Wyoming’s Select Committee on Gaming has unanimously voted to advance draft legislation that would classify operating an online sweepstakes gaming platform as a felony. The move aims to resolve a jurisdictional gray area that has left consumer complaints unresolved. Attorneys for Bally’s Corporation and VGW opposed the measure, calling it overbroad. The bill must still pass the full Legislature, with a target of the 2027 legislative session.
Wyoming’s Select Committee on Gaming has unanimously voted to advance draft legislation that would ban online sweepstakes games in the state, according to Gaming America. Under the proposal, operating an online sweepstakes gaming platform would become a felony.
The committee’s decision came after lawmakers spent much of 2026 debating whether to regulate or prohibit the sweepstakes casino industry. Earlier in the week, two approaches were on the table — an outright ban or a regulatory framework — before the committee settled on prohibition, Gaming America reported.
Jurisdictional Confusion Drives the Push
Online casinos are already prohibited in Wyoming, while online sports betting and fantasy sports are legal. Sweepstakes gaming operates in a gray area in the state, as it does in much of the country.
Wyoming Gaming Commission Executive Director Nicholas Larramendy told lawmakers that complaints about sweepstakes platforms bounce between his agency and the state’s Consumer Protection and Antitrust Unit without resolution.
“They give it to us. We look at it. Then we get the argument that this is under consumer protection,” Larramendy said of complaints initially referred to the Gaming Commission. He described the result as a “constant cycle.”
Larramendy said the proposed law would eliminate that ambiguity. “So this bill definitely makes it very clear that this is illegal gambling,” he told lawmakers.
Earlier in 2026, the Wyoming Gaming Commission issued a warning to residents about unlicensed online gambling operators. The commission specifically noted that sweepstakes and social casino platforms offering real-money payouts could fall into that category.
Industry Representatives Oppose the Draft
Former Wyoming state Sen. Affie Ellis, now an attorney representing Bally’s Corporation, told lawmakers that a sweepstakes casino and an online casino could feature what appears to be the same slot machine, blackjack table or jackpot animation. She argued the difference lies in how the products operate.
VGW attorney Bill Gantz also pushed back against the draft, contending its language reaches far beyond casino-style sweepstakes sites.
“This is overbroad and it does conflict with the idea that a sweepstakes in connection with a purchase of a good or service is currently valid in Wyoming and should remain valid in Wyoming,” Gantz said.
Sweepstakes operators and industry groups have maintained that their games are promotional products rather than unlicensed gambling. New Jersey signed legislation prohibiting sweepstakes casino operations into law last year, according to Gaming America.
Wyoming’s Gambling Market Continues to Expand
The debate unfolds as Wyoming’s legal gambling market grows. Players wagered approximately $2.7 billion across legal forms of gambling in the state last year, according to figures Larramendy presented to lawmakers. He said Wyoming could surpass $3 billion in wagers this year, putting the state on course for another record.
The state created the Select Committee on Gaming to take a broader look at regulation as betting continues to expand. Beyond sweepstakes casinos, the committee has examined questions around local authority, horse racing, responsible gambling funding and what constitutes illegal gambling.
Earlier in 2026, Wyoming lawmakers sought to give local governments more authority over gambling operations. Sweepstakes and prediction markets were singled out in the Legislature’s interim plans as areas needing more clarity.
Path Forward Remains Long
The committee vote does not make sweepstakes casinos illegal in Wyoming. Lawmakers agreed to sponsor the draft and move the proposal forward, but the bill must still pass the full Legislature and be signed into law before any legal status changes. The proposal is headed toward the state’s 2027 legislative session.
A unanimous committee vote carries weight as a signal of legislative intent. However, the bill faces additional procedural steps before it could become law.
