On-site Wisconsin sports betting has now been up and running for the better part of a half-decade. Sometime in the near future, legal online sports betting may also be added to the portfolio.
Many have wondered if and when sports betting in Wisconsin will expand to include online wagering. The Badger State has opted for a gradual rollout compared to many of its neighbors. Sportsbooks are exclusively operated by tribes. And as of now, six tribal nations have launched some version of their own sportsbook. The entire list: Oneida Nation, St. Croix Chippewa Indians of Wisconsin, Sokaogon Chippewa Community, Forest County Potawatomi, Lac Courte Oreilles Band and Lac du Flambeau Band.
This setup is not the first of its kind, and there is a method to the restriction. First of all, giving tribal nations exclusivity ensures all Wisconsin sports betting revenue remains within the states. Commercial online sportsbooks are not based out of The Badger State. Aside from the tax revenue they pay, their profits