Wyoming and South Dakota Added to Legal Sports Betting Launch Race

The expansion of the US legal sports betting scene is showing no signs of slowing down. In fact, the industry is ramping up with the impending kickoff of the NFL season. As many as nine states are chasing the September 9 timeline for launch of their own legal sports betting scenes. Wyoming and South Dakota, as of Monday, have become serious contenders to be one of the first to do so.

After meetings in their respective states, Wyoming and South Dakota regulators finalized and signed off on sets of rules to govern their platforms. Legislators have acted, the public consultation process has passed and now comes the application process, followed by the rewarding of licenses for the lucky few to be a part of the Wyoming and South Dakota industries.

The pace of their legalization push is not the only thing that Wyoming and South Dakota have in common. Both states have experienced little drama during their process. Although there are a few quirky aspects in Wyoming's legalization in particular, the process in both states has been smooth and relatively simple.

Brendan Bussmann, a partner with Global Market Advisors went as far as saying “I think Wyoming set forth a strong mobile market. Some of the simpler states legislatively that have done this, aka Wyoming and South Dakota, can show other states that you don’t need to reinvent the wheel.”

A Peek at Wyoming

It was Monday that the Wyoming Gaming Commission (WGC) got together and put the foot on the pedal of their sports betting legalization process. Two days after the mandatory public consultation process, the Commission voted unanimously to proceed with their set of governing rules. Wyoming will officially be bringing in just the second mobile-only sports betting platform in the country.

It was a 9-chapter, 122-page document that regulators worked through. Included was what all that prospective new operators will face when applying for a license in the state - taxation, responsible gaming advertising and other licensing requirements. It is generally standard stuff seen in most, if not all currently operating jurisdictions around the country.

A minimum of five operators will go live with an uncapped limit pegged for the state, meaning that there is no maximum number of sportsbook licenses available.

Wyoming has a few quirky rules that makes their platform a little more interesting than the usual. Wyoming sportsbooks will be allowed to take bets from anyone aged 18+, not the customary 21+. There are no restrictions on betting on in-state college teams and sportsbooks in the state will be the first in the nation to allow cryptocurrency payments.

Now a Peek at South Dakota

Just like in Wyoming, there wasn't a whole lot of resistance to the legalization of sports betting in South Dakota. It was Monday that their state legislature approved their own ideas about how sports betting is to be governed in their state. It is the culmination of lawmakers push and Gov. Kristi Noem signing sports betting legislation into law in March.

The state of South Dakota will allow retail betting in the city of Deadwood only for the time being. It's what voters approved on the November 2020 election ballot and what regulators have delivered.

The lack of even any mention of a mobile sports betting platform will definitely hold the overall platform back. Successful mobile betting platforms in participating states often see 90% of their jurisdiction's overall handles coming from internet apps.

“The rules allow for [on-premises mobile], I’ll be curious if any jump onto that,” Mike Rodman, executive director of the Deadwood Gaming Association said. “South Dakota is a pretty conservative state, so we have a go slow approach. Maybe sometime in the future we’ll see statewide mobile. We have to prove ourselves in Deadwood and do a good job.”

Raring to Go

There is still work to do to get both the Wyoming ad South Dakota legal sports betting scenes off the ground. The application process has yet to begin, meaning that there will be some time between now and when those applications are accepted, considered and awarded. The providers will have to get their infrastructure in place prior to an actual launch.

The goal for both Wyoming and South Dakota legal sports betting scenes is the start of the NFL season for launch. The smart money is on both being able to do just that. “I think people have realized that sports betting is a mainstream thing,” as Brendan Bussmann, a partner with Global Market Advisors said. "It’s just a matter of when, not if, at this point that states are going to move.”