A lottery without instant tickets can make for a wild ride, but the WyoLotto team has had a lot of fun along the way and is looking forward to a bright future.
By Patricia McQueen
Published January 21, 2025
Wyoming may be the smallest U.S. state by population (just 587,618 on July 1, 2024, as estimated by the U.S. Census Bureau), despite being the ninth-largest in land area, but its lottery, WyoLotto, has been a winner since the first tickets were sold on August 24, 2014. One of just two American lotteries whose legislation only allows draw games, the resulting dependence on jackpot games has provided a revenue stream akin to that of a bucking bronco – up and down, up and down. Perhaps it’s appropriate, at least for now, since the iconic Bucking Horse & Rider image is a trademark of the state of Wyoming and rodeo is the state’s official sport.
Yet unlike North Dakota, the only other state without instant games, Wyoming is able to offer its own in-state draw games. Cowboy Draw, launched in March 2015, has been a big hit, often outselling the national games. Most recently, the introduction of Keno in September 2022 provided a new path for growth, along with less dependence on jackpots. Even more game diversification opportunities are potentially waiting in the wings.
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To date, WyoLotto has generated more than $40 million in revenue for its beneficiaries since inception, after paying off its startup loan – no state funds were used at launch. Thanks to player support, that loan was paid in full early, in January 2016, allowing WyoLotto to make its first revenue transfer to the state treasurer in April 2016. The treasurer then distributes all lottery revenue to Wyoming’s cities, towns and counties, providing them with an unrestricted cash flow which can be used wherever their needs are greatest.
It’s a great story to tell, but not an easy one. “Smaller lotteries like us have smaller portfolios and less impactful stories,” notes Chief Executive Officer Jon Clontz. Yet he has always appreciated the fact that lottery revenues are distributed to local governments for use as needed, and knows there are stories just waiting to be told. He cited a recent example of one jurisdiction purchasing new police cars and hiring new officers with lottery money. A key WyoLotto goal this year is to find more of those types of stories to really show impact of lottery revenues at the local level.
Meanwhile, the team took advantage of the 10th anniversary last summer to publicly thank key stakeholders and supporters with an exclusive event in Cheyenne on August 28. In attendance were the Lottery’s entire staff of 10 and several members of its Board of Directors, plus invited guests that included members of the legislature, key sponsorship and retail partners, and a few prominent citizens. The highlight was an appearance by Governor Mark Gordon, who thanked legislators and stakeholders for the support over the years and congratulated everyone involved in WyoLotto’s operations. Four days before, on the actual anniversary date, the Lottery’s team was out in the field, celebrating with retailers who were all decked out in 10-year anniversary swag.
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A Select Game Portfolio
WyoLotto launched with Powerball and Mega Millions, and over the years there have been seven second-tier prizes of at least $1 million won in Wyoming. The largest of these was a $5 million Mega Millions+Megaplier prize won in 2016 and a $2 million Powerball+Power Play prize in 2018.
A Wyoming player has also won big in Lucky for Life, as the game’s top prize of $1,000 a day for life ($5,750,000 cash) was won in 2020. That game was introduced in the state in December 2016.
As noted, the home-grown Cowboy Draw has done very well. It has produced many jackpots greater than $1 million, and the current record jackpot is a prize of more than $3.5 million won in 2023. Drawn twice weekly, Cowboy Draw is a 5-of-45 cash lotto game, with two sets of numbers included in the $5 ticket price. It has a 68% prize payout to sweeten the offer. Clontz recalls that when it was first launched, there was concern about the price point, but those concerns proved unfounded and a number of second-tier $1,000 prizes are won weekly. “People win prizes that are meaningful, so they are loyal and keep coming back to play. Even though we’ve got the lowest population in the whole country, we still are able to generate a volume that keeps that game producing for us.”
It doesn’t hurt that Cowboy Draw takes its name from Wyoming’s official nickname, the Cowboy State, and features a logo with two upturned pistols. “It’s really cowboyed up,” explains Clontz. “People in this state really love that and feel like they have some ownership in the way it’s branded and marketed.”
Rounding out the current lotto portfolio is 2by2, a regional game also played in Kansas, Nebraska and North Dakota. It was introduced in Wyoming in March 2021, as the state’s first daily draw game. (Lucky for Life expanded to daily drawings in July that year.)
Those five games are also offered as a package deal called Roundup – one of each game, including any options, for $14. The Roundup button has become quite popular, especially when one of the jackpots is huge.
