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25LSO-0292
2025
STATE OF WYOMING
25LSO-0292
Introduced
2.0
HOUSE BILL NO. HB0162
Interactive gaming.
Sponsored by: Representative(s) Davis, Brown, L, Larson, JT and Tarver and Senator(s) Barlow, Pappas and Schuler
A BILL
for
AN ACT relating to gaming; authorizing interactive gaming; providing for regulation by the Wyoming gaming commission; imposing fees; providing for the collection and distribution of revenues from interactive gaming; providing for the distribution of interactive gaming revenues; requiring rulemaking; creating criminal offenses and providing criminal penalties; and providing for effective dates.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1.
W.S. 9
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24
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201 through 9
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24
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207 are created to read:
ARTICLE 2
INTERACTIVE GAMING
9
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24
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201.
Definitions.
(a)
As used in this article:
(i)
"Commission" means the Wyoming gaming commission;
(ii)
"Interactive game" means an internet based version or variation of poker, blackjack or any other card, slot or gambling game typically offered in a casino and approved by the commission, in which:
(A)
A person wagers money or something of monetary value for the opportunity to win money or a thing of monetary value;
(B)
The outcome of the game may be determined by a random number generator, or a skill element may be essential to the game's outcome, depending on the type of game utilized; and
(C)
The game is accessed by the player using a computer, digital platform or mobile application on a mobile device that is connected to the internet.
(iii)
"Interactive gaming" means engaging in interactive games conducted by an interactive gaming operator over the internet by use of a computer, digital platform or mobile application on a mobile device, that uses communications technology to accept wagers. Interactive gaming shall not include any of the following gaming activities:
(A)
Activities, other than interactive gaming, that are exempted from criminal penalties under W.S. 6
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7
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101 through 6
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7
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104;
(B)
Activities outside of this article authorized or regulated by the commission;
(C)
Lotteries authorized by law;
(D)
Fantasy sports contests;
(E)
Interactive games offered exclusively on Indian lands by an Indian tribe operating in accordance with a Tribal
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State gaming compact and authorized to conduct class III gaming pursuant to federal law. For purposes of this article, an interactive game is conducted exclusively on Indian lands only if the person participating in interactive gaming is physically present on Indian lands when the interactive game is initiated and the game is offered by an Indian tribe operating on the same Indian lands as an intratribal transaction under 31 U.S.C. § 5362(10)(c).
(iv)
"Interactive gaming operator" means any qualified gaming entity permitted by the commission to accept interactive gaming wagers;
(v)
"Interactive gaming revenue" means the total amount of all wagers placed by persons with an interactive gaming operator using cash or cash equivalents, excluding free wagers and promotional play, minus all payments to patrons and minus any applicable federal excise taxes. Payments to patrons include all payments of cash, cash equivalents, merchandise and any other thing of monetary value;
(vi)
"Interactive gaming vendor" means a vendor that provides services to an interactive gaming operator which directly affect wagering, play or results of interactive gaming including geolocation services, know your customer services, payment processors and game providers;
(vii)
"Live game simulcast" means an interactive live feed of an interactive game that is conducted at a live interactive game studio and in which participants have the ability to wager in real time;
(viii)
"Live interactive game studio" means a physical location that utilizes live video and audio streaming technology to provide an interactive gaming operator with a live game simulcast;
(ix)
"Patron" means a person who places an interactive gaming wager;
(x)
"Permissible jurisdiction" means a jurisdiction other than Wyoming where wagers on interactive gaming may be accepted pursuant to an interactive gaming reciprocal agreement;
(xi)
"Qualified gaming entity" means a gaming entity that offers interactive gaming through computers, digital platforms or mobile applications on a mobile device in not less than three (3) states in the United States pursuant to a state regulatory structure.
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202.
Interactive gaming regulation; rulemaking.
(a)
The commission shall regulate interactive gaming and interactive gaming operators and vendors.
