Wisconsin will find out the fate of its online sports betting outlook no later than Thursday, as Gov. Tony Evers (D) mulls a crucial decision for the state’s future.
Key Takeaways
- Wisconsin launched retail sports betting in November 2021.
- Sportsbook companies would be allowed to partner with tribal casinos through a hub-and-spoke model.
- Betting companies would need to share 60% of their profits with their tribal affiliates.
Evers has a Thursday deadline to sign, veto, or refuse action on AB 601. Declining to take action would result in the bill defaulting into law.
Wisconsin maintains a six-day period for the governor to decide on the fate of bills once they are presented. Evers received the bill April 2.
The bill was approved in the state House and Senate before it advanced to the governor’s desk. It was also publicly supported by eight of Wisconsin’s 11 federally recognized tribes, whose approval was expressed in a joint letter.
Under the terms of the proposal, Wisconsin would join the majority of American states that already allow online sports betting. Bets would be processed by servers located on tribal lands, ensuring they would remain in control of the state’s gaming operations.
This model would be similar to the “hub-and-spoke” system used in Florida, in which bets are also processed by servers on native ground. However, Wisconsin bettors would be allowed to access a variety of betting platforms, whereas Floridians are restricted to the Seminole Tribe’s Hard Rock Bet brand.
“I really think that this moment is about collective assertion of tribal sovereignty and the preservation of exclusivity that tribes have fought decades to establish,” Sen. Dianne Hesselbein (D), the Senate minority leader, said in March.
The tribes that supported the measure claimed it helps Wisconsin keep up with the times without ignoring or reducing their gaming rights.
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Price to pay
With a maximum of one day left, Evers has yet to indicate how he will decide on the bill. He previously noted his ruling would hinge on conversations with tribal nations, stakeholders, and associates.
The only way to stop the bill from becoming law would be to use his veto power. Even then, legislators could vote to override the veto if they produce a two-thirds majority in both chambers.
Assuming AB 601 is approved, the Wisconsin sports betting industry could open its doors to major online betting brands such as FanDuel and DraftKings. However, the bill outlines a system in which sports betting partners would need to share 60% of their revenue with their tribal partner. There would be no way to avoid the revenue sharing since all bets would be required to be processed by servers on tribal land.
Damon Stewart, counsel for the Sports Betting Alliance, previously stated the hub-and-spoke model would not be economically attractive for possible partners. He also said there were “dubious legal underpinnings” with the model, suggesting it would likely operate in violation of the state Constitution.
“We recognize the tribes’ primary role in all of this,” he previously said. “We want to tether with them, which gives them a leadership role. We want to find a way to work with them, combined with a way to make this appropriately done for everybody.”
Future of Wisconsin sports betting
Despite objections to the 60% proposal for revenue sharing, FanDuel and DraftKings both launched online sports betting in Arkansas last month.
In doing so, they agreed to split 51% of their revenue with their casino partners, suggesting they could be more agreeable with Wisconsin’s approach than previously believed.
Tribes in Wisconsin would have to renegotiate their gaming compacts, which would then require federal approval, in the event that they partner with sports betting companies.
