Online Sports Betting in Wisconsin Inches Closer to Becoming Reality
Online legal sports betting in Wisconsin is getting closer to launch following recent talks between Gov. Tony Evers and the state's 11 Native American tribes.
Recently, the Milwaukee Journal Sentinel reported that Evers and the tribes met in the state’s capital, Madison, to discuss the details of online sports gambling. This comes after Evers signed a bill into law legalizing sports betting in the Badger State.
A spokesperson for Evers told the Milwaukee Journal Sentinel that there will be lengthy conversations between the governor and the tribes. New compacts will be hammered out between the two parties, and they must be approved by the Bureau of Indian Affairs.
Following the Sunshine State
In the bill that Evers signed, Wisconsin lawmakers altered the definition of a wager to allow Wisconsin residents to place bets on their mobile devices. However, Wisconsin is following the Florida online sports betting model, as the servers that take bets must be located on tribal land within the state.
The bill, AB 601, which was introduced by Rep. Tyler Austin, was originally pulled without a vote late last year. However, it returned to the state House earlier this year, with many discussions about online sports gambling. At the last minute, bipartisan lawmakers joined in the effort to pass the bill, which happened late in the chamber session.
Will the big brands be there?
The current model in discussion is being opposed by the Sports Betting Alliance (SBA). The alliance comprises the largest U.S. sportsbooks, including bet365, BetMGM, DraftKings, Fanatics, and FanDuel.
According to the Regulatory Gaming Act, 60% of online sports betting revenue must be allocated to Native American tribes in the state. The SBA has argued that, because of the 60% revenue share with the tribes, the cost of offering their sportsbook products in the state would be too high and therefore would not make good business sense.
Getting all of the tribes to line up
Before the legislative session passed the online gambling bill, Evers supported it. However, once it passed, he had reservations because not all 11 tribes in the state supported legal online sports gambling.
The governor suggested that all of the state’s tribes should benefit from a potential industry launch. He wrote in a press release, “What I will not accept is a plan that fractures this opportunity into unequal pieces, allowing some tribes to reap great benefits while leaving only crumbs for others.
"An approach that exacerbates long-standing inequalities among Tribal Nations is not good for Wisconsinites or Wisconsin. I will not entertain it as governor.”
Eventually, all 11 tribes sent a letter of support for legal online sports betting. In recent meetings, Evers stated that his main goal is a joint venture between the state and the tribes, in which both would benefit from legal online sports betting.
