Wisconsin is a step closer to legalizing online sports betting, with a new bill now heading to Governor Tony Evers for final approval.
The proposed law, Assembly Bill 601, passed the state Senate with a 21–12 vote and would introduce a tribal-controlled online sports betting market in the state.
Tribal monopoly model similar to Florida
The bill follows a “hub-and-spoke” model, similar to the one used in Florida. Under this system, all bets must be processed through servers located on tribal land.
In practice, this would give Wisconsin’s federally recognized tribes full control over online sports betting operations, effectively creating a monopoly for tribal operators.
Commercial operators such as FanDuel and DraftKings would not be able to operate independently. Instead, they would need to partner with tribes for branding or technology solutions.
Revenue split a major sticking point
One of the most controversial elements of the bill is the revenue structure. Federal requirements mean that at least 60% of the revenue must go to tribal entities.
Industry groups, including the Sports Betting Alliance, have argued this makes the market economically unattractive for major operators. According to critics, handing over such a large share of revenue leaves little room for sustainable business models.
Legal and regulatory hurdles remain
Despite passing the Senate, the bill still faces several challenges before it can become law.
Wisconsin would need to renegotiate gaming compacts with its 11 tribes, and those agreements must then be approved at the federal level by the Bureau of Indian Affairs.
Governor Evers is expected to sign the bill, but has previously expressed concerns about whether there is enough support among all tribal groups, something that could still delay or complicate implementation.
Pressure from offshore betting and prediction markets
Supporters of the bill argue that legalization is necessary because Wisconsin residents are already betting online through offshore websites and emerging platforms like prediction markets.
By regulating the market, the state hopes to bring that activity under control while ensuring revenue flows to local tribal communities instead of unregulated operators.
What this means for the US market
If signed into law, Wisconsin would become the 40th U.S. state to legalize online sports betting in some form.
The bill also reinforces a growing trend in the U.S., where tribal operators are gaining a stronger position in online casino, often at the expense of traditional commercial sportsbooks.
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