Due to the expansion of gambling in Wyoming, legislators felt the time was right to authorize the Wyoming Gaming Commission to commission a study on gaming in the Cowboy State.
Gaming Explosion
Horse racing used to be the only game in town for Wyoming bettors. However, then the landscape began to rapidly change with the advent of skill-based amusement and charitable games. That was followed by online sports betting being passed by Governor Mark Gordon in April 2021 before it officially launched on September 1st of that year.
Suddenly, gambling was omnipresent in a state known more for national parks and sweeping landscapes than anything else. And because of that, the Wyoming Pari-Mutuel Commission was renamed the Wyoming Gaming Commission (WGC) giving it governance over the burgeoning gaming industry.
However, the legislature felt that something else was needed. A comprehensive study of the state’s gaming industry, exposing both its warts and beauty marks. This is why the legislature has approved a gaming study in conjunction with the Legislature’s Joint Appropriations Committee. The flourishing gambling industry has resulted in several new revenue streams for the state bringing in tens of millions of dollars.
Cards on the Table
However, allowing a full slate of gambling options to the masses comes with consequences and the legislature wants to know what they are and how severe they may be, which will allow lawmakers to navigate a course to mitigate whatever damages could be occurring.
The comprehensive study that has been authorized will focus on five key issues:
- All pari-mutuel wagering activities, skill-based amusement games and online sports wagering.
- The number and growth of betting locations and activity.
- The WGC’s oversight capacity.
- Grounds for denying applications for a license or permit.
- Processes and procedures to address noncompliance with gaming laws and regulations.
“Now that the agency has grown so much … we really need to get a comprehensive study,” said WGC Deputy Director Nick Larramendy. “Part of that study helps us develop a strategic plan moving forward to ensure the citizens of Wyoming are protected.”
Expansion of Live Horse Racing
Horse racing throughout the country is slowly making a comeback after years of slumping due to increased gambling options and an audience that is aging rapidly. Some of that resurgence has to do with the slot-style historical horse racing machines (HHR) being placed in horse tracks throughout the nation.
HHRs have an identical look to slot machines but they are technically a game of skill due to the outcome being based on races that have previously run. Players can choose which horses they believe will win before pulling the lever but the vast majority hit the spin button exactly as they would with a regular slot machine.
It is nothing more than a legal loophole that allows horse tracks to have slot machines without them being called slot machines, as that is normally the exclusive domain of casinos and would constitute a violation of the law.
High Stakes
Needless to say, casinos are not thrilled with HHRs and their legality varies from state to state.
Still, they are the lifeblood of horse tracks in Wyoming that no longer rely on the dwindling handle on live races to keep their operations going. In fact, the revenue generated by HHRs funds live horse racing and has led to its expansion.
“That racetrack doesn’t make money. There’s not enough volume of wagers at that live event to fund itself,” Larramendy said. “Essentially, they would go bankrupt — and actually, they were going bankrupt.”
“Quite frankly, if you didn’t have HHR, you wouldn’t have us,” said Nick Hughes, owner of Wyoming Horse Racing LLC. “HHR needs to be managed responsibly in order to keep live horse racing.”
