Mobile Sports Betting is Officially Coming to Wisconsin

After years of legislative deadlock, mobile sports betting is officially coming to the Badger State.

Wisconsin Governor Tony Evers officially signed AB 601 into law this week. The bill will legalize online betting in the state using a tribal-centric framework. After previously asking for time to consider and speak with tribal leaders, Evers decided he saw enough support to sign off on the bill. 

Wisconsin legalized retail sports betting back in November of 2021, but there are only a handful of sportsbooks around the state.

Details around Wisconsin’s new market

Wisconsin’s new mobile sports betting bill doesn’t legalize sports betting in its state laws, but does change the definition of a mobile bet. The change will mean that the state views mobile betting as occurring at the server location where the wager is processed. As a result, servers hosted on tribal lands would be covered by the Indian Gaming Regulatory Act.

By expanding mobile betting under IGRA, the state is largely handing control to the state’s gaming tribes. While they can partner with commercial operators, the bill requires the majority of revenue to go to the tribes. 

Tribal leaders had been pushing for lawmakers to pass the bill, and were able to convince the Governor of their support for the proposal.

Concerns Around Market Remain

While lawmakers were advancing AB 601, several voices have been loudly opposing the market it will establish.

One of the biggest concerns came from the commercial sports betting industry. Industry lobbyist told lawmakers that the requirement to give 60% of revenue to tribal partners will make the cost of doing business too high. That will lead major sportsbooks to skip Wisconsin and could lead operators like FanDuel and DraftKings to continue offering their sports prediction markets instead.

If operators aren’t willing to launch in Wisconsin, the tribes would be forced to offer their own platforms, which they don’t currently have. If they fail to offer sportsbooks that bettors enjoy, many bettors could turn to prediction markets or offshore sportsbooks to place their wagers.

Wisconsin Takes Big Risk

Lawmakers in the Badger State believed the hub-and-spoke model used in Florida was the clearest path to legalizing mobile betting. It prevented the need for a public vote or additional support in the state legislature, ending years of deadlock.

However, the mobile markets in Florida and Wisconsin have one major difference: experience.

Florida’s mobile market was set up under IGRA and granted the state’s powerful Seminole Tribe full control. The tribe already had its Hard Rock Bet live in several other states, where it kept pace with mid-tier commercial operators. This experience allowed them to launch a proven world-class app, quickly winning over new bettors in the Sunshine State.

Wisconsin’s tribes don’t currently operate mobile sportsbooks. With commercial operators unlikely to join, they may be forced to develop and launch their own. If they do, they risk disappointing bettors, who may leave the regulated market and never return.