(b)
The commission shall promulgate rules to implement this article. The rules the commission promulgates shall establish standards and procedures for interactive gaming and associated interactive gaming platforms. The rules shall include:
(i)
Governance of the conduct of interactive gaming and the system of wagering associated with interactive gaming, including all of the following:
(A)
Terms and conditions for interactive gaming that are compliant with all applicable federal laws;
(B)
Identification of the types of interactive games upon which wagers may be accepted;
(C)
The manner in which interactive gaming wagers are received and payoffs are remitted;
(D)
Procedures for managing and resolving suspected cheating, irregularities and complaints;
(E)
A requirement that a patron shall be physically present in Wyoming when making a wager unless the patron is physically present in a permissible jurisdiction;
(F)
A requirement for each interactive gaming operator to use a geolocation system to ensure that a patron making an interactive gaming wager is physically present in the state when making the wager unless the patron is physically present in a permissible jurisdiction;
(G)
Internal controls for all aspects of interactive gaming, including procedures for system integrity, system security, operations and accounting;
(H)
Operational controls for interactive gaming accounts;
(J)
Procedures to ensure that interactive gaming operators do not offer prohibited interactive games;
(K)
Requirements for the offering of live game simulcasting, which shall be permitted to be conducted from live interactive game studio premises in any location and shall not be located in Wyoming.
(ii)
Methods for calculating interactive gaming revenue and standards for the counting and recording of money and things of monetary value received in the conduct of interactive gaming, including requirements for internal controls, financial records and audits;
(iii)
Reasonable minimum qualifications for interactive gaming operators and vendors;
(iv)
Any other matters necessary for overseeing interactive gaming and interactive gaming operators and vendors.
(c)
In promulgating rules pursuant to this section, the commission shall examine the regulations implemented in Wyoming for online sports wagering and regulations promulgated in other states where interactive gaming is conducted and shall, as far as practicable, adopt a similar regulatory framework to maximize revenue generated to the state.
(d)
Interactive gaming shall not be conducted from any physical location designed for a patron to physically visit to place a wager. Interactive gaming shall be deemed to take place at the location of the patron participating in an interactive game and not the location of the server of an interactive gaming permittee or any other location.
(e)
The commission shall develop a compliance program that includes establishing procedures to review interactive gaming and related activities occurring in the state to ensure compliance with and enforcement of this article. The program shall include review and evaluation of the conduct of:
(i)
Interactive gaming operators, interactive gaming vendors, qualified gaming entities, patrons and any other person permitted or authorized to engage in activities under this article; and
(ii)
Persons operating without a valid permit under this article, engaging in activities not authorized or regulated under this article or pursuing or engaging in activities otherwise in violation of this article.
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203.
Permits; fees; application.
(a)
An interactive gaming operator shall possess a permit issued by the commission to accept interactive gaming wagers. No operator shall accept interactive gaming wagers without holding a valid permit issued by the commission.
(b)
A qualified gaming entity applying for an interactive gaming operator permit shall do so on an application furnished by the commission. The commission shall offer an abbreviated application for a qualified gaming entity that holds an online sports wagering operator permit in Wyoming pursuant to W.S. 9
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24
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103, and the commission may consider an online sports wagering operator permitholder fully qualified to hold an interactive gaming operator permit under this section without additional investigation. The fee for both an initial application and renewal application shall be two thousand five hundred dollars ($2,500.00). The application shall require an applicant, at a minimum, to provide all information required by W.S. 9
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24
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103(b) and any additional information required by commission rules.
(c)
The commission shall charge a permit fee of one hundred thousand dollars ($100,000.00) for an initial interactive gaming operator permit. An initial permit and any renewal permit shall each be valid for five (5) years. The commission shall charge a fee of fifty thousand dollars ($50,000.00) for renewal of an interactive gaming operator permit.
(d)
An interactive gaming vendor shall possess a permit issued by the commission to conduct business in the state. No person shall provide vendor services to an interactive gaming operator without holding a valid permit issued by the commission.
(e)
The commission shall charge a fee of ten thousand dollars ($10,000.00) for an initial interactive gaming vendor permit. An initial permit and any renewal permit shall each be valid for five (5) years. The commission shall charge a fee of five thousand dollars ($5,000.00) for renewal of an interactive gaming vendor permit.