WyoLotto tried its first raffle game, Ragtime Raffle, in the summer of 2019, but it failed to live up to expectations. Raffles continue to be an enigma in the American lottery industry, doing exceedingly well and rapidly selling out in a few jurisdictions while attracting little interest from players in others.
Then came Keno, which brought in $5.4 million in sales during FY24, or about 13% of total sales. It took a lot of convincing on the legislative front to get permission to offer the new game, but a full explanation of what Keno is (a numbers game with drawings), and isn’t (an instant game), helped get it through. Keno ticket dispensers were attractive to the new types of locations being recruited for the game – bars and taverns – who didn’t want to tie up their wait staffs; about 70 such dispensers are currently in use.
Clontz had experience with Keno from his time as Deputy Director of the Oregon Lottery. “I knew that Keno is sort of a slow-growth game and you have to stay on top of it more so than other games.” It’s also important to teach people how to play to generate interest. As a result, WyoLotto has been active with player outreach through Keno parties and extensive store visits. The game has brought in new types of retailers for the Lottery, particularly bars and taverns. Prior to launch, there were about 430 lottery retailers; today there are about 520 with an ultimate goal of 600, each offering all lottery products. “Keno is producing as we hoped it would,” says Clontz. “A lot of people seem to enjoy it, and it’s definitely providing a more predictable revenue stream that’s not reliant on jackpot trends.”
It’s especially important to promote the Roundup draw game package as a purchase option in Keno venues, where people may not normally think of games drawn daily or two or three times a week. Especially when one of the jackpots is large, those locations do quite well with Roundup purchases.
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Big Wyoming Promotions
While Cowboy Draw provides a winning formula as a Wyoming-only game, an important component of its success is a Buy One, Get One offer as part of an extensive sponsorship partnership with the University of Wyoming that includes a variety of giveaways, celebrations and promotions involving several team sports. Whenever the UW Cowboys (or “Pokes” as they are often called, the classic Western reference to Cowpokes) win a game during the football season, the following Sunday from 11am to 2pm, players can go to any WyoLotto retailer and buy one Cowboy Draw ticket and get one ticket free. “This promotion continues to be popular with our players and each year gets more important to increasing our sales for this game,” notes Chief Operations Officer Robin Medina. “Our players expect this promotion, and it almost markets itself,” adds Clontz.
Other BOGO offers have been successful as well, such as Cowboy Draw with UW basketball games and a series of Powerball promotions as well.
While the partnership with UW is critical, it came after WyoLotto established its presence in the state with a partnership with Cheyenne Frontier Days, a 10-day rodeo and western extravaganza known far and wide. “They were a huge springboard for us in the early years,” notes Clontz.
Aside from these and other all-important corporate partnerships, face-to-face interaction with players has been a hallmark of other fun promotions over the years. “People in Wyoming like to see you out there, more so than in my experience in other states,” explains Clontz. One of the biggest efforts involved a pre-launch promotion for Lucky for Life, when he rode a sleek black Harley-Davidson trike across the state; a Chevrolet Camaro also made the journey. “We visited fairs and carnivals, passed out swag and gave away $100 bills. It’s fun to get out there and just do it. In my opinion, that makes all the difference.” At the end of the statewide tour, brand new versions of those two vehicles were given away.
Trucks are popular promotional prizes, and in keeping with the cowboy theme, WyoLotto once offered a horse in a promotion. Well, the offer was for the cash necessary to buy a nice horse, but the horse featured prominently in the advertising. The winner chose the cash.
“These and other player promotions have helped launch new products, support major game changes, and engage with players during lower jackpot levels,” explains Medina. A variety of channels are used to get the greatest reach, depending on the goals of each promotion. Smaller promotions and giveaways are supported through internal corporate communications such as digital marketing. Social giveaways are popular with this audience and prizes can be swag or gift cards. “These promotions drive engagement and show our appreciation for our players.”
Normally, Wyomingites haven’t had a lot of interest in prizes that include trips to other destinations. One big exception was the Living Lucky with Luke Combs promotion offered by Atlas Experiences. For most lotteries, entering the promotion involved a themed instant game or second-chance opportunity. WyoLotto took the opportunity to promote Keno in the summer of 2023; the game was only a few months old. “We wanted to bring awareness and generate excitement for our players, and Luke Combs was a great incentive,” says Medina, adding that the country singer also appeals to a desirable younger demographic. The promotion was in the spotlight at WyoLotto’s summer events, such as the Wyoming State Fair and rodeos throughout the state. The winner and guest were announced on-field during a University of Wyoming football game.
