Lawmakers in Wisconsin are mulling a proposal to expand the state’s online sports betting market, which is effectively limited to locations offering retail betting services.
The bill would mirror the set-up in Florida, where online sports betting is permitted if servers are located on tribal land.
Key Takeaways
- Lawmakers said that the agreement would need to be approved by the U.S. Department of Interior.
- Estimates suggest the bill could help prevent hundreds of millions of wagers from being placed illegally.
The bill is supported by several members of the Wisconsin House of Representatives. One of their primary focuses is retaining the plethora of money that is lost to illegal gambling outfits, as well as improving the safety of local players.
“This legislation is an important step to bring Wisconsin in alignment with the majority of the country in regards to sports wagering,” Kalan Haywood (D-Milwaukee) said in a statement, according to the Washington Examiner. “For too long, illegal, offshore entities have profited from consumers through unregulated sports wagering, without generating revenue for local economies.”
Sports betting’s increasing popularity has made it a common sight for any sports fans, with targeted gambling content during television shows and commercials, online promotions, and live odds reads.
Thirty-nine states have also legalized sports betting in the seven years since a federal court opened the door to national legalization by repealing the PAPSA decision previously used to outlaw the pastime.
“This is the first step in bringing Wisconsin in alignment with the large majority of other states who already offer mobile sports wagering,” said Forest County Potawatomi Community Chairman Brooks Boyd.
Wisconsin’s strange sports betting system
The Wisconsin sports betting system is peculiar.
Technically, the state still hasn’t legalized sports betting, yet it allows players to submit wagers on a variety of lines.
Gov. Tony Evers (D) entered into a gaming agreement with the Oneida Indian Nation in July 2021 that allowed the tribe to offer retail sports betting at its casinos.
Sports betting went live for the first time just a few months later in November. Wisconsin and New Mexico are still the only states with legal sports betting markets and no sports betting legislation.
Online sports betting is permitted through the state’s arrangement with the tribe, albeit in a limited capacity. Customers using a tribal betting app can select their favorite odds online, but they can not submit them if they are not at the Oneida’s casinos or various truck stops around the Green Bay area.
If approved, the bill would follow a “hub-and-spoke model” that would allow sportsbooks to operate state-wide, so long as their servers were located on tribal land.
Additional work needed
While the bill aims to expand the state market, it is not the be all and end all for legislation.
“This bill does not authorize gambling on its own; it only is one part in a multi-step process to create the legal framework necessary for Wisconsin to participate in mobile sports wagering under tribal compacts,” the proposal—which was sent to additional lawmakers to field more co-sponsors—read. “Gaming compacts between states and tribes need to be federally approved by the U.S. Department of Interior before going into effect.”
Estimates suggest the bill would help redirect hundreds of millions of wagers lost to illicit operators to legal, in-state platforms.
