Local leaders should say where gaming parlors are allowed, how many can exist

In 2013, state lawmakers passed legislation designed to rescue Wyoming’s live horse racing industry. Eleven years later, although interest in racetracks seems stronger than ever, the reality is that these facilities are a gateway into a much larger, more lucrative business.

That’s because the bill in question authorized companies that own live horse racetracks in the state to also operate historic horse racing (HHR) machines to help fund their operations. While there have been legal challenges as to whether some of the specific machines brought into the state truly met the definition of “historic horse racing” in the bill, these types of devices have remained.

And as the past decade-plus has shown, that was just the toehold the gambling industry needed.

Today, with the Legislature also allowing a variety of “skill-based” games and sports betting, Wyoming’s gambling industry is estimated to top $1 billion per year, with more sites popping up nearly every month. Here in the capital city, there are at least seven locations with gambling machines, and at least two more are proposed.

Although we believe in letting the free market decide how many of any type of business is too many, we share the concerns voiced by members of the Cheyenne City Council and other local leaders in the state who argue they should have the final say on where these businesses can operate.

That’s why we support several bills being considered by the Legislature’s Joint Appropriations Committee. One, titled “Local approval for historic horse racing permitting,” would extend the approval of HHR permits to cities and towns. Currently, these permits are approved at the county level once the Wyoming Gaming Commission grants a business the necessary approvals to operate in the state.

Rep. Tom Walters, R-Casper, who chairs a working group formed through the JAC to address gambling issues, said allowing cities and towns to regulate these permits would give police departments the jurisdiction they need to intervene, when necessary. As it stands now, only the county sheriff has the ability to regulate if a fight were to break out at one of these locations, Walters said.

Since Wyoming leaders profess to believe in local control, we believe it’s essential to give communities this authority. But there’s more to this issue than just where these gaming parlors are allowed to operate.

Many of the state’s residents — especially here in Cheyenne — have voiced growing concern that Wyoming is being overrun by out-of-state business owners more interested in getting rich than doing something that benefits those who live here.

Another bill draft before the JAC, titled “Quantity and locations for historic horse racing devices,” attempts to regulate and limit the number of facilities like Horse Palace, Wyoming Downs and Derby Club (all of which operate in Cheyenne, with the first two having three locations each). It’s unclear if this bill will make it to the 2025 general session, but at least it shows the Legislature’s interest in regulating the expansion of the gambling industry.

What also could help push lawmakers toward additional regulation is the results of an independent study being done at the request of the Wyoming Gaming Commission. Spectrum Gaming Group has been contracted by the state to conduct a feasibility study to help leaders try to get their arms around the current state of gambling in Wyoming. The hope is that once it’s done, legislators will have a clearer idea of how much additional regulation is needed, if any.

Our concern is that the horse is already out of the gate. Will it be possible at this point to put limits on where gaming parlors can operate when such limits haven’t been in place for more than a decade? Is there a way to mitigate the negative consequences of increased access to gambling, which is both addictive and often takes money from those who can least afford to lose it?

It’s unclear at this point what the consultant’s report will show when it’s released later this fall. But among the questions we have are:

• How many machines and locations are appropriate? In May, Daily Racing Forum reported that Wyoming’s three existing racetracks operated a total of 2,486 devices at 43 locations. Based on a population of 584,000, that’s one machine for every 235 residents. The Thunder Plains group, which plans to open a live racetrack east of Cheyenne, has said it expects to operate as many as 1,200 machines throughout the state, a 50% increase, moving that ratio to one machine for every 158 residents. (In Kentucky, which is well known for live horse racing, HHR machines operate at about a dozen locations with a ratio of one for every 652 people, DRF reported.)
• Is there enough state oversight of these facilities to ensure they’re operating properly and fairly to the consumer?
• Are employees required to have background checks and meet certain minimum qualifications to work in gaming parlors?
• Are the odds of winning prominently posted so players know what they’re getting into and not being lured in by false promises of hitting it big?
• How much do these businesses pay in state and local taxes, and how is that money being used? Is it as obvious as the state-run lottery, or is there a need for more transparency?
• Does the state require these businesses to give a certain percentage or amount of their proceeds to fund live horse racing? What about to promote gambling addiction resources?
• Are there any requirements for how the negative impacts of gambling are communicated through advertising?

These and other questions need to be answered as quickly as possible if Wyoming’s leaders are going to grab the reins and regain any control over an industry that seems to be growing exponentially faster than anyone imagined was possible.

Sure, there are plenty of other ways for people to lose their money, whether it be lottery tickets, sports wagering or online gaming. But each of those has its own rules and regulations. Can the same be said for HHR and other types of gambling in the Cowboy State?