(f)
Interactive gaming operator and interactive gaming vendor permit fees charged pursuant to subsections (c) and (e) of this section shall be deposited in the commission gaming account. Subject to legislative appropriation, amounts within the account may be used by the commission for all expenses incurred in administering this article. On a quarterly basis, the commission shall transfer amounts within the account in excess of five hundred thousand dollars ($500,000.00) to the state treasurer for credit to the general fund.
(g)
The following persons are considered to be interactive gaming operator permit applicants or permit holders:
(i)
Each holding company, parent company or subsidiary company of the applicant or permit holder;
(ii)
Each person, except for a bank or other licensed lending institution that holds a mortgage or other lien acquired in the ordinary course of business, who owns fifteen percent (15%) or more of an applicant or permit holder and has the ability to:
(A)
Control the activities of the applicant or permit holder; or
(B)
Elect a majority of the board of the applicant or permit holder.
(iii)
Any person the commission otherwise determines has the ability to control the noncorporate applicant or permit holder;
(iv)
Key personnel of an applicant or permit holder, including any executive, employee or agent having the power to exercise ultimate decision making authority over the applicant's or permit holder's interactive gaming operations in this state.
(h)
The commission shall, not more than ninety (90) days after the date of receipt of an application for a permit or renewal of a permit, either:
(i)
Issue the permit; or
(ii)
Deny the application based on the grounds that the applicant failed to qualify as provided by subsection (j) of this section.
(j)
The commission shall deny an application under this section to anyone, including persons listed under subsection (g) of this section, upon finding any of the following:
(i)
The applicant or permit holder has been convicted of, forfeited bail on or pleaded guilty or nolo contendere to:
(A)
A crime involving theft, dishonesty or fraud;
(B)
The crime of bribery or unlawfully influencing a public official;
(C)
A felony crime involving physical harm to a person; or
(D)
Any other crime identified by rule of the commission that negatively impacts the applicant's credibility or the security, integrity or fairness of interactive gaming.
(ii)
The applicant intentionally tampered with submitted documentation or concealed, failed to disclose or otherwise attempted to mislead the commission with respect to any material fact contained in the application or contained in any other information required of or submitted by an applicant to the commission;
(iii)
The applicant or permit holder failed or refused to cooperate in the investigation of a crime related to gambling, corruption of a public official or any organized criminal activity;
(iv)
The applicant or permit holder intentionally failed to disclose the existence or identity of other persons who have control of the applicant or permit holder as required by this section;
(v)
The applicant or permit holder does not demonstrate financial responsibility sufficient to adequately meet the requirements of this article, as specified by rule of the commission; or
(vi)
The applicant or permit holder has not met the requirements of this section, any other provision of this article or commission rules.
(k)
Given a sufficient number of qualified applicants, at any one (1) time the commission shall issue not less than five (5) interactive gaming operator permits to applicants that satisfy the requirements of this article. If an insufficient number of applicants apply for an interactive gaming operator permit, this provision shall not be interpreted to direct the commission to issue a permit to an unqualified applicant.
(m)
Subject to subsection (k) of this section and the requirements of this article, the commission may give preference to an interactive gaming vendor that is currently operating in good standing in a similar role in at least three (3) states in the United States under a state regulatory structure and that has paid all required fees under subsection (e) of this section when making interactive gaming operator permit application determinations.
(n)
Permit holders under this article shall have an ongoing obligation to disclose in writing any material change in the information provided in the application to the commission, including:
(i)
Changes to names and contact information;
(ii)
Arrests, convictions, guilty or nolo contendere pleas, disciplinary actions or permit denials in Wyoming or any other jurisdiction;
(iii)
Any civil action brought against the permit holder related to gaming; and
(iv)
Any other information specified by rule of the commission.
(o)
If the commission denies an application or intends to revoke or suspend a permit issued under this article, it shall notify the applicant or permittee in writing, stating the grounds for denial, revocation or suspension and inform the person of a right to submit, within thirty (30) days, any additional documentation relating to the grounds for denial, revocation or suspension. Upon receiving any additional documentation, the commission shall reconsider its decision and inform the applicant of its decision within not more than twenty (20) days of the submission of information for reconsideration. If the commission finds that public safety or welfare requires emergency action, and incorporates a finding to that effect in its order, summary suspension of a permit may be ordered pending proceedings for revocation or other action. A denial of an application or a revocation or suspension of a permit under this article shall be subject to the contested case procedures of the Wyoming Administrative Procedure Act.
