Wisconsin Governor Signs Online Sports Betting Bill Into Law

• Gov. Tony Evers (D) today signed AB 601 into law, giving Wisconsin tribes control over the state’s online sports betting market
• Gov. Evers said the bill will benefit the state’s tribes, but he has “concerns” about the work that lies ahead
• It remains to be seen if major sports betting operators will enter into the Wisconsin market due to its revenue framework

---

Wisconsin Gov. Tony Evers (D) has signed a bill to legalize Wisconsin online sports betting for state tribes.

Gov. Evers signed Rep. Tyler August’s bill, AB 601, into law, which will allow the 11 Wisconsin tribes to amend their gaming compacts and offer online sports betting in the state. While the bill is now law, Gov. Evers said the tribes must work together to “shape the future of sports betting in Wisconsin.”

“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,” he said in a released statement.

Equitable Sports Betting Model Moving Forward

In the weeks leading up to his decision, Gov. Evers said he would speak with all 11 tribes regarding the legislation. He came to the determination through his discussions with tribal leaders that the legislation will benefit and respect the sovereignty of Wisconsin tribes.

This bill means a broader collection of Tribal Nations in Wisconsin could reap the benefits of increased gaming revenues. Statewide mobile events or sports wagering could present an opportunity to help level the playing field to ensure every Tribal Nation in Wisconsin can benefit from the increased revenues. This is important. When each of the Tribal Nations in Wisconsin thrive our surrounding communities and our state as a whole thrive, too. This bill also represents an opportunity for revenue paid into the state to support mental health programs and to combat the opioid crisis, two issues that I know plague both Tribal Nations and communities across our state,” Gov. Evers said.

The approved bill allows Wisconsin tribes to offer online sports betting through a “hub-and-spoke system,” which is is the same methodology used by the Seminole Tribe to legalize online sports betting in Florida. The tribe began offering online sports betting in the state in 2021, arguing that since its servers were located on its tribal land, any bet placed in the state and processed through the device were technically made on tribal land.

As long as a Wisconsin tribe has an approved gaming compact with the U.S. Department of the Interior that allows sports betting, and processes sports bets through a server on its tribal land, online sports betting will be legal.

Tribes will have to renegotiate their gaming compacts to offer online sports betting through their own platforms or through partnerships with sports betting companies. The renegotiated compacts will have to be approved by the federal government.

All Tribes Must Benefit

Discussions among Wisconsin tribes have already started, Gov. Evers said, and this bill provides an opportunity to avoid mistakes of past gaming compacts that left some tribes and their members in poverty while allowing others to benefit.

“I share the same goal as many of the Tribal Nations-to develop and embrace a model that each Tribal Nation can participate in with dignity and pride. I will do everything in my power to support models that address disparities rather than exacerbate them and reject models that leave some Nations with little more than they have now while others prosper and thrive,” he said.

Gov. Evers said it his expectation that each nation will have the opportunity to benefit equally from the Wisconsin online sports betting model moving forward.

Who Else May Work in Wisconsin?

The tribes will lead the Wisconsin online sports betting market, but it remains to be seen if there will be room for any major sports betting operators.

The bill’s revenue framework may not make Wisconsin an attractive market for the country’s largest sports betting operators. Any sports betting company operating in Wisconsin will be required to provide 60% of their revenues to their tribal partners.

During a public hearing for the bill this past fall, Damon Stewart, counsel for the Sports Betting Alliance, reported if Wisconsin legalizes online sports betting through the Indian Gaming Regulatory Act (IGRA) and the proposed hub-and-spoke model, the market will not be economically viable for operators to enter.

Stewart, speaking on behalf of the Sports Betting Alliance, said major sports betting operators likely would not participate in Wisconsin’s sports betting market if required to provide the majority of revenues to their tribal partners.

However, in late February FanDuel and DraftKings both agreed to casino partnerships in Arkansas which will allow their entry into the state. Arkansas has a similar revenue framework as Wisconsin, which requires operators to provide 51% of their revenues to their casino partners. Their willingness to enter into Arkansas may also eventually lead to their entry into Wisconsin as well, which should prove to be a larger sports betting market than the Natural State.

The Arkansas Racing & Gaming Commission approved both FanDuel and DraftKings applications for sports betting vendor licenses, allowing FanDuel to partner with Oaklawn Racing Casino Resort and DraftKings with Southland Casino.

Both companies will act as vendors for the casinos and offer online sports betting on their behalf.