and state legislature confirmed that Spectrum Gaming Group was conducting a comprehensive feasibility study on the state’s gambling industry.
The study aimed to assess the viability and potential benefits of expanding gambling options, including online casino gaming.
The results of the study, published in November, provided an optimistic outlook and served as a foundation for future legislative actions, including the new bill.
Indiana House Bill 1432
In Indiana, House Bill 1432 aims to broaden the state’s gaming landscape by allowing interactive gaming under the regulation of the Indiana Gaming Commission. Introduced by Representative Manning, the bill outlines a detailed framework for implementing online gambling.
Key features of HB 1432 include:
– Authorised operators: Licensed riverboat owners, racetrack casinos, and other gaming permit holders will be permitted to conduct interactive gaming.
– Taxation: Adjusted gross receipts from interactive gaming will be taxed between 22% and 30%, with funds allocated to support local government services, the horse racing industry, and problem gambling programmes.
– Game types: Interactive games may include poker, roulette, blackjack, and slots. The bill also allows for digital lottery games such as instant games and draw games.
– Problem gambling measures: The establishment of the Indiana Responsible Gaming and Problem Gambling Services Programme aims to address gambling addiction through funding from operator fees.
Indiana can’t find clear path
Indiana has considered online gambling legislation in the past, with prior efforts primarily targeting sports betting. The state legalised online sports wagering in 2019, which has since demonstrated significant revenue growth.
Significant efforts were made to advance online gambling legislation during the 2023 legislative session. However, a bill proposing the legalisation of online gambling and online lottery ultimately did not progress.
Representative Ethan Manning introduced HB 1536 that year, which aimed to legalise online table games and lotteries. Despite its potential, the bill never received a hearing. At the time, Manning indicated that Indiana needed more time to evaluate the advantages of expanding legalised online gambling.
Efforts to expand online gambling in Indiana faced significant setbacks again last year due to the fallout from a high-profile corruption case involving former state legislator Sean Eberhart.
Eberhart, who served in the Indiana House of Representatives from 2006 to 2022 and was a member of the Committee on Public Policy, played a key role in overseeing gambling legislation.
In 2023, he pleaded guilty to conspiracy to commit honest services fraud. The charges stemmed from his involvement with Spectacle Entertainment, an Indiana casino company, in exchange for promises of a future job.
As a result, in July 2023 US District Judge Matthew Brookman sentenced him to one year and one day in federal prison, as announced by the US Attorney’s Office for the Southern District of Indiana.
The case had ripple effects on gambling legislation in the state. Senate leadership openly stated that no progress would be made on legalising online casinos in the wake of Eberhart’s guilty plea.
Consequently, efforts to push forward legislation stalled.