Wisconsin Sports Betting Bill Faces Pushback Over Tribal Revenue Share Language

Some of the best sportsbook operators have voiced concerns over Wisconsin's proposed legislation to legalize statewide mobile sports wagering, citing both cost and legal clarity issues that could impede their success. 

Under the current framework, tribes would receive 60% of gross revenue from mobile wagering conducted through servers on tribal lands. This share industry representatives said would make operations financially unviable for major national brands.

During a Senate hearing on Tuesday, a representative from the Sports Betting Alliance, which includes DraftKings, FanDuel, BetMGM, Fanatics, and bet365, said that while the group supports expanding mobile betting, the current bill is flawed. Senate Bill 592, as does its Assembly Bill 601 companion, follows a "hub and spoke" model similar to Florida's, allowing residents to place bets anywhere in the state so long as the wagers are routed through tribal servers.

SBA counsel Damon Stewart described the plan as "a bit of a rush," emphasizing that the bill's language, which defines mobile wagers as exceptions to Wisconsin sports betting prohibition, needs revision to prevent legal exposure. Sen. Howard Marklein said any change would require renegotiation of gaming compacts and federal approval from the Bureau of Indian Affairs.

Forest County Potawatomi Attorney General Jeff Crawford said the state's professional sports teams support regulated expansion, noting that the measure would shift betting activity away from offshore markets, which accounted for $1 billion in wagers from Wisconsin residents in 2024.

Ho-Chunk Nation sues Kalshi

As lawmakers debate expanding legal wagering, the Ho-Chunk Nation of Wisconsin has filed a federal lawsuit against Kalshi, accusing the prediction market app of violating state, federal, and tribal gaming laws. The lawsuit, filed in August, claims Kalshi operates an unlicensed gambling platform accessible nationwide, including on Ho-Chunk lands, through its website and mobile app.

Sports betting in Wisconsin remains restricted to tribal casinos under compacts with the state, but Kalshi allows users to stake money on outcomes ranging from sports to politics. The company maintains it functions as a federally regulated financial exchange, not a sportsbook, arguing its contracts are tradable assets overseen by the Commodity Futures Trading Commission.

Ho-Chunk Nation President Jon Greendeer disputed that defense, calling the platform "clearly a gambling operation." The complaint also accuses Kalshi of false advertising for labeling itself "The First Nationwide Legal Sports Betting Platform" and using marketing phrases like "You can bet on that." It cites statements made by CEO Tarek Mansour in a TikTok video promoting bets on political and social outcomes.

The Ho-Chunk Nation, represented by law firms Rapport and Marston and Quarles and Brady, is seeking an injunction to stop Kalshi's operations on or near its lands, as well as monetary damages for lost tribal casino revenue. Similar lawsuits were filed by three California tribes earlier this year.