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204.
Distribution of revenue.
(a)
Not later than the fifteenth day of each month, in accordance with commission rules, an interactive gaming operator shall remit sixteen percent (16%) of its interactive gaming revenue from the prior month to the commission. The first three hundred thousand dollars ($300,000.00) of interactive gaming revenue collected under this section shall be continuously appropriated to the department of health to be distributed to the counties for the purpose of funding county health programs to prevent and treat problematic gaming behavior. Of the remaining revenue, the commission shall remit these monies to the state treasurer for distribution as follows:
(i)
Forty percent (40%) to the counties whose shares shall be based upon population;
(ii)
Fifty percent (50%) to the school foundation program account;
(iii)
Ten percent (10%) to the commission gaming account, a portion of which shall cover administrative costs and expenses.
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205.
Age to engage in interactive gaming.
No person under the age of twenty
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one (21) years shall engage in interactive gaming.
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206.
Reciprocal agreements.
(a)
The state may enter into reciprocal agreements with permissible jurisdictions for the conduct of interactive gaming, provided the agreements are not inconsistent with federal law and the law of the jurisdiction in which the person placing a wager is located.
(b)
An interactive gaming operator in this state may accept interactive gaming wagers from persons physically located in a permissible jurisdiction pursuant to a reciprocal agreement.
(c)
A reciprocal agreement with a permissible jurisdiction may allow a person physically located in this state to place a wager on an interactive game offered pursuant to a regulatory structure in the permissible jurisdiction.
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207.
Penalties; compliance.
(a)
Any person who knowingly accepts an interactive gaming wager or otherwise operates a business of interactive gaming and does not possess a valid permit issued by the commission under this article shall be subject to the following, in addition to any penalty imposed under W.S. 6
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7
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102:
(i)
For a first offense, a civil penalty of fifty thousand dollars ($50,000.00);
(ii)
For a second or subsequent offense, a civil penalty of one hundred thousand dollars ($100,000.00).
(b)
Any person that allows a person under the age of twenty
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one (21) years to engage in interactive gaming or who does not possess a valid permit issued by the commission under this article and that provides or makes available computers or devices to enable members of the public to participate in interactive gaming in a specific place, or that establishes or maintains a facility for the conduct of interactive gaming by members of the public, shall be subject to the following, in addition to any penalty imposed under W.S. 6
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7
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102:
(i)
For a first offense, a civil penalty of twenty
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five thousand dollars ($25,000.00);
(ii)
For a second or subsequent offense, a civil penalty of fifty thousand dollars ($50,000.00).
(c)
If a series of similar events result in a violation under this article, those events that occur within the same month shall be treated as one (1) offense and not separate and distinct offenses.
Section 2.
W.S. 6
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7
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101(a)(iii) by creating a new subparagraph (P) and 11
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25
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104(o) by creating a new paragraph (iii) are amended to read:
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101.
Definitions.
(a)
As used in this article:
(iii)
"Gambling" means risking any property for gain contingent in whole or in part upon lot, chance, the operation of a gambling device or the happening or outcome of an event, including a sporting event, over which the person taking a risk has no control, but does not include any of the following:
(P)
Interactive gaming regulated under W.S. 9
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201 through 9
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207.
11
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25
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104.
Gaming commission; officers; director; meetings; quorum; records; licenses generally; effect of financial interest in events.
(o)
In addition to all other duties, the commission, in the reasonable exercise of its discretion, shall:
(iii)
Regulate online interactive gaming and interactive gaming operators and vendors under W.S. 9
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201 through 9
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207.
Section 3
.
Not later than December 31, 2025 the gaming commission shall promulgate rules required by this act.
Section 4.
(a)
Except as provided in subsection (b) of this section, this act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
(b)
Sections 1 and 2 of this act are effective January 1, 2026.
(END)
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HB0162