(The Center Square) – The current structure where Wisconsin tribes would receive 60% of the gross revenue from mobile sports wagering under the Indian Gaming Regulatory Act would be too high of a cost for top national brands.
A representative of the Sports Betting Alliance told a Senate committee Tuesday that DraftKings, FanDuel, BetMGM, Fanatics and Bet365 the plan to expand mobile sports wagering statewide under the proposed bill would be too much for the organizations to operate in Wisconsin.
Counsel Damon Stewart, representing SBA, said that he didn’t know which number would work for the sportsbooks but that the bill seemed like a “bit of a rush.” SBA is supportive of Wisconsin expanding its mobile gaming statewide but “we don’t think this vehicle gets us there.”
The proposal would create a technical exception to the term “bet” in Wisconsin law by not counting mobile sports wagers that were conducted through a sportsbook with servers located on tribal land as one of those banned “bets.”
Wisconsin Sen. Howard Marklein, R-Spring Green, said that the bill would allow for the exception, then the state would have to renegotiate gaming compacts that would then be sent to the Bureau of Indian Affairs for approval.
Jeff Crawford, attorney general for the Forest County Potawatomi Community, noted that the Milwaukee Brewers, Milwaukee Bucks and Green Bay Packers are supportive of Wisconsin expanding its tribe-based mobile sports wagering statewide.
The expansion would mean that sports wagering in the state that currently is done through offshore or sweepstakes operators could move into the regulated space, which would create consumer and operator protections.
Crawford said that estimates show there were $150 million in offshore or illegal sports wagers placed by Wisconsin consumers in 2018, that exploded to $1 billion worth in 2024 and it is projected to only expand from there.
Rep. Tyler August, R-Walworth, noted that many of those in his district drive across the state line to Illinois to place wagers with legal sports wagering operators there and then drive back home. He noted that the sponsors have not spoken with Attorney General Josh Kaul on the bill.
“It’s good for the tribes,” August said. “It’s good for the consumers.”
Crawford took exception to the SBA “implying that we do not have the capability of operating a statewide sportsbook.”
Stewart said that the hub and spoke model of mobile sports wagering Wisconsin would use without national sportsbooks involved would be similar to how Arkansas and Florida operates, which he believes is not the best model for consumers.
“Let us have the chance to work with the tribes,” Stewart said. “We want to tether with them.
“Let’s do this right, let’s do this legally.”
If not, Stewart said that consumers will continue to use the illegal sports wagering sites they currently use or they will go to Illinois to use national brands.
“Online sports betting is a low margin, capital-intensive business,” Stewart said. “It’s simply not economically feasible for a commercial operator to hand over 60% to the in-state entity just for the right to operate in the state. That is why Wisconsin adults would not be able to use the national brands they see advertised on national TV every day.”
