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- Wisconsin online sports betting talks continue in Madison
- State lawmakers think federal law allows tribes to accept online sports bets under certain conditions
Legislation to bring Wisconsin online sports betting is making headway in the state capital in Madison.
The Cranfest Parade in Warrens, WI, is pictured on Sept. 25, 2022. Wisconsin online sports betting legislation is making progress in Madison. (Image: Shutterstock)Last month, Casino.org reported on bills being filed in the state Senate and Assembly that seek to clone Florida’s hub-and-spoke model of tribal online sports betting in the Badger State.
Federal courts have set a precedent that federally recognized tribes with state privileges to conduct sports betting on their sovereign lands can lawfully accept sports wagers remotely. The condition is that the tribe’s computer server that facilitates the online sportsbook remains on the tribe’s territory.
The Bureau of Indian Affairs ruled, and the federal courts upheld, that the so-called hub-and-spoke approach falls within regulatory interpretation of the Indian Gaming Regulatory Act (IGRA). The federal statute regulates gaming on Indian lands.
Bill Advances
Wisconsin’s current sports betting market is limited to tribal casinos owned by 11 compacted tribes. The tribes maintain a monopoly on casino gambling and sports betting.
Senate Bill 592 and its Assembly counterpart, AB601, seek to expand sports betting to the internet. The bills jointly received a public hearing on Nov. 4, where much of the input favored allowing the tribes to conduct online sportsbooks.
Supporters said online sports betting is already rampant in Wisconsin, but the action is being taken by offshore, unregulated sportsbooks that pay no taxes, do not provide responsible gambling safeguards, and aren’t monitored for fair play. Consumers have no guarantees that their money is safe or that their winnings will be paid.
This bill is a first step in ensuring that consumers will be able to have a legal, regulated, and protected way of participating in this extremely popular technology,” said Jim Crawford, the Potawatomi’s attorney general, as reported by the Wisconsin Examiner.
Opposition was also raised. Typical arguments, such as claims that legal online sports betting will increase problem gambling and financial ruin, were voiced.
The Sports Betting Alliance (SBA) lobbies state legislatures on the merits of authorizing iGaming and sports betting. The group’s members, inclusive of sports betting dominant players DraftKings and FanDuel, encouraged Wisconsin lawmakers to amend the revenue-sharing stipulations of SB592/AB601.
The SBA suggested that the IGRA’s mandate that the tribes receive a minimum of 60% of the online sports betting revenue would dampen interest from commercial sportsbook operators. The lobbying organization suggested it would be in the best interests of the tribes and state to authorize online sports betting aside from IGRA, as did neighboring Michigan.
The SBA argues that if regulations don’t attract the big names like DraftKings and FanDuel, the offshore market, which includes brands with strong name recognition, will continue to thrive against tribal startups.
Wisconsin would presumably need to conduct a statewide ballot referendum to amend the state constitution to provide the tribes with online sports betting privileges not governed by the IGRA.
Senate Statute Advances
Following the Wisconsin online sports betting public hearings, lawmakers focused on moving SB592 through the Senate. Last week, the bill cleared the Senate Committee on Agriculture and Revenue by a 5-3 vote.
SB592 is now available for scheduling on the full Senate floor.
No state has passed legislation to legalize sports betting in 2025. Missouri was the last to authorize sports gambling during the November 2024 election.
The post Wisconsin Online Sports Betting Bill Advances in State Senate appeared first on Casino.org.
