Wisconsin Tribes Ask Court to Toss Online Betting Lawsuit

The battle over online sports betting in Wisconsin isn’t over quite yet.

This week, eight of the state’s tribes joined to ask a court to dismiss a lawsuit seeking to block online sports betting in the state. The Brown County Taxpayers Association filed the lawsuit, alleging that Act 247, which allows the state to negotiate a gaming compact to launch online wagering, breaks the state’s own constitution.

Although Act 247 is now law, tribes and the state have not yet announced agreements on the market’s framework and launch date. 

IGRA vs. Wisconsin’s Constitution

In the lawsuit, the plaintiff argues that a 33-year-old amendment to the Wisconsin Constitution expressly prohibits expanding gambling in any form. As a result, the state would need a new amendment to launch online sports betting. This would require more votes from lawmakers and the public. 

While the amendment is clear, the tribes and the state are arguing that the Indian Gaming Regulatory Act covers Act 247. Because the law only authorizes the state to negotiate a gaming compact, it would expand tribal gambling, which IGRA protects.

This mirrors a battle that played out in Florida several years ago, when courts ruled that the state’s expansion of online sports betting was protected under IGRA. That sets a precedent that should help Wisconsin tribes, but it doesn’t guarantee the lawsuit will be dismissed outright.

Anger Over Tribal-Centric Deal

Wisconsin has been attempting to legalize online sports betting for years, but has failed over one key issue. 

Governor Tony Evers and many of his fellow Democrats prioritized the state's gaming tribes when drafting bills to expand sports betting. Those tribes refused to accept any proposals that would let commercial operators launch and keep most of the profits. 

This led to Act 247, which requires commercial operators to give over half their profits to a tribal partner. 

Opponents argued this would ultimately hurt both bettors and the state. They believed platforms like DraftKings and FanDuel wouldn’t invest in the tribal-run market. That would force tribes to create and operate their own mobile platforms, which they don’t have experience with.

As a result, bettors could choose not to engage with a regulated market and instead use offshore sportsbooks and sports prediction markets. 

When Will Online Betting Launch?

This is the question on the minds of many Wisconsinites, but the answer is far from easy.

Governor Evers has been a big advocate for Act 247 and promised to work hard to finalize an agreement with the tribes and set a launch date. However, the lawsuit threatens to delay that process, pushing both sides to focus on a legal defense of the new law.

In addition, Evers will leave office after November’s midterm elections. If Republicans take office, it could delay or intentionally cut off negotiations with tribes. This would put Wisconsin back to square one and leave tribes without their top advocate.