Gaming commission, operators and LSO outline HHR terminal counts, self-exclusion, AML gaps and proposed financial-security steps

The Wyoming Gaming Commission and industry representatives briefed the Select Committee on Gaming on the mechanics, scale and compliance controls for historic horse racing (HHR) and off-track wagering (OTB), and Legislative Service Office staff summarized anti–money-laundering (AML) recommendations.

The commission’s director described HHR terminals as pari-mutuel wagering devices that use the results of previously run, sanctioned horse races as the underlying pools and said the visual “slot‑machine” presentation is “just eye candy.” The director gave the committee current counts: 45 approved off‑track wagering locations across the state, 41 operational and 4 under construction; 5,929 approved terminals statewide and about 3,034 terminals currently on floors.

On self‑exclusion and customer protections, a commission witness said online sports‑wagering operators have extensive know‑your‑customer data and can block self‑excluded players automatically, which can result in a false positive; in-person venues rely on operators to update local exclusion lists and to remove self‑excluded players from advertising and outreach.

“Online sports wagering is…easy to self exclude…they have all those data points,” the witness said, adding in-person operators “immediately are put onto their self exclusion list” once exclusion paperwork is processed and that operators provide brochures and staff training to recognize problem gambling.

Legislative Service Office analyst Jesse Schafer summarized a Spectrum Gaming Group recommendation that Wyoming consider criminalizing money laundering (the state lacks an express money‑laundering statute in Title 6) and that the gaming commission add financial‑security assessments to its physical‑security audits. Schafer noted the federal Bank Secrecy Act (Title 31) already applies to online wagering and to many commercial operators and that the commission plans to include AML compliance checks in operator audits.

Operators described the business rationale linking HHR/OTB revenues to live racing purses: several company representatives told the committee that purses were modest when wagering machines were first authorized and that purse pools have grown as machine revenues increased. Speaker testimony included figures: industry witnesses said 2024 statewide total purses were about $6 million and that an individual operator expects about $2.9 million in purses for its upcoming meet; one operator said its live‑meet purses in 2025 topped $2 million. Operators asked for predictability in permitting and enforcement so investments can be sustained.

Nut graf: Regulators and operators describe a mature field‑inspection regime for HHR software integrity (lab‑tested software, downloadable software signatures and a third‑party auditor who inspects sites twice a year), but they also described legal and statutory gaps in state law that complicate financial‑security enforcement. LSO and the Gaming Commission told the committee they will pursue AML financial‑security assessments and that the Legislature previously considered, but did not pass, a bill to make money laundering a criminal offense punishable by up to 10 years and a fine.

Ending: The committee asked for further detail and materials from the gaming commission, LSO and operators, including: machine‑by‑machine counts and locations, documentation of inspection and lab‑test procedures, a description of how self‑exclusion lists are created and shared across operators, and a legislative draft or options on whether Wyoming should add express state money‑laundering offenses or rely on federal enforcement channels.