Could Wisconsin Sports Betting Look Different After Florida Gambling Litigation?

When Winsconsin sports betting launched back in November 2021, the rollout was incomplete. Accessibility to retail locations was an issue. The state, in fact, began with just one casino accepting wagers.

Since then, sports betting in Wisconsin has expanded to include more locations. However, online sports gambling in Wisconsin remains illegal unless it takes place on tribal property. This permits tribal casinos to launch their own Wisconsin sports betting apps, though it significantly limits when and where they can be used.

And yet, depending on how the legal battle over sports betting in Florida ultimately shakes out, The Badger State could actually see that change. Allow us to explain why.

Wisconsin Sports Betting Circumstances are Eerily Similar to Legalization of Gambling in Florida 

Typically, when the legalization of sports betting requires a constitutional amendment. Gambling proposals must be introduced and pass through the House of Representatives and Senate. From there, they appear on a general election ballot. If the majority of the voting population approves, they will then be signed into law and a rollout process will get put into place. 

That is not the route Wisconsin sports betting and Florida sports betting ended up taking. Both states instead simply amended current gaming compacts with their local tribes to allow for retail sports betting wagering. Coincidentally, this happened around the same time. Wisconsin retail sports betting launched in November 2021, at approximately the same time as Florida retail sports betting.

While other states have explored this path, most invariably opt against it. Forgoing constitutional amendments only makes sense if you’re planning to skirt commercial gambling. It’s a different story if states want to allow corporate retail operators and online sportsbooks in the United States to enter the market. Florida and Wisconsin decided adjusting the gaming compacts with local tribes was the way to go. As part of this deal, though, Wisconsin’s sports betting laws are incredibly explicit and permit online sports betting only under extremely specific circumstances. Bart Shirley outlined them for Legal Sports Reports:

“The amendment that paved the way for the Oneidas to open their sports betting operations is the third amendment to the tribe’s 1991 compact. Although most tribal amendments tend to be short on detail, this one actually serves as a reasonable analogue for the sports betting laws in other states. Under the language of the amendment, the Oneida Indian Nation can offer wagering on “events.” Event wagering is defined as: ‘accepting wagers on the outcomes of, or occurrences within, sports and non-sports games, contests, and matches, but shall not include pari mutuel wagering on horse, harness, or dog-racing events.’ In other words, betting on both sporting events and other contests is legal. Unlike in some states, it is possible to wager on the Oscars and esports in Wisconsin. Based upon the language about outcomes and occurrences, it is also clear that the agreement permits live wagering alongside the standard pregame betting. Online sports betting is legal under the agreement, but only at the tribe’s properties. That means the Oneidas must ensure their app is only available within the tight perimeters of their nine properties in the Green Bay area through geolocation verification software.” 

This language is eerily similar to how sports betting was legalized in Florida. But the Seminole Tribe, which held exclusive gaming rights in The Sunshine State, eventually pushed the boundaries of interpretation. The end result? Legal sports betting was repealed in Florida and has remained in limbo ever since. Recent developments, however, could present an interesting opportunity for Wisconsin retail sportsbooks.

Could Online Sports Betting in Wisconsin be Extended Past Tribal Properties?

The sports betting issue in Florida is complicated. In a nutshell, though, a group of other casino operators filed a lawsuit once the Seminole Tribe began letting customers use their mobile sports betting app anywhere throughout The Sunshine State. The plaintiffs argued this violated the definition of “tribal property.” But the Seminoles insisted that their Florida mobile sports betting app was an extension of their property, and that customers should be allowed to access it and use it anywhere throughout the United States.

Initially, a District Court judge ruled in favor of the plaintiffs. That decision has since been overturned, multiple times, in the Appeals Court. The Seminoles and state of Florida are currently waiting to see whether this matter gets elevated to the United States Supreme Court before they consider a sports betting relaunch.

How might this impact Wisconsin mobile sports betting apps? Well, if the current Florida ruling holds up, it sets an interesting precedent. Essentially, the Appeals Court has determined that mobile sports betting applications are an extension of tribal property. That, in turn, would free up the Oneidas to offer online sports betting access throughout the entire state of Wisconsin. 

Granted, this logic isn’t Teflon. The Oneidas would invariably face push-back from other operators who want to enter the market. And there is a reason they haven’t followed in the Seminole Tribe’s footsteps. The litigation in Florida has been messy, long and, above all, entirely shuddered sports betting operations.

Still, the calculus changes if the Seminoles are allowed to relaunch their mobile sports betting application with its previous accessibility. The Oneidas could use their victory as a chance to broaden their own offerings and drive up both their own revenue as well as the state’s profit from taxes paid. Of course, we can’t guarantee the Oneidas would make such an attempt. It’s hard to envision right now. At the very least, though, the window of opportunity to expand will open if the Seminoles win the Florida sports betting battle.

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