Wisconsin lawmakers have approved legislation to legalize online sports betting. The bill was enrolled on Wednesday, meaning it only needs Governor Tony Evers’ signature to become law.
If approved by Evers, Wisconsin’s tribes would have exclusive rights to launch online platforms. AB601 will amend Wisconsin law to allow residents to place online bets on mobile or other electronic devices, provided the server is physically located on tribal lands.
Eight of Wisconsin’s 11 tribes sent a letter to Evers urging him to sign off on the legislation. They claim that offering online betting “sets up to further strengthen our tribal economies and the state of Wisconsin.”
The letter stated: “Our nations share a collective mission of working to strengthen tribal sovereignty, maintaining the tribal nations’ role as the primary operators and regulators of gaming in Wisconsin, and accomplishing a framework with mobile sports betting that benefits all Wisconsin tribes.”
A spokeswoman for the Oneida Nation, which did not sign the letter, said the tribe is “neutral” and has not taken a position on the proposal. The other two tribes, the Lac du Flambeau Band of Lake Superior Chippewa Indians and the Menominee Indian Tribe, did not comment.
Wisconsin Residents Already Gambling Online
The Senate passed the bill in a 21-12 vote last week. Proponents argued that online betting is already occurring in the state and that legalization would provide protection for users.
Wisconsin residents can gamble on almost all sporting events, including esports, at prediction markets. Esports is growing in the state, with 28 colleges now offering esports programs.
Currently, the state’s retail sportsbooks do not offer esports betting, but the launch of online betting could expand the sports on offer.
With limited legal options, many users access offshore betting platforms using VPNs or other methods. Nicole Boyd, chair of the Red Cliff Band of Lake Superior Chippewa Indians, said she believes “Wisconsin residents spend hundreds of millions of dollars every year on unlawful and unregulated sports betting platforms”.
Sen. Kristin Dassler-Alfheim, one of the bill’s co-sponsors, said: “If we’re going to have online gambling, which we are. It already exists on the edges, behind closed doors. It’s already there. And it’s already being abused by some and that’s not going to change. I would rather us put as many parameters around it as we can to take care of our consumers and keep the revenue.”
Opponents Warn Against Tribal Exclusivity
Opponents warned that the terms of legalization are too heavily in favor of the tribes. Tribes would receive 60% of gross revenue from online wagers.
The Sports Betting Alliance (SBA), which consists of the country’s leading sportsbooks, spoke out against this split at a hearing last year.
SBA-affiliated groups spent over $262,000 lobbying against the bill, arguing the conditions make it economically unfeasible for its members.
Despite this, President Joe Maloney said, “We work through tribal compacts and with tribes in certain states, and we’re happy to build upon that record in the state of Wisconsin.”
The bill passed the Senate last week in a 21-12 vote. Sen. Steve Nass called the vote a “dirty deal” and accused proponents of a quid pro quo. Nass stated, “As the campaigns proceed, follow the money.”
A bill in neighboring Minnesota has also been introduced to launch online sports betting. Unlike in Wisconsin, this would not come with tribal exclusivity.