On November 4, during the Wisconsin Senate Committee on Agriculture and Revenue hearing, Senator Howard Marklein introduced Senate Bill 592. The proposed legislation aims to legalize digital sports betting by allowing it on the lands of federally recognized tribes, following a “hub-and-spoke” model like in Florida. This model involves locating servers on tribal lands to serve as official betting sites, aligning with the Indian Gaming Regulatory Act (IGRA) and state tribal gaming compacts.
Senator Marklein explained to the committee that the bill is a response to the increasing popularity of sports betting, which many residents currently engage in illegally. “This is not going away; it’s only growing. We need to address it before it becomes an even bigger issue,” he asserted, emphasizing the necessity of legalizing sports betting to prevent revenue losses to neighboring states like Illinois and Michigan or the illegal market.
If passed, the legislation would necessitate renegotiating gaming compacts and obtaining federal approval from the Bureau of Indian Affairs. The aim is to bring potential economic benefits to Wisconsin’s residents, tribal communities, and the state economy. “People will continue to seek out these opportunities,” noted a committee member, highlighting the need for a legal outlet within Wisconsin.
However, the proposal has not gone without critique. Damon Stewart of the Sports Betting Alliance (SBA) raised concerns about tethering online sportsbooks to Wisconsin’s tribes, arguing that the required revenue-sharing model, which mandates operators to pay at least 60% of their revenue to tribal partners, is not economically viable for major operators like FanDuel and DraftKings. The current framework, Stewart suggested, might dissuade these companies from entering the Wisconsin market.
“It’s odd because we agree on many goals, but this isn’t the way to achieve them,” Stewart remarked, highlighting the low-margin, capital-intensive nature of online sports betting. He cited Arkansas as a cautionary tale, where similar revenue-sharing requirements have led to a lack of major operators. The limited number of local sportsbooks, he argued, would not compete with the appeal of well-known national brands, potentially failing to curb illegal betting activities.
Despite not specifying what revenue share would be acceptable, Stewart expressed the SBA’s willingness to work with tribes while ensuring commercial operators can also profitably operate in the state.
On the other side of the debate, Jeff Crawford, legal counsel for the Forest County Potawatomi Tribe, assured that Wisconsin’s tribes could effectively manage sports betting operations. The legislation enjoys support from major local sports teams, including the Milwaukee Bucks, Green Bay Packers, and Milwaukee Brewers, who back the current form of the bill.
The Ho-Chunk Nation also voiced its strong support, noting the new revenue opportunities legalization would provide. Ed Mullen, a representative for the Ho-Chunk, underscored the importance of addressing illegal betting, referencing their lawsuit against Kalshi and Robinhood for allegedly providing sports betting equivalents on tribal lands in violation of IGRA.
This ongoing debate reflects broader tensions in the sports betting industry, where the balance between state interests, tribal sovereignty, and commercial operators’ viability continues to be a challenging equation to solve. While tribes and some stakeholders see the proposed bill as a legitimate path forward, major operators fear the economic constraints might outweigh potential benefits.
Ultimately, Wisconsin’s approach to legalizing online sports betting will likely need to consider all viewpoints to create a sustainable and equitable marketplace. As the state navigates this complex landscape, the decision will set a precedent for how tribal, state, and commercial interests can coexist within the realm of online gaming.
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