Wisconsin Fighting to Protect Online Sports Betting Deal

Wisconsin may have paved the way for legal online sports betting, but that doesn’t mean a market will launch anytime soon.

The state is currently fighting a lawsuit from Brown County’s Taxpayers’ Association in a Waukesha County court back in August. The group claims that Wisconsin violated its own Constitution by expanding gambling through tribal agreements instead of a public vote.

The state is attempting to fight the lawsuit, which asks the court to at least pause negotiations to launch an online market.

Wisconsin Expands Under IGRA

Governor Tony Evers signed Wisconsin Act 247 in April, paving the way for legal online sports betting.  

Instead of going through the complicated process of changing the state Constitution to legalize the industry, Wisconsin chose to do so through the Indian Gaming Regulatory Act. This federal law allows for tribal gambling in the US and gives states the right to form compacts to expand it. 

This process doesn’t require a public vote, offering a more direct path to legalization.

Once the Act passed, it allowed Evers to begin negotiating a compact that includes online sports betting. 

Concerns Remain Over WA 247

While Wisconsin passed WA 247, it wasn’t an easy process. 

Many current and former lawmakers questioned the proposed framework, which would have given federally recognized tribes in the state control of licenses and most of the profits. As a result, commercial operators have little incentive to enter the market. 

This will likely lead tribes to launch their own platforms, while industry-leading sportsbooks like DraftKings and FanDuel remain unavailable. This is an area where they lack experience, raising concerns about the quality of the platforms that would be available.

There is also concern about the market's competitive status. Tribes work closely together, which could result in fewer competitive promotions and bonuses for bettors. It can also affect the quality of odds available on the platform, leaving less money for bettors.

Wisconsin Has Precedent For Legalization

As large as the opposition to online sports betting in Wisconsin may be, the state has a critical edge in lawsuits challenging it.

That’s because the state’s “hub-and-spoke” model was taken from Florida, which signed a similar deal with the massive Seminole Tribe. This led to years of legal fights that delayed the market's launch, but Florida ultimately won at both the state and federal levels, clearing the way for launch.

While Wisconsin’s situation is different, Florida’s long court battle should help set precedents that will settle the matter much faster.