123The Wisconsin Assembly votes Wednesday on whether to legalize sports betting
If approved, all online servers would be located on tribal land
Supporters believe the bill has bipartisan support for approval
If all goes well on Wednesday, Wisconsin will become the latest US state to offer legal and regulated online sports betting. The Wisconsin state assembly is set to vote on this issue.
Two separate bills are moving forward toward passage by state legislators. Senate Bill 592 was introduced by Senator Howard L. Marklein.
Assembly Bill 601
was put forth by Rep. Tyler August.
“I don’t gamble, but I think it’s the right thing to do, based on some of the data that we’ve seen,” August said during a Senate hearing on the issue.
“This is an activity that’s not declining, it’s increasing. And I think that it’s appropriate for us to deal with this now before it gets even bigger.”
Committees approve AB601 and SB592
Both bills received approval from separate committees. The Committee on State Affairs gave unanimous 10-0 passage to AB601. The Senate Committee on Agriculture and Revenue gave 5-3 approval to moving forward with SB592.
These bills appear to be fast-tracking toward passage. Both bills were introduced to state legislators in October.
Tribes will be in control of Wisconsin sports betting
If the bills are passed into law, the state’s tribes will operate all Wisconsin sports betting. The state Constitution requires that any gambling must be under the management of the state’s federally recognized Native American tribes.
Retail sports betting has been legal in Wisconsin since 2021. However, all bets must be placed in person at tribal casinos.
If legalized, all servers for the online sports betting product would need to be physically located on tribal land in the state. This hub-and-spoke model is similar to how online sports betting works in Florida. There, the government is in partnership with the Seminole Tribe.
Supporters of the bill include the Ho-Chunk Nation, the Forest County Potawatomi Community, the Metropolitan Milwaukee Association of Commerce, and all of the state’s major professional teams.
Major online sportsbooks are opposing this plan
Conservative groups are among the most vocal opponents of the legalization of online sports betting in Wisconsin, citing the dangers of gambling addiction.
Perhaps the biggest surprise in this battle is that some of the major players in US online sports betting are set against this Wisconsin plan. The Sports Betting Alliance, a lobby group that represents major online sportsbooks like DraftKings, FanDuel, and Bet365, is lobbying against the passage of these bills.
DraftKings and FanDuel would be eligible to form partnerships with state tribes to run online sports betting in Wisconsin. But this plan would give 60% of all revenue from online sports betting to the state’s tribes. Betting industry reps insist that this 60-40 split isn’t economically viable for the big sportsbooks to operate in Wisconsin.
What happens next
Should Wednesday’s Assembly vote have a successful outcome, the bill would head to the state Senate for a second vote. If approval is given there, the next step is to send the bill to Governor Tony Evers. He’s already stated his public support for the legalization of online sports betting in the state.
The final step would be for Wisconsin’s tribes to renegotiate their betting compact with the state. Under the Indian Gaming Regulatory Act (IGRA), the federal government must approve any changes to tribal gambling compacts.
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