Wisconsin is on the verge of launching online sports betting following the signing of new legislation by Governor Tony Evers. This law permits mobile wagering under a framework led by tribal authorities, while emphasizing the need for future agreements that benefit all 11 federally recognized tribes.
The legislation updates the definition of a 'bet' to allow wagers made via mobile or electronic devices within the state, as long as these transactions are processed through servers located on tribal lands and adhere to existing gaming compacts. Currently, sports betting in Wisconsin is restricted to in-person bets at tribal casinos.
For the new online betting to take effect, gaming compacts between the state and individual tribes must be renegotiated. These agreements, which date back to the early 1990s, grant tribes exclusive rights to conduct certain types of gambling. Any changes to these compacts will also require approval from the federal Bureau of Indian Affairs. A ruling by the state Supreme Court in 2006 confirmed that tribes can expand their gaming offerings through renegotiations.
Governor Evers expressed some reservations about the legislation but ultimately endorsed it, highlighting the importance of respecting tribal sovereignty. He stated that this law should be viewed as a starting point for ongoing discussions, remarking, 'This legislation is the beginning of a conversation, not the end of one. The real work begins today.'
The governor cautioned against creating disparities among tribes, indicating he would not support any model that disproportionately benefits some tribes while leaving others with minimal gains. Instead, he has advocated for a collaborative approach, including joint ventures where tribes can collectively share risks and rewards.
Tribal leaders were instrumental in pushing for the bill's approval, with all 11 tribes expressing their support in a letter to the governor. A majority of these tribes previously indicated that the proposal aligns with their shared goal of enhancing sovereignty, maintaining control over gaming operations, and ensuring that mobile betting serves all tribes.
Chairman Brooks Boyd of the Forest County Potawatomi Community described the legislation as a crucial advancement for both tribal nations and the state, stating, 'This bipartisan legislation respects tribal sovereignty and ensures that the economic benefits of mobile sports betting remain in Wisconsin.'
The law introduces a 'hub and spoke' model for online betting, allowing wagers to be placed throughout the state while being processed through centralized systems on tribal lands. This structure is similar to a recent model supported by federal courts that is utilized by the Seminole Nation in Florida.
However, the expansion has faced opposition from national sportsbook operators like DraftKings and FanDuel, as well as the Wisconsin Institute for Law & Liberty, which has raised constitutional issues. A poll conducted by Marquette Law School revealed that 64% of Wisconsin voters oppose the legalization of online sports betting, including 61% of Republicans, 66% of Democrats, and 74% of independents.
Industry stakeholders have pointed to the federal Indian Regulatory Gaming Act, which mandates that a significant portion of gross gaming revenue must be allocated to tribes, as a limiting factor for commercial operators in a market the size of Wisconsin.
Revenue generated through tribal compacts is partially shared with the state and is typically directed toward economic development, local services, and tourism initiatives in tribal areas.
Governor Evers emphasized that decisions regarding the mobile betting structure should extend beyond mere financial implications, urging stakeholders to consider broader principles such as fairness and cooperation. He reiterated his commitment to rejecting arrangements that exacerbate inequalities, concluding that the state cannot afford to leave any tribal nations behind.