Crypto Gambling in Wyoming

Wyoming’s revolutionary law in April 2021 was a massive boost for gaming and blockchain enthusiasts alike. The law saw the legalization of online sports betting, allowing players to place their bets in crypto tokens.

House Bill 133, signed by the governor, allows sportsbooks to accept “digital, crypto and virtual currencies” bets in place of cash. The only condition is that it must be possible to convert these tokens to cash. Crypto inclusion is almost second nature not, and the law’s crypto rider shows how the lawmaker’s in Wyoming include crypto tokens as a vital part of the legislative agenda.

Wyoming was also one of the first states to come up with bills to woo crypto token businesses. State Senator Jeff Wasserburger (R-Gillette), one of the bill’s sponsors, said there was not much discussion about including crypto as part of the bill. He also said, “I think that Wyoming legislators are getting more comfortable with cryptocurrency as the issue evolves in our state.”

Cryptocurrency in Wyoming

Wyoming has a long history of passing pro-crypto bills. In 2019, Wyoming passed a series of bills to make the American state a destination for crypto and blockchain businesses.

Recognition of Digital Assets as Property

The House of Representatives had passed the SF025 bill, which recognizes digital assets as property. This ideally makes it easy for banks to act as custodians for crypto assets. It passed a House vote 54-2 and concurred unanimously in the Senate with 29 votes for and none against.

The bill states that “Digital consumer assets are intangible personal property and shall be considered general intangibles, as defined in W.S. 34.1‑9‑102(a)(xlii), only for the purposes of article 9 of the Uniform Commercial Code, title 34.1, Wyoming statutes.”

This bill also includes provisions that allow banks to offer custodial services for digital assets. The only condition is that they have to comply with accounting, internal control, and standards. Caitlin Long, the co-founder of Wyoming Blockchain Coalition, expressed the opinion that this bill would propel the growth of crypto startups while aiding the state and users. This was a big step forward for crypto enthusiasts in the state.

Stocks and Banking

The Wyoming House of Representatives passed two other bills related to crypto asset regulation- HB 0074 and HB 0185. HB 0185 allowed securities to be issued in tokenized forms. It means that using crypto tokens to represent a stock certificate is legal in Wyoming.

Long’s website also highlights that HB0074 helps create many institutions that can help businesses that cannot acces traditional banks.  This is very important for crypto businesses that were forced to shut down because traditional banks did not support them.

Clear Regulations

Two Ocean Trust, a Wyoming chartered-trust company,  got a “no-action” letter from the Wyoming Division of Banking, classifying it as a “qualified custodian,” as per the Advisers Act of 1940. This is interesting, as SEC regulations require investment advisers to store assets with a “qualified custodian.” Crypto markets failed to gather any clarity on the term’s application for crypto assets until now.

Therefore, Wyoming is undoubtedly the number one destination for those looking to safely park their digital assets and crypto tokens or start a blockchain-based business. These laws help in creating a great environment.

Wyoming’s Legalised Crypto Gambling

HB133 allows gamblers to fund accounts with crypto tokens. State Rep.- Tom Walters (R-Casper), another bill sponsor, said it would be applicable for all operators or sportsbooks willing to accept crypto tokens.

What Does This Mean For Players?

As a part of the bill, the legislative assembly in Wyoming also endorsed crypto-asset accounts in multiple online sports betting platforms. Here, players can use tokens in all formats in place of cash. It means that gamblers are free to utilize their crypto tokens in place of cash or cards with all sportsbooks that are willing to accept them.

How Will Sportsbooks Implement This?

Online casino operators are concerned about the volatility of crypto prices, and rightly so. If a player puts up a wager of a single token and succeeds, the casino platform will have to pay the original stake, and he will win the amount. If the price surges in between, the platform will have to pay the difference and the winning amount, which is a huge risk. Sports betting is not predictable, and there have been numerous examples of casinos that have had to close down due to insolvency.

Therefore, casino operators will undoubtedly take adequate precautions before accepting crypto tokens like Litecoin, Bitcoin, and Ethereum. It will reduce the risk to their business model rather than implementing a crypto support system without considering the consequences.

Is This a Good Move?

Betting with crypto tokens is undoubtedly prevalent in many casinos around the world. It is a good option, as it offers

  • Better security
    • The impenetrable nature of the blockchain technology that supports crypto tokens is a measure of security for players and the casino alike. As a result, there are lower chances of funds getting stolen.
  • Quicker transactions
    • Crypto tokens like Litecoin have very low transaction times for deposits and withdrawals. But, quicker transactions will avoid the wait. Players can top up their accounts and place their bets immediately.
  • No Additional Fees
    • Since crypto-assets are decentralized, the players no longer have to use intermediaries to carry out transactions. Thus, this method takes out any additional charges and rates, making it more efficient.

For all these reasons, the players would certainly enjoy the hassle-free experience of wagering with crypto tokens. Also, the amount of privacy and safety it offers is unparalleled.