Recently, the Wisconsin State Senate Committee held a hearing to discuss a bill aimed at legalizing online sports betting. The proposal seeks to establish a regulatory framework through collaboration between tribes and operators, aiming to expand gambling activities to the online realm. This move could potentially bring tax revenue to the state government and enhance consumer protection.
Hearing Initiates Legislative Process
On Tuesday, the Senate Agriculture and Taxation Committee held a hearing on Bill No. 592, initiated by Senator Howard Marklein and others. The bill was not voted on, but it marked the first step in the legislative process. Its core allows 11 tribes to collaborate with online sports betting operators through a "hub-and-spoke system," provided the servers are located on tribal land, similar to the model in Florida. The bill also requires tribes to renegotiate agreements and obtain federal approval.
Proponents Emphasize Economic and Safety Benefits
Supporters include tribes and professional sports teams, such as the Ho-Chunk Nation and the Milwaukee Bucks. They argue that legalization could curb illegal gambling and generate tax revenue for community investment. Tribal representative Jeff Crawford stated that a regulated market could prevent gambling addiction and implement responsible gambling measures. Senator Marklein believes this would legalize and tax existing illegal activities.
Opponents Concerned About Economic Viability
Opposition comes from some legislators and operators. Senator Andre Jacque worries about the social issues brought by the expansion of gambling. Representatives from the Sports Betting Alliance (SBA), including operators like DraftKings and FanDuel, testified that the bill requires operators to give 60% of their revenue to the tribes, which is not economically attractive. They suggest adopting a more flexible relationship model like that of Michigan. Additionally, there are concerns that the legislative process may be too rushed.
Current Cooperation and Historical Background
DraftKings has already collaborated with local tribes to operate offline sports betting. In 2021, Governor Tony Evers reached an agreement with the tribes on on-site gambling, laying the groundwork for the current discussion. The hearing highlighted the challenges of balancing interests among various parties, with further legislative progress awaited.
