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Wyoming Pari-Mutuel Commission

Gambling is booming under the radar, hurting players, state coffers

in News/Business
gambling
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By Ike Fredregill, Cowboy State Daily

Traditionally, Wyoming takes a conservative stance against the gambling industry, but technological innovations and legal gray areas are moving the state closer to its Wild West roots, a state senator said.

“We really don’t know what’s there, and it varies county to county and town to town,” said Sen. Ogden Driskill, R-Devils Tower. “You may have a poker game in one town, and the next town over, it isn’t allowed.”

The overview of gambling in Wyoming is further muddied by “skill games,” which are becoming increasingly popular barroom additions across the state.

“We had so-called skill games or gray games come in on what they saw as a crack in the law regarding skill games,” Driskill said. “At this point, there’s probably between 500 to 1,000 of these machines out there that at some point in the past would’ve been deemed illegal.”

A member of the Legislature’s Travel, Recreation, Wildlife and Cultural Resources Committee, Driskill is drafting a bill that would transform the state’s Pari-Mutuel Commission, which currently oversees horse racing and historic horse race gambling ventures, into the Wyoming Gaming Commission, which would oversee gambling on a broader spectrum.

“The attempt at the commission and the new bill are not attempts to expand gaming in Wyoming, merely to define what’s already there,” Driskill said. “It would also create a model that anyone who is gaming in Wyoming would need a permit or a license, so the state knew where and what gaming is occurring.”

Mike Moser, executive director of the Wyoming State Liquor Association, said he’s lobbied for both the alcohol and gaming industries throughout the years, and Wyoming could benefit from an oversight committee.

“There’s nothing keeping bad operators from coming in and setting up shop right now,” Moser explained. “(The Liquor Association) is in a highly regulated industry, and we appreciate oversight, because we serve a product that provides some wonderful benefits when consumed in moderation, much like the gaming industry.”

Many of the skill games currently operating in the state are located in places that serve alcohol, so the operators Moser represents have questions about how to keep it all above board.

“We don’t want our retailers to get in trouble,” he said.

Determining what is legal, however, is complicated, Driskill said.

“Right now, there’s really only two entities that regulate gambling — the county attorneys and the (then-Wyoming) Attorney General,” he said. “Consequently, because of the number of lawsuits in the works by the gaming industry, (the county attorneys) aren’t willing to take it on, because these guys have enough money to take it to court. They don’t want to end up in endless litigation.”

Mired in gray areas and absent the support of county attorneys, gambling is being overlooked by local law enforcement, Driskill added.

“From the testimony we’ve had in the counties, their law enforcement in cities and counties don’t know what’s happening in their boundaries at all,” he said. “It really leaves it to the Wild, Wild West.”

Despite most gambling being illegal throughout the state, games are taking place on a regular basis. But, without oversight, the players bear all the risk.

“The machines that are out there, you don’t know what they’re set at, 1 percent (payout) or 80 percent,” Driskill said. “You really don’t have anywhere to go if someone cheated you in a poker game or to report a bad machine.”

A gaming commission could alleviate many of these problems, but it’s not a new idea.

“Gaming commissions have been proposed in some form for the last decade,” Moser explained. “We’re the only state that doesn’t license bingo or pull tabs, and the skill games are falling into the same area.”

Skill games are typically defined as games in which interaction with the player affects the result, he said.

“They consider video poker as a game of chance,” Moser said. “Games of skill are legal and games of chance are not for the most part.”

Responding to an inquiry from Natrona County District Attorney Michael Blonigan requesting a formal opinion regarding some machines manufactured by Banilla Games, Attorney General Peter Michael listed ten skill games his office deemed gambling. Those games include:

  • Bathtime Bucks
  • Fruity Sevens 
  • Searing Sevens 
  • Snake Eyes
  • Wheel Deal
  • Spooky’s Loot
  • Mega Money Reel 
  • Lucky Striker 
  • Major Cash
  • Pedro’s Hot Tamales

Moser explained Michael’s formal opinion determined these games were won by chance, rather than the player’s skill.

Despite the list, Driskill said numerous other machines are still in operation.

“These machines are nearly doubling every year,” he said. “The initial numbers right now indicate that the creation of the commission and authority to require licensing would raise $12 million to $15 million for the state.” 

With or without oversight, Driskill said gambling is growing in the Cowboy State.

“The biggest takeaway is whether you’re pro-gaming or against, you’re going to have major expansion in gaming if you don’t do anything with it,” he said.

State Fair endowment provides solid footing for years ahead

in News/Agriculture
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Don’t miss this report from the 2019 Wyoming State Fair highlighting what the opportunity to show in Douglas means to 4H kids and their parents. (Video by Mike McCrimmon)

By James Chilton, Cowboy State Daily

DOUGLAS – This year’s Wyoming State Fair is over, but the next chapter of its story is just beginning as fair organizers begin to realize proceeds from the fair’s newly-established endowment fund.

Approved by the state Legislature in 2018, the Wyoming State Fair Endowment was established to provide a permanent, stable and consistent source of funding to draw on in future years, rather than rely on appropriations from the state’s General Fund — its main banking account —  which is subject to swings based on the fortunes of the energy and tourism markets.

“It’s always been (dependent on) the General Fund, and when you have a downturn in the economy, that impacts your ability to use those funds,” said Doug Miyamoto, director of the Wyoming Department of Agriculture. “The state fair has always operated as an educational venue and a state championship for youth in agriculture. Over the past couple of years the philosophy’s changed, and I think the legislature is looking to transition to more of a pay-to-play type situation.”

Individual and business donors have raised $100,000 for the state endowment in its first year, which was matched dollar-for-dollar by the state treasurer’s office. That’s on top of the $100,000 the endowment started with from its initial legislation, and another $1.1 million added by the Legislature in this year’s supplementary budget bill.

But by far the biggest gift to the endowment to date was $2 million from the Wyoming Pari-Mutuel Commission, which oversees the state’s live and off-track horse race wagering. 

“That shot in the arm from the Pari-Mutuel Commission is certainly one that’s appreciated,” Miyamoto said.

With $3.3 million to start with, Miyamoto said the fair will generate $150,000 a year in interest, with three-quarters of that to be reinvested into the endowment. As the corpus grows, Miyamoto said the 25 percent left over for operating revenue will trend upward too; but it won’t be the only new revenue source for the fair going forward.

“The endgame is to diversify the funding sources for the fair, so the endowment is one aspect of a larger strategic effort,” Miyamoto said. “We got a new state fair board who can reach out to businesses around the state and get some corporate sponsorship for the fair, try to use the facilities to generate revenue. We’re going to push as hard as we can to get sponsorships and contributions up.”

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