MADISON, Wis. (AP) As sports fans wager billions of dollars on the NCAA basketball tournaments, Wisconsin lawmakers are advancing an expanded sports betting plan that could generate substantial revenue for the state in the future. A measure received final approval on Tuesday, allowing the state's tribal gambling sites to offer online sports betting accessible to residents throughout Wisconsin. However, the bill requires the signature of Democratic Governor Tony Evers, and its enactment hinges on negotiations with American Indian tribes responsible for the sports betting operations.
Sports betting has proliferated across the United States, expanding from just one state, Nevada, to 39 states and Washington, D.C., following the U.S. Supreme Court's decision in 2018. If Evers endorses the expansion, Wisconsin would become the 32nd state to permit online sports wagering, which is the preferred method for many bettors. In 2022 alone, state-regulated sportsbooks across the country handled nearly $167 billion in bets, yielding revenues of nearly $17 billion after payouts, marking a significant increase of almost 23% from the previous year.
In Wisconsin, gambling is confined to tribal lands under exclusive agreements between tribes and the state. Currently, sports bets can only be placed at specific tribal casinos, and online sports betting is prohibited. According to the state's tribal compacts, a portion of the income generated by tribal gambling is returned to Wisconsin; for instance, in 2024, tribes contributed just over $66 million from their casino revenues.
The proposed legislation in Wisconsin mirrors a model implemented in Florida, allowing online sports betting only if the betting infrastructure, such as computer servers, is situated on tribal land within the state. Proponents of the measure, including several Wisconsin tribes and the Milwaukee Brewers, argue that many residents currently place bets with offshore sportsbooks or travel to other states, such as neighboring Illinois, where sports betting is legal. Assembly Speaker Robin Vos, a Republican, has expressed his opposition to online gambling but acknowledges that it is already occurring and believes Wisconsin residents should have some form of regulation over it.
However, the legislation has faced criticism from the Sports Betting Alliance, which represents major operations like FanDuel and DraftKings. They contend that partnering with Wisconsin tribes is financially untenable due to federal regulations requiring that at least 60% of gambling revenue must revert to the tribes. Consequently, they advocate for a state constitutional amendment that would open sports betting to all operators.
Curiously, Democratic Governor Evers remains uncertain about his support for the measure. Although he initially indicated approval contingent upon tribal consultation and support, he has since voiced concerns over the fact that not all of the state's 11 tribes are in favor of the proposal. Evers' spokesperson did not respond to inquiries regarding these developments.
If Evers ultimately approves the legislation, Wisconsin residents may still face delays in accessing online betting via smartphones and computers, as establishing new sports betting infrastructures can often take months. For example, North Carolina's expanded sports betting laws, signed in June 2023, did not result in online betting availability until March 2024. Similarly, Missouri's sports betting, approved in November 2024, did not launch until December, yielding only $659,000 in state tax revenue within the initial two months, despite sportsbooks handling $928 million in bets.
In some contexts, states have sought to increase their take from sports betting revenues post-legalization. States such as Illinois and Louisiana have adjusted their laws to restructure taxes or raise tax rates on sports bets significantly, thereby increasing funding for various programs. For instance, Illinois imposed additional fees on every placed bet, while Louisiana allocated a portion of gambling tax revenue to support college athletics.
Meanwhile, betting on collegiate athletes' performance has sparked controversy, primarily due to recent scandals involving alleged rigging of player performances. The NCAA has since encouraged states to impose restrictions on bets involving college athletes, with several states, including Louisiana and Ohio, banning individual proposition bets on collegiate players. Some states allow these bets under certain conditions, while others have more comprehensive restrictions in place.
