Wyoming Panel Backs Felony Penalty for Online Sweepstakes

Wyoming’s Select Committee on Gaming unanimously backed draft legislation to ban online sweepstakes games, classifying their operation as a felony. However, the proposal does not yet alter current laws. The measure aims to clarify disputed regulatory ground and warn operators that the state could treat these games as illegal gambling.

The committee’s proposal centers on online sweepstakes games where prizes are determined by chance, an area of law that remains unclear. While online casinos are banned, online sports betting and fantasy sports are permitted; sweepstakes games fall into a less-defined category under existing regulations. This ambiguity has led to a jurisdictional loop: complaints may be viewed as gambling by the Consumer Protection and Antitrust Unit and referred to the Gaming Commission, or classified under consumer-protection law.

Enacting the proposed ban would clarify Wyoming's stance and expose operators to potential felony charges. The committee's move aligns with broader state-level debates over the classification of online casino-style products within existing rules. The committee also proposed updating fingerprinting requirements for certain regulated individuals, a matter separate from the legal status of sweepstakes games.

Industry attorney Bill Gantz from sweepstakes gaming company VGW objected to the proposed scope, arguing it might reach too broadly and conflict with Wyoming's current treatment of sweepstakes tied to purchases. Federal law requires such sweepstakes to offer alternative entry methods for those who do not make a purchase. The visual similarity between sweepstakes games and online casinos can blur this distinction.

Wyoming lawmakers are contemplating the proposal amid increasing gambling activity, with legalized gambling generating $2.7 billion in the state last year and projected to surpass $3 billion in 2026. The Select Committee on Gaming was established in 2025 to address gaming issues, and the sweepstakes proposal adds a specific enforcement question to their work.