Wyoming Bill Seeks to Criminalize Online Casinos and Sweepstakes Operations

Wyoming lawmakers have moved a step closer to tightening restrictions on online gambling after a legislative committee backed draft legislation that would bring online casinos and sweepstakes platforms under the state’s professional gambling laws.

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The proposal would expand existing rules to target not only operators but also companies that help run or support them.

The bill comes as gambling activity continues to grow across Wyoming. According to Nicholas Larramendy, executive director of the Wyoming Gaming Commission, around $ 2.7 billion was wagered through legal gambling channels last year, with 2026 already on track to exceed $3 billion.

That growth has drawn increased attention from lawmakers, who have been examining whether existing legislation covers newer forms of online gambling.

Lawmakers seek to end regulatory uncertainty around sweepstakes gaming

Like many other states in the US, a major focus of the proposal is the treatment of online sweepstakes games. 

During discussions with lawmakers, Larramendy described ongoing confusion between gambling regulators and consumer protection authorities when complaints involving sweepstakes platforms are received.

“When consumer protection gets complaints about online sweepstakes, they look at it as gambling,” Larramendy explained. “They give it to us. We look at it. Then we get the argument that this is under consumer protection.”

He went on to say those disagreements have resulted in a “constant cycle” between agencies. “So this bill definitely makes it very clear that this is illegal gambling,” Larramendy concluded.

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The draft legislation creates a formal definition for online casino and sweepstakes games. Under the proposal, the definition would cover internet-based games, contests or promotions that involve risking property or something of value for the chance to obtain property, while also enabling or simulating gambling or wagering activity.

The measure also states that nothing in Wyoming’s promotional prize provisions should be interpreted as authorising online casinos or sweepstakes games.

Proposal extends beyond operators to suppliers and service providers

The bill goes further than simply targeting gambling platforms. It would also apply to businesses that knowingly provide services used to operate, offer or promote online casino or sweepstakes products.

The draft specifically mentions activities such as geolocation services, payment processing, server hosting, platform services, gaming content, data services, advertising and promotional support. If enacted, those activities would fall within the expanded definition of professional gambling when linked to online casino or sweepstakes operations.

Because professional gambling already carries felony penalties in Wyoming, the proposed changes would expose covered operators and service providers to existing sanctions of up to three years’ imprisonment, a fine of up to $3,000, or both.

The draft also introduces a new definition of “representative of value” covering virtual currencies, promotional credits, sweepstakes entries, and similar units that can be redeemed or used for the chance to obtain property.

If approved in its current form, the legislation would take effect on 1 July 2027.

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