Wisconsin legislators have proposed a new bill, LRB-4723/1, aimed at legalizing online sports betting, allowing tribes to operate mobile sports betting and set up servers, following the Florida model. The bill, co-sponsored by Representative Kellan Haywood and three others, requires amendments to the state-tribal gaming agreements and must ultimately be approved by the U.S. Department of the Interior. Supporters claim this move would regulate a multi-billion dollar industry, provide a safer betting experience, and generate revenue, competing against illegal offshore entities. Currently, 9 out of the 11 tribes in the state have included sports betting in their agreements, with shared gambling revenue reaching $66 million in 2024. As the bill progresses, the Ho-Chunk Nation is suing a prediction market operator, accusing it of violating the Indian Gaming Regulatory Act.
Bill Overview and Main Content
Wisconsin legislators have introduced bill number LRB-4723/1, aimed at legalizing online sports betting. The bill proposes amendments to the gaming agreements between the state and the tribes, allowing the establishment of online sports betting servers on tribal lands.
The bill follows the operational model of Florida, aiming to establish a statewide unified online sports betting system.
Proposers and Support
The bill is co-authored by Representative Kellan Haywood, with three other co-sponsors: Representatives Taylor August, Senator Howard Macklin, and Christine Dussler-Alfheim. The legislators have submitted the proposal, hoping to gather more co-sponsors by Wednesday.
Haywood states that this is an important step for the state to align with the majority of states in terms of sports betting.
Current Gambling Landscape and Revenue
Wisconsin has not yet passed any form of sports betting legislation, but Governor Tony Evers reached an agreement with the Oneida Indian Tribe in 2021, allowing the tribe to offer in-person sports betting at their casinos. Currently, 9 out of the 11 tribes in the state have included sports betting in their tribal agreements.
In 2024, the state's shared gambling revenue is projected to be $66 million, including the in-person sports betting portion.
Bill Operation Mode and Features
The proposal will establish a system similar to Florida's, allowing sports betting operators to set up servers on tribal lands and in areas where the Hard Rock Casino has a monopoly. This system will allow bettors to place bets anywhere in Wisconsin.
This model aims to balance tribal interests and statewide service coverage.
Approval Process and Legal Requirements
The proposal is just the first procedural step to allow sports betting under the tribal gaming agreements. The final plan still needs approval from the U.S. Department of the Interior to be officially implemented.
The entire approval process may involve multiple rounds of negotiations and amendments, potentially over a long time span.
Support Reasons and Expected Benefits
Supporters believe that illegal offshore entities profit from unregulated sports betting at the expense of consumers, without generating local economic revenue. By regulating this multi-billion dollar industry, a safer mobile betting experience can be provided for consumers.
The bill is expected to generate urgently needed revenue for investment in community building and development projects.
Prediction Market Controversies and Lawsuits
Although Wisconsin does not have statewide sports betting, prediction market operators have begun to take on sports event contracts nationwide. These operators argue that their activities are regulated by the federal Commodity Futures Trading Commission.
State regulators and gaming tribes have filed lawsuits, claiming that prediction markets circumvent various sports betting laws.
Ho-Chunk Nation Lawsuit Case
In August this year, the Ho-Chunk Nation of Wisconsin filed a lawsuit against prediction market operator Karlsh. The tribe alleges that Karlsh engaged in illegal sports betting on tribal lands, violating the Indian Gaming Regulatory Act.
This case reflects the legal boundary disputes between traditional gaming operators and emerging prediction markets.
Policy Background and Research Basis
Earlier this year, the Wisconsin Policy Forum released a report detailing issues that legislators need to consider regarding sports betting in the state. This report provides a research foundation and data analysis support for legislative discussions.
The report content may involve aspects such as market size, regulatory framework, and potential social impacts.
Future Outlook and Implementation Challenges
If the bill is passed, it will mark a significant shift in Wisconsin's gambling policy. The implementation process may face challenges such as technological infrastructure, regulatory coordination, and balancing tribal rights.
In the long term, legalization could bring new tax revenues and market opportunities, but it also requires accompanying responsible gambling measures.