Wisconsin lawmakers have initiated formal discussions surrounding a new proposal aimed at legalizing and regulating mobile sports betting through collaborations between Wisconsin’s tribal nations and online betting operators. This initiative, if realized, could considerably broaden the state’s gaming industry.
In a significant move towards statewide online betting, the Senate Committee on Agriculture and Revenue recently conducted its inaugural hearing on Senate Bill 592. This bill, co-authored by Senator Howard Marklein, seeks to authorize online sports wagering through Wisconsin’s 11 federally recognized tribes, marking an essential initial step toward the legalization of digital betting in the state. During the hearing, Marklein articulated the necessity of the bill, noting, “If we do this, it will legalize what a lot of people do right now illegally. We’ll make this legal and collect taxes on this, which we certainly need.”
The proposed framework introduces a “hub-and-spoke” system, akin to a model currently employed in Florida. In Florida, the Seminole Tribe manages online betting across the state, though all betting servers remain on tribal land—an aspect crucial for maintaining compliance with the Indian Gaming Regulatory Act (IGRA).
The legislative process necessitates Wisconsin’s tribes to renegotiate their existing gaming compacts with the state, with the changes then requiring ratification by the U.S. Bureau of Indian Affairs. The bill is a collaborative effort co-authored by Representatives Kalan Haywood and Tyler August, alongside Senator Kristin Dassler-Alfheim. Haywood emphasized the financial benefits of regulation, stating last month, “For too long, illegal, offshore entities have profited from consumers through unregulated sports wagering, without generating revenue for local economies. By regulating this multi-billion-dollar industry, we can provide a safer mobile wagering experience for Wisconsin consumers and generate much-needed revenue to invest into our communities.”
Several tribal governments have already voiced strong support for the proposal. The Ho-Chunk Nation, which recently took legal action against prediction market operator Kalshi over alleged illegal sports betting activities, testified in favor of the bill. They highlighted that the revenue generated from gaming could significantly bolster their government programs.
Jeff Crawford, the Attorney General for the Forest County Potawatomi Community, also expressed support. He noted that Wisconsin’s major sports teams—the Bucks, Brewers, and Packers—are in favor of legalization. Crawford emphasized that Wisconsin residents are already wagering millions annually on offshore sites. With state regulation, consumers could be better protected, gambling issues could be addressed, and the local communities could benefit economically from the betting revenues.
However, the proposal has not been met with universal acclaim. Senator Andre Jacque has voiced reservations about expanding gambling throughout the state. Furthermore, the Sports Betting Alliance (SBA), representing leading sportsbook operators in the United States, has expressed concerns regarding certain elements of the bill. While the alliance supports the concept of legalization, it disagrees with the proposed revenue-sharing model under IGRA. The SBA contends that requiring operators to allocate 60% of revenue to partner tribes renders participation “economically unattractive.” They argue that this percentage is excessively high, to the point that it could result in financial losses for operators, thereby making the partnership unfeasible. The alliance suggests that alternative models, such as those in Michigan, offer more equitable partnership terms.
As stakeholders closely monitor developments, DraftKings, which already operates a retail sportsbook in conjunction with the Lac du Flambeau Band of Lake Superior Chippewa Indians at Lake of the Torches Resort Casino, is particularly attentive to the outcome. Wisconsin’s journey towards legal online betting began in 2021 when Governor Tony Evers approved in-person wagering through new tribal compacts. Senate Bill 592 could represent the next pivotal step, potentially determining whether Wisconsin will join the increasing number of U.S. jurisdictions embracing regulated online sports betting.
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