Sweepstakes Casinos Under Discussion in Wyoming Legislature

2026 has been a difficult year for sweepstakes casinos. Depending on future discussions, Wyoming could make another strike against the industry in 2027.

On Oct. 5, the Wyoming Select Committee on Gaming held meetings in Rock Springs, discussing whether to ban sweepstakes casinos or begin regulating them. The Wyoming legislature is currently out of session, which means no bills can be formally discussed or voted on. However, the senators can hold hearings, which led to this discussion.

Specifically, Wyoming senators wanted to discuss the two forms of unregulated betting in the Equality State, prediction markets and sweepstakes casinos. Wyoming Gaming Commission executive director Nicholas Larramendy spoke to the committee, emphasizing that one of his key concerns is the lack of mechanisms to prevent underage gambling.

“There’s no know-your-customer stuff,” Larramendy told the committee. “They will accept accounts from any aged person.”

In Wyoming, that’s a little different from most states, given that the state allows legal sports betting at 18. Per the original legislation that brought sports betting to Wyoming, wagering is legal as long as the person is over 18 and bets with a qualified gaming entity, which must operate in at least three states to comply with Wyoming law.

Currently, that covers both sweepstakes casinos and prediction markets. However, as with most states, Wyoming would like to establish regulations and collect taxes. Wyoming is one of the most tax-friendly states for legal betting in the nation, limiting taxes to 10% on operators. Additionally, the state has no income tax, so gambling winnings are not taxed.

What Direction Will Wyoming Take on Sweepstakes Casinos?

There are competing bills likely to be introduced when the Wyoming legislature reconvenes. One would officially prohibit sweepstakes casinos in the state, while the other would work to bring them under Larramendy’s jurisdiction.

During the hearing, Larramendy stressed that his office could go after sweepstakes casinos as they are, but currently doesn’t have the ability to do so. Either bill could solve his issue by increasing funding for the Wyoming Gaming Commission, which would go to education and enforcement.

“It’s not a statutory restriction that prevents us from that,” Larramendy said. “It’s a budgetary restriction. I can only spend what I have in my spending authority. That’s not currently something that I have in my spending authority.”

In the previous session, Wyoming made moves to limit gambling’s visibility. Notably, the state chose to place some restrictions on skill-based games, which have had issues in other states.

Where Do the Legislators Fall On the Issue?

The senators seemed to think that the bills have a long way to go before becoming law. They appeared receptive to Larramendy’s remarks, but didn’t seem to see a need to rush anything.

“While I think that there has been some good work done on this bill and there is a good start, I don't think it's anywhere near ready to to go,” said Sen. Joe Webb (R-Lyman), who confirmed he would currently be a no vote on any bill. “I think there's a lot of unanswered questions. I don't even know that we know where we want to go with this.”

Committee chairman John Kolb (R-Rock Springs) echoed Webb’s thoughts and seemed inclined to press pause.

“Good legislation frankly takes years,” Kolb said. “We have a lot of changes coming up in the next legislative session in both bodies. We don’t know the temperament of that group yet.”

What Is Likely to Happen?

Most likely, Wyoming will discuss the issue in 2027, but probably won’t take action. That would leave sweepstakes casinos operating in their current legal gray area, as they do in most states.

While there is an election happening next month, the only major change will likely come at the governor’s mansion. Wyoming is one of the most Republican states in the nation, with Democrats controlling just two seats in the state senate. However, governor Mark Gordon is term-limited. He’ll be replaced by state senator Eric Barlow (R-Gillette), who is seen as slightly more friendly toward legal gambling.