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State lawmakers have opened formal discussions on a proposal to legalize and regulate mobile sports betting through partnerships between Wisconsin’s tribal nations and online operators, a move that could significantly expand the state’s gaming landscape.
First step toward statewide online betting
The Senate Committee on Agriculture and Revenue held its first hearing on Senate Bill 592, which seeks to authorize online sports wagering via Wisconsin’s 11 federally recognized tribes. Co-authored by Senator Howard Marklein, who sits on the committee, the bill marks an early but pivotal step toward legalizing digital betting.
“If we do this, it will legalize what a lot of people do right now illegally,” Marklein said during the hearing. “We’ll make this legal and collect taxes on this, which we certainly need.”
The proposal sets up a “hub-and-spoke” system, a lot like what’s already happening in Florida. There, the Seminole Tribe runs online betting across the state, but all the betting servers sit on tribal land. That detail matters because it keeps everything in line with the Indian Gaming Regulatory Act (IGRA).
Legislative process and tribal involvement
To move forward, Wisconsin’s tribes would need to renegotiate their gaming compacts with the state, with subsequent approval required from the U.S. Bureau of Indian Affairs.
Marklein co-authored the bill alongside Representatives Kalan Haywood and Tyler August, and Senator Kristin Dassler-Alfheim.
“For too long, illegal, offshore entities have profited from consumers through unregulated sports wagering, without generating revenue for local economies,” Haywood said last month.
“By regulating this multi-billion-dollar industry, we can provide a safer mobile wagering experience for Wisconsin consumers and generate much-needed revenue to invest into our communities.”
Tribal nations voice strong support
The proposal has drawn early backing from several tribal governments. The Ho-Chunk Nation, which recently filed a lawsuit against prediction market operator Kalshi over alleged illegal sports betting, testified in favor of the bill. The tribe pointed out that more gaming revenue would really help fund its government programs.
Jeff Crawford, who’s the Attorney General for the Forest County Potawatomi Community, spoke up in support, too. He said Wisconsin’s big sports teams—the Bucks, Brewers, and Packers—are all for legalization.
Crawford made another point: people in Wisconsin already bet millions every year on offshore sites. If the state regulates betting, it can protect consumers, tackle gambling problems, and make sure betting dollars help local communities.
Industry perspectives and opposition
Not all testimony was in support. Not everyone is on board, though. Senator Andre Jacque isn’t sold on expanding gambling everywhere in the state.
The Sports Betting Alliance (SBA), which represents the country’s top sportsbook operators, has its own concerns. They like the idea of legalization, but they don’t agree with some of the bill’s main pieces, especially how revenue would be shared under IGRA.
According to the SBA’s counsel, operators would be required to send 60% of revenue to partner tribes, making participation “economically unattractive.”
“That number is so large, they would lose money — it just won’t work for them,” the representative said, suggesting that other states, like Michigan, offer more balanced partnership models.
Looking ahead
DraftKings, already running a retail sportsbook with the Lac du Flambeau Band of Lake Superior Chippewa Indians at Lake of the Torches Resort Casino, is keeping a close eye on how things play out.
Wisconsin started moving toward legal online betting back in 2021, when Governor Tony Evers signed off on in-person wagering through new tribal compacts. SB 592 could represent the next major step — one that may determine whether the state joins the growing list of U.S. jurisdictions embracing regulated online sports betting.
Source: iGaming Business
