Wisconsin Opens Talks With Tribes to Launch Mobile Betting

Wisconsin lawmakers finally passed AB 601 to pave the way for online sports betting in April, but one more hurdle remains.

Governor Tony Evers has officially opened talks with 11 local tribes to launch the new market. Since the state legalized the industry under the Indian Gaming Regulatory Act, the legal framework must be agreed upon by both sides before it can launch. Once completed, the rules will need to be signed off on by the Bureau of Indian Affairs. 

While a general framework has been discussed, several questions still loom large.

Revenue Driving Remains Largest Issue

The biggest question about AB 601 and the negotiations with tribes involves the proposed revenue-sharing requirement. The bill currently allows for commercial operators to partner with the state’s 11 gaming tribes to launch mobile sportsbooks. However, IGRA would force them to hand over 60% of sportsbook profits to their tribal partners.

When AB 601 was still under consideration, the Sports Betting Alliance warned that operators would not be interested in entering the market. The revenue sharing would make it cut into potential profits, giving them little reason to invest in the state.

The bill passed despite this concern, but there is reason to believe Evers will want to address it during negotiations.

How United Are the Tribes?

Before signing off on mobile betting, Evers went back to talk with tribal leaders. He made it clear in a statement to PBS Wisconsin that he would not allow inequity between the 11 tribes.

The real work begins today. Each of the 11 Tribes must now work diligently-and together-to shape the future of sports betting in Wisconsin. … An approach that exacerbates long-standing inequalities among Tribal Nations is not good for Wisconsinites or Wisconsin. I will not entertain it as governor.

That support will once again be tested during negotiations. The fear is that the larger tribes could circumvent revenue sharing, enticing industry-leading sportsbooks to the state. Smaller tribes would be stuck operating their own platforms, making it nearly impossible to compete. 

This will be an issue during negotiations and could potentially lead to major delays as the tribes and Evers search for a solution. 

State, Tribes Eager to Launch

The good news for Wisconsin bettors is that both the state and tribes appear eager to launch mobile sports betting. Evers had always insisted that he would support any measure approved by the tribes, and he went to Madison earlier this year to speak in support of legalization.

Wisconsin lawmakers were unable to pass bills to legalize online sports betting for years, but that has changed over the last few months. Several prominent opponents acknowledged that the industry was already available in the state via offshore sportsbooks and prediction markets. As a result, several dropped their opposition, leading to AB 601 finally passing in April.