Wisconsin Online Sports Betting and the Hub and Spoke Model

• Wisconsin lawmakers are mulling legislation to expand sports betting to the internet
• Wisconsin is home to only tribal casinos
• Sports betting is banned in neighbouring Minnesota

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Currently, Wisconsin’s sports betting is limited to in-person wagering at tribal casinos. However, new legislation has been drafted to extend this to online platforms for both professional and college sports.

Wisconsin boasts 25 tribal casinos owned by 11 compacted tribes. The state lacks commercial casinos, resulting in the US Supreme Court’s decision to end the federal ban on sports gambling leaving Wisconsin’s market primarily in tribal control.

The requirement for in-person betting has significantly constrained the potential benefits of sports gambling. In jurisdictions where both retail and mobile sports betting are permitted, a staggering 90{6993caa5fb1aab1de46f5b43a835411dda8badf3aa9c6b754938f587e1f52746} to 95{6993caa5fb1aab1de46f5b43a835411dda8badf3aa9c6b754938f587e1f52746} of bets and money wagered are processed online.

Wisconsin Following Florida’s Lead

This week, a bipartisan group of lawmakers in Madison, backed by local Native American communities, has put together a proposal with the help of the Legislative Reference Bureau. The suggested legislation takes inspiration from Florida’s model for expanding tribal sports betting.

Florida’s push for online sports betting, in partnership with the Seminole Tribe, faced legal challenges. However, the US Supreme Court ultimately chose not to examine the case, affirming the decision that such operations do not infringe upon the Indian Gaming Regulatory Act.

This bill excludes from the definition of ‘bet’ an event or sports wager made by an individual physically located in this state using a mobile or other electronic device if the server used is on American Indian tribal lands and if the wager is made under a compact between the tribe and the state as per the federal Indian Gaming Regulatory Act.

This initiative has garnered support from prominent political figures, including Assembly Majority Leader Tyler August (R-Walworth) and Assembly Minority Leader Kalan Haywood (D-Milwaukee), along with Senators Howard Marklein (R-Spring Green) and Kristin Dassler-Alfheim (D-Appleton).

Wisconsin’s legislative session for 2025 is set to conclude at the end of the year.

Big Opportunity

The legislative draft does not clarify if Wisconsin would seek a share of the online gaming revenue similar to Florida’s 10{6993caa5fb1aab1de46f5b43a835411dda8badf3aa9c6b754938f587e1f52746}. It’s anticipated that substantial revenue could be generated if Wisconsin legalises online sports betting, particularly since its neighbour Minnesota currently has no legal sports betting options.

With a border stretching nearly 300 miles, Minnesota’s major cities, Minneapolis and St. Paul, with a combined population of around 2.7 million, are close to Wisconsin. This makes it a prime opportunity for Wisconsin to capture potential bettors.