Wisconsin Lawmakers Advance Online Sports Betting Legislation
As the NCAA basketball tournaments captivate sports fans nationwide, Wisconsin legislators are making a significant push to expand legal sports betting within the state. A bill granting final approval on Tuesday would authorise the state's tribal gambling establishments to commence offering online sports wagering services to residents across Wisconsin. However, the legislation's future remains uncertain, contingent upon the signature of Democratic Governor Tony Evers and subsequent negotiations with American Indian tribes.
The National Context of Sports Betting Expansion
Since the landmark 2018 U.S. Supreme Court decision that overturned the federal ban, legal sports betting has proliferated from a single state to thirty-nine states and Washington, D.C. Should Governor Evers endorse the Wisconsin proposal, the state would become the thirty-second jurisdiction to permit online sports wagering, which represents the predominant method for placing bets across the country. According to data from the American Gaming Association, state-regulated sportsbooks managed nearly $167 billion in wagers last year, yielding revenues approaching $17 billion after customer payouts—a striking increase of almost twenty-three percent from the previous year.
Wisconsin's Unique Tribal Gambling Framework
Gambling in Wisconsin operates under a distinctive system where it is legally sanctioned exclusively on tribal lands through compacts between the state and indigenous tribes. Presently, sports bets can only be placed at specific tribal casino locations, with online sports betting remaining prohibited. These tribal agreements stipulate that a percentage of gambling revenues must be returned to the state; in 2024, tribal payments totalled just over $66 million derived from casino earnings.
Proposed "Hub-and-Spoke" Model and Support
The Wisconsin legislation proposes adopting a "hub-and-spoke" model, akin to the system implemented in Florida, where online sports betting would be permitted only if the critical infrastructure—such as computer servers—is physically located on tribal lands within the state. This approach has garnered support from several Wisconsin tribes and the Milwaukee Brewers baseball franchise. Advocates argue that residents are currently utilising offshore sportsbooks, prediction markets, or travelling to neighbouring states like Illinois where betting is legal, thereby depriving Wisconsin of potential revenue.
Republican Wisconsin Assembly Speaker Robin Vos expressed a pragmatic stance, stating his personal opposition to online gambling but acknowledging its prevalence: "I would rather make sure that Wisconsinites have some sort of control over that."
Opposition from Major Sports Betting Operators
The legislation has faced significant opposition from the Sports Betting Alliance, which represents prominent operators including FanDuel, DraftKings, bet365, BetMGM, and Fanatics. The alliance contends that the proposed framework is economically unviable, as federal law mandates that sixty percent of gambling revenues must be allocated to the tribes. Damon Stewart, a representative for the alliance, testified that "It is simply not economically feasible for a commercial operator to hand over 60% or more of its revenue to an in-state gaming entity, just for the right to operate in the state." The group prefers a state constitutional amendment that would open sports betting to all operators.
Political Divisions and Gubernatorial Uncertainty
The measure has exposed divisions within the Republican Party since its introduction last year. Passage in the Senate required twelve Democrats to join nine Republicans, while the Republican-controlled Assembly approved it via a voice vote without debate last month. The bill now proceeds to Governor Evers, who initially indicated he would sign it provided it had tribal consultation and support. However, Evers has recently raised concerns, noting that not all of Wisconsin's eleven tribes have registered their support. His spokesperson, Britt Cudaback, did not respond to requests for comment on Tuesday.
Potential Delays and Revenue Considerations
Even if Governor Evers signs the legislation, Wisconsin residents may face a considerable wait before they can place bets via smartphones and computers, as launching new sports betting programs often requires several months. Precedents from other states illustrate this delay: North Carolina's governor signed expansion legislation in June 2023, but online betting did not commence until March 2024. Similarly, Missouri voters approved sports wagering in November 2024, yet it launched only in December of the following year, with the state collecting a modest $659,000 in taxes from $928 million in bets during the first two months.
National Trends: Tax Adjustments and Proposition Bets
Several states have already revised their sports betting laws to capture a larger share of revenue, increasing or restructuring taxes in jurisdictions such as Illinois, Louisiana, Maryland, New Jersey, Ohio, Tennessee, and Washington, D.C. Illinois, for instance, has implemented fees of twenty-five to fifty cents on every bet placed, while Chicago introduced an additional 10.25% tax on sports betting revenues at the start of this year. Louisiana raised its sports betting taxes last year to fund college athletics, directing a quarter of online wagering tax revenue to public universities with Division I football programs.
Furthermore, the issue of proposition bets—wagers on individual player performances—has garnered attention following scandals involving alleged rigging. The NCAA began encouraging states to restrict bets on college athletes in 2023, leading Louisiana, Maryland, Ohio, and Vermont to ban individual prop bets on collegiate athletes. While more than a dozen states impose no limits on such bets, nearly an equal number prohibit them entirely, with others adopting intermediate positions.
Reported from Jefferson City, Missouri, this development underscores the complex interplay of legislation, tribal sovereignty, and economic interests shaping the future of sports betting in Wisconsin and beyond.
