Is Wisconsin Sports Betting Market Hurting Itself?

Ever since Wisconsin sports betting first launched at the end of November 2021, its growth has remained on the most gradual of trajectories. There was hope the market might explode in 2023, but that level of optimism has proven overly ambitious.

Year-end sports betting reports are starting to roll in around the United States. And according to the data, sports betting in Wisconsin is not among the most profitable.

Questions about these results abound. What does the data actually say? Why isn’t Wisconsin sports gambling higher on the USA’s pecking order? And is it a problem that they’re not among the top sports betting markets in the United States?

New York, New Jersey, Arizona and More Headline the List of Biggest Sports Betting Markets in the United States

Research conducted by NoDepositRewards uncovered the 10 biggest sports markets in the United States. And as Glenn Kaplan of Wisconsin Sports Heroics explained, The Badger State did not make the cut:

“The state of Wisconsin is not in the top 10 list when it comes to sports betting. There are a couple of states near them that have entered the top 10. Indiana is ranked ninth, Iowa is ranked sixth, and Illinois is ranked fifth.”

Though the research did not specify where Wisconsin ranked on the sports betting ladder, it did unpack the top 10 in full. The results were as follows:

New Jersey:
New York: $644.93 per capita
Arizona: $559.06 per capita
Colorado: $558.02 per capita
Illinois: $457.99 per capita
Iowa: $486.95 per capita
Maryland: $480.98 per capita
Kansas $461.88 per capita
Indiana: $427.34 per capita
New Hampshire: $421.09 per capita

Many will cite population size as an obstacle to the standing of the Wisconsin sports betting market. But as you can see, a handful of other lower-populated states make the cut. New Hampshire, for example, ranks in the bottom 10 of total population; they still managed to crack the top 10.

Indiana, which finished ninth, is also wildly similar to Wisconsin’s market. They rank 17th and 20th, respectively, in total population. And so, we must ask the question: Why isn’t the Wisconsin sports betting market larger?

Is On-Site Exclusivity Hurting the Wisconsin Sports Betting Market?

Accessibility appears to be the likely culprit behind Wisconsin’s place in the sports betting hierarchy. The Badger State does not allow residents to bet with online sportsbooks in the United States. There is no overstating how much of an adverse impact this can have on the bottom line.

Last year, well over 75 percent of all legal wagers placed in the United States were processed through an online sportsbook. This year, that number is expected to land north of 80 to 85 percent. And in many parts of the country, the share of bets getting placed with online betting sites is significantly more than 90 percent.

Without having that method at their disposal, The Badger State is working from a disadvantage. They are entirely reliant on retail sports betting in Wisconsin. That’s a shaky proposition by itself. In this case, it’s complicated by a limited number of available sportsbooks in Wisconsin.

When Wisconsin sports betting launched in 2021, only one casino was ready to accept wagers. Fast forward more than two years, and that number has climbed to three. That’s not nearly enough locations to service an entire state. Many Wisconsinites are likely still traveling to bet on sports in Illinois or to bet on sports in Iowa. And by the end of 2024, residents may also have the ability to cross state lines and bet on sports in Minnesota.

All of these factors contribute to Wisconsin landing outside the top 10 betting markets in the United States. But is that really a problem?

Wisconsin Sports Betting is Still Generating Revenue

Framed this way, the Wisconsin sports betting model seems overwhelmingly flawed. And it just might be. It’d be one thing if they weren’t a robust sports market. But they are.

Wisconsin is home to flagship franchises and programs like the Milwaukee Bucks (NBA), Milwaukee Brewers (MLB), Green Bay Packers, Marquette Golden Eagles (NCAA basketball) and University of Wisconsin Badgers (NCAA football and basketball). Other states would kill for that selection of teams, nearly all of which have vast fanbases. The catalog of teams is extensive enough to juice Wisconsin sports betting revenue if and when the state expands operations.

However, as we’ve covered previously, Wisconsin sports betting expansion doesn’t appear especially imminent. They remain focused on setting up and optimizing retail locations. It could be years before they entertain online sports betting in Wisconsin.

Without question, this is an issue for anyone who doesn’t live near a casino sportsbook. And the state is no doubt losing money to their neighbors. But Wisconsin still makes money off sports betting. Tribal gaming laws don’t require them to report their total handle, but the kiosks set up at various casino locations are reportedly busy on a regular basis.

Even so, two years later, you’d expect the conversation to be moving in some kind of forward direction. So far, though, Wisconsin sports betting seems like it’s in a holding pattern. It isn’t just that they’re nowhere near a top-10 market. It’s that the path toward exponential growth is peppered with more questions than prospective answers, concrete plans and a definitive direction.

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