The Wisconsin Legislature is currently evaluating a proposal that would enable 11 federally recognized tribes to initiate online gambling within the state's jurisdiction using a "hub-and-spoke" framework.
This model is attracting interest as both tribes and states look for methods to manage the swift growth of online gambling platforms that function under federal regulations, as reported by ICT News.
Victor Rocha, the Conference Chair for the Indian Gaming Association and a member of the Pechanga Band of Indians, pointed out that some online betting platforms take advantage of regulatory gaps to evade both state control and tribal gaming agreements.
“Prediction markets are a loophole that’s been exploited by Wall Street and the tech bros to circumvent states’ rights and tribal rights,” Rocha stated. “It’s been the industry’s ambition for a long time to find a way for federal sports gambling or gambling across all 50 states.”
Platforms that facilitate prediction markets enable users to place bets on actual events, such as elections. These platforms categorize their offerings as “event contracts,” which subjects them to federal oversight by the Commodity Futures Trading Commission instead of state gambling laws.
Due to this classification, these platforms can legally operate in all 50 states, even in areas where conventional gambling is prohibited. “It’s about capitalizing on the current situation, and it infringes upon states' rights and tribal sovereignty,” Rocha added.
Several states, including Nevada and Utah, have contested these platforms, although many regions across the country have yet to formulate regulatory strategies.
Proponents argue that the hub-and-spoke model could provide a framework that maintains online gaming under tribal governance. This model was first adopted in a 2021 gaming agreement between the Seminole Tribe of Florida and the state of Florida.
In this arrangement, servers hosting online gaming platforms are situated on tribal lands—the “hub.” Players can place bets via mobile devices—the “spokes”—as long as they are physically present within the state.
Wisconsin lawmakers are now exploring a similar strategy. On February 19, the Wisconsin Assembly passed Assembly Bill 601, which would permit the state’s 11 federally recognized tribes to establish their own hub-and-spoke system for online gambling.
“[This is] one of the best things you can do to curb illegal gaming and offshore gaming,” remarked Dominic Ortiz, CEO of the Potawatomi Casino in Milwaukee and a strong advocate for the legislation. “We’re combating predictions on a national level. The NGIC [National Indian Gaming Commission], IGA, and everyone involved are opposing predictions and their capacity to offer sports betting, which we believe violates state and tribal compacts and sovereignty.”
The Seminole-Florida model allows the tribe to broaden gaming opportunities throughout their state, including mobile sports betting. Ortiz described the system as “one of the most significant moves in Indian Country to assert sovereignty collectively.”
If Wisconsin enacts this legislation, the state’s 11 tribes would secure exclusive rights to online gaming, managing servers and ensuring that the benefits remain within tribal communities.
“The SBA alliance, the Sports Betting Alliance, has somewhat controlled the narratives,” Ortiz noted. “Now that we have a hub-and-spoke model, we can collaborate within the state and form an alliance among the tribes to unify our sovereignty.”
Tribal gaming has historically been a vital source of income and employment in Wisconsin. The state’s 26 tribally owned casinos have generated hundreds of millions in tax revenue and provided tens of thousands of jobs. Locally, these funds support various initiatives, including language revitalization, elder care, and natural resource conservation.
The Potawatomi Casino, owned by the Forest County Potawatomi, was the first off-reservation casino in the United States, opening in 1991 to help alleviate poverty among tribal members. More than 70% of the casino’s workforce comprises people of color, according to the casino's reports.