Will Sportsbooks Look to Enter Wisconsin’s Mobile Market

The way has been paved for online sports betting in Wisconsin, but many questions around its future remain.

One of the biggest is which, if any, commercial sportsbooks will join the upcoming market. While the law will allow operators to partner with Wisconsin’s gaming tribes, it requires them to hand over 60% of their betting revenue. Lobby groups for the industry begged lawmakers to remove this stipulation, warning sportsbooks would avoid launching in the upcoming market.

With Wisconsin Governor Tony Evers officially signing off on the bill to legalize mobile sports betting, will sportsbooks really skip this promising new market?

Wisconsin Gambles on Florida’s Model

After years of legislative deadlock, Wisconsin finally legalized sports betting, thanks to Florida. The Sunshine State established a then-controversial hub-and-spoke model that handed the Seminole Tribe full control of its online market. This only requires an update to the state’s gaming compact, avoiding the additional requirements that a constitutional change would impose.

While Florida has had success with their market, the Seminole Tribe already had an industry-leading online sportsbook (Hard Rock Bet) active in the US. That made the transition easy and allowed bettors to enjoy a world-class experience similar to those in most US betting markets. 

Wisconsin’s tribes don’t have that same experience, which could be a big problem if commercial operators refuse to join the market. We’ve seen poor platforms cost states significant money across the US, with those states quickly learning the importance of commercial operators.

How Will the Big 3 Sportsbooks Respond?

One of the biggest questions for Wisconsin is how DraftKings, Fanatics, and FanDuel will respond. All three operators are part of groups that spoke out against the bill, signaling they would not be interested in giving up over half of their revenue to operate in the state. While operators have previously threatened this in other markets, the current situation is far different.

All three of those sportsbooks also offer sports prediction markets. With the prediction industry exempt from state gambling laws and regulations, the platforms are far cheaper to operate. However, sportsbook operators have limited the new offering to non-betting states, hoping to maintain the relationships needed to keep their sportsbooks successful.

With Wisconsin soon to join the list of “betting states,” we’ll soon see if the three operators are willing to burn bridges to see more profits.

Wisconsin Market Could Be a Sleeping Giant

Wisconsin residents are well-known for their support of local sports teams. The University of Wisconsin, Green Bay Packers, Milwaukee Brewers, and Milwaukee Bucks all have large fan bases and have seen significant success over the last decade. That means there is a large, largely untapped market of new bettors looking to back their favorite teams.

Wisconsin also borders Illinois, where bettors face far higher costs than in the rest of the region. With the massive Chicago metro area sitting just across that border, many bettors there could make the short trip to Wisconsin to place their wagers, especially if they can still use their favorite sportsbooks.