Wisconsin Mobile Betting Bill to Learn Its Fate This Week

The fate of online sports betting in the Badger State will finally be decided this week.

Wisconsin Governor Tony Evers has promised to take action on AB 601 this week, which would create a mobile sports betting market. While he has supported expanding sports betting in the past, the state’s top lawmaker said he needed time to confer with tribal leaders before deciding. 

While there is a general expectation that he will sign AB 601 into law, the lack of details or commitment has some of its supporters nervous. 

Evers will have the option to approve, veto, or take no action on the bill.

Evers Stalling Adds Dramatic Twist to Effort

The Wisconsin Governor’s earlier statement suggested he would sign AB 601 without issue. 

The bill had the full support of the state’s tribal gaming groups, some of which sent representatives to the Assembly in Madison to push for its approval. While some smaller tribes feel left out of the proposed market, the majority have been willing to support the effort.

As a result, many people were surprised when Evers asked for time to review the topic with the state’s tribes. While we know some tribes oppose the bill, others fear Evers may have other reservations. Those concerns have only grown as the Governor has remained silent on his stance.

Prediction Markets Force Issue in Wisconsin

Wisconsin lawmakers have been battling over mobile betting for years now, but little progress has been made. However, the emergence of sports prediction markets has been changing things. 

There are several sports prediction platforms currently operating in Wisconsin. These operators allow residents aged 18 and older to legally wager on sports through a legal loophole in the Commodity Exchange Act. That allows the industry to avoid state regulations and taxation, leading operators to keep more of their profits.

The already-present threat of prediction markets has led many lawmakers to support mobile betting, allowing AB 601 to pass suddenly. However, others feared that the pressure was forcing through a bill with many flaws. 

Proposed Market Could Cost Wisconsin Money

One reason for Wisconsin’s inability to legalize mobile betting has been the Governor’s insistence on tribal approval. That has allowed groups to flex their power and reject any proposals that don’t maximize their potential profits from the industry. As a result, AB 601 is now a single signature away from becoming law.

As many opponents have pointed out, creating a market that excludes commercial operators can have costly consequences. If the major sportsbooks don’t apply for licenses, it would force tribes to create their own app or partner with smaller, unproven sportsbooks. 

We have seen enough since the overturn of PASPA to know that bettors won’t use sub-standard platforms. That is even more true, not that sports prediction markets are widely available. That has led to fears that the tribal-centric market proposed in the bill could end up costing the state money in the long run.