(The Center Square) – Wisconsin would have received an estimated more than $43 million in annual tax revenue from sports wagering if it had created an open marketplace for sports wagering, according to estimates from the Tax Foundation earlier this year.
The estimates were based upon a number of factors within the state including the population of more than 2 million between the ages of 18 and 144, the $77,488 median household income and the attendance figures at the Green Bay Packers, Milwaukee Brewers, Milwaukee Bucks and Wisconsin Badgers home games, which showed a relatively higher interest in sports than other states.
The estimate was based upon a 10% tax on a projected $432 million in annual gross gaming revenue.
Instead, state lawmakers opted to create a hub-and-spoke model similar to Florida where the state’s 11 tribes operate mobile sports wagering in the state through servers on tribal lands.
Gov. Tony Evers signed the sports wagering bill into law April 9 and now must negotiate gaming pacts with the tribes, which then must be approved by the federal government.
The Center Square was unable to receive an update on those negotiations from Evers’ office before publication.
“I have heard from each of the 11 affected Tribes that this bill offers an opportunity for their governments and for their people to improve the quality of life, health, and stability of their communities,” Evers wrote in a statement after signing the bill. “As governor, I am responsible for ensuring the state of Wisconsin upholds Tribal treaty rights and appropriately respects Tribal sovereignty in Wisconsin.
“Most importantly, this means respecting every Tribal Nation’s right to do what is best for its people. I do so today as I always promised I would, but I am not without reservations about signing this bill.”
Wisconsin currently receives payments that are a portion of the net win from tribal casinos but does not separately report sports wagering payments.
In 2024, the state received more than $66 million in shared revenue payments with nearly $66 million in 2023 and nearly $57 million in 2022. An open sports wagering market would have increased the gambling collections in the state to nearly $110 million, using the Tax Foundation estimates.
The Wisconsin sports wagering law received opposition from large national sports wagering companies like DraftKings, FanDuel, BetMGM, Fanatics and Bet365 through the Sports Betting Alliance because those groups believe the agreement will keep them out of Wisconsin sports wagering in favor of the tribes and partnering with the tribes would result in deals that would not cover the large sportsbook’s expenses.
“Wisconsin voters definitely want to have a say in this policy and they haven’t gotten that opportunity,” SBA President/CEO Joe Maloney said previously.
During committee discussion on the bill, Rep. Robert Wittke, R-Caledonia, pointed testimony from Sports Betting Alliance Counsel Damon Stewart, who said that a requirement that 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 such as DraftKings, FanDuel, BetMGM, Fanatics and Bet365.
“I think our citizens in Wisconsin are better served by keeping this new platform within our current gambling structure,” Wittke said.
