Wisconsin's Online Sports Betting Bill Advances amid Debate Over Tribal Structure
A bipartisan bill to legalize online sports betting in Wisconsin advanced through the Legislature this week.
That moves it closer to a Senate vote after being approved 5-3 by the Senate Committee on Agriculture and Revenue. The measure, introduced in late October, would expand the state's existing in-person tribal betting system to include online wagering under a "hub and spoke" model.
Under this plan, Wisconsin sports betting servers would be housed on tribal land, aligning with the Wisconsin Constitution's requirement that federally recognized tribes manage gambling. The structure mirrors Florida's system with the Seminole Tribe and its Hard Rock brand.
Proponents, including legislators from both parties, tribal representatives, and professional sports teams, said that legalizing online betting would channel hundreds of millions in untaxed wagers into a regulated market. They argued that Wisconsin residents already place roughly $1 billion in illegal online sports bets annually.
Supporters also emphasized potential tax benefits and consumer protections, while critics warned that the bill was being rushed and could increase problem gambling. Experts testified that the convenience of online wagering could worsen addiction rates, as bettors can gamble privately from home.
If passed, legalization would not take effect immediately. The state and tribes would need to renegotiate existing gaming compacts, followed by federal approval from the Bureau of Indian Affairs.
Lawmakers such as Rep. Tyler August said acting now would curb illegal betting growth, while others, including Sen. Andre Jacque, expressed concern about addiction risks.
Revenue-sharing concerns and brand resistance
The proposed bill's 60% revenue-sharing requirement for tribes under the Indian Gaming Regulatory Act has drawn pushback from major sportsbook operators.
Representatives of the Sports Betting Alliance (SBA), of which DraftKings, FanDuel, BetMGM, Fanatics, and bet365 are members, told senators last week that the high cost would make it uneconomical for national brands to operate in Wisconsin.
SBA counsel Damon Stewart said the process is moving too quickly. He argued that while the alliance supports legal online betting, the current framework doesn't appear to be the best solution. The bill would redefine "bet" under state law, allowing wagers made through servers on tribal land to be exempt from existing gambling restrictions.
Sen. Howard Marklein noted that any changes would still require compact renegotiations and approval from the Bureau of Indian Affairs. While tribal attorney Jeff Crawford highlighted that major Wisconsin sports franchises support the expansion, stating it would redirect offshore wagering, estimated to have grown from $150 million in 2018 to over $1 billion the previous year, into a regulated environment. He also dismissed suggestions that tribes lack the capacity to operate statewide sportsbooks.
Stewart countered that the model, similar to those in Florida and Arkansas, could limit consumer choice and fail to compete with illegal markets. He described sports betting as only producing low margins, adding that the proposed 60% revenue-sharing requirement is not economically viable for the tribes.