“That generated a lot of excitement, and it was a tremendous success,” says Clontz. As a result, WyoLotto will be looking for more opportunities to branch out, especially finding economic ways to provide bigger prizes for players. “That’s a big value for smaller lotteries,” notes Medina. One such promotion could be a future NASCAR Powerball Playoff.
Also in the works are retailer-specific promotions, and WyoLotto staff are still investigating how best to implement a loyalty program to further grow customer engagement. “With such a small staff, we evaluate the logistic challenges that might occur during the fulfillment phase and will build a strategy based on resources,” says Medina. Smaller giveaways and social media efforts are also important to remind players that even small jackpots are life-changing.
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Responsibility is Key
While it depends on Wyoming’s players for revenue, WyoLotto has taken the lead among the state’s gambling providers to ensure that the fun doesn’t come at too great a social cost. When the legislature authorized a lottery in 2013, it also authorized historic horse racing (gaming machines with the look and feel of slots, but pari-mutuel in nature and based on the results of historic horse races). It was a significant expansion of gaming in the state, which previously had only three tribal casinos, off-track betting and limited live horse racing.
As WyoLotto took shape, it was important to develop a partnership with the state’s Department of Health (DOH) and other stakeholders to lead responsible gambling efforts in Wyoming. “We contacted the DOH, and while they had addiction specialists, none were specifically trained in problem gambling,” recalls Clontz. Therefore, one of the first tasks was to help provide problem gambling training for selected individuals at the DOH.
Initial funding for that training came from the legislated requirement that WyoLotto provide up to $200,000 annually for responsible gambling efforts on an as-needed basis – funds are replenished as they are used. The money comes from a share of the unclaimed prize fund; the balance of that fund supplements future prizes.
In 2018, WyoLotto spearheaded the formation of the Wyoming Responsible Gambling Coalition (WRGC), a group that includes a number of stakeholders including the Wyoming Council on Problem Gambling. The Coalition members work together to determine where the required funding should be spent to best serve Wyomingites. “Today, I think the Coalition is a pretty refined, well-running group in its structure and its mission, vision and values,” says Clontz.
That said, it has been challenging to get participation from other Wyoming gambling operators, despite the recent addition of sports betting and the proliferation of skill games operators. “We’re the only gaming entity in the state that worked with the Wyoming Department of Health to establish the WRGC, which provides resources to help practice safe gambling and identify problematic behaviors.”
WyoLotto remains committed to promoting responsible gambling, and last year obtained certification at the planning level in the NASPL/NCPG Responsible Gambling Verification Program.
Challenges, and Opportunities, Ahead
The rise of sports betting in Wyoming didn’t seem to have any immediate impact on WyoLotto sales, but Clontz thinks he’s seeing a shift now, particularly when combined with the proliferation of “mini casinos” with so-called skill games, plus the continued development of historic horse racing. In 2024, historic horse racing surged well past $2 billion in handle (up considerably over 2023), and online sports betting continues growing since its debut in September 2021.
“I think we are starting to feel the impact of a micro niche of players who are looking for the more exciting opportunities they can find with sports betting and in the mini-casinos filled with skill games. Those games are really one of my biggest concerns going forward. How can they not start having an impact?”
It will be up to the WyoLotto team to find ways to reduce dependence on jackpot games, engage with players and keep up the entertainment value of lottery. Clontz is looking at other products, perhaps niche games that have these important attributes even if they provide smaller revenue streams. Fast Play is one such possibility, with a legal determination that it does not constitute an instant game as defined by the statute, as is Perfect Pick, Intralot’s version of a one-number game. And he’s still quite hopeful that the prohibition on scratch games will be lifted before too much more time goes by.
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The legislature may be considering an iGaming bill this season, which would add yet another form of gambling to the state, so Clontz thinks it’s a good time to push hard on a bill to remove the ban on using debit cards for lottery purchases. Lottery has always been a cash-only purchase in Wyoming, which is counterproductive in today’s society. “We get a lot of complaints from people who want to use debit cards for lottery purchases, especially from the huge volume of truckers who pass through the state. No one wants to make two transactions when they stop at a store.” He suspects WyoLotto is losing 5% to 7% in potential sales just because lottery tickets must be purchased for cash.
New games and new payment methods are a relatively small ask considering the other forms of gambling that have taken hold in Wyoming. “We can’t maximize revenue to the state if our competition is going to develop all these new things.”
All in all, Clontz is thrilled to have raised over $40 million for the state, and is confident Wyoming is ready for so much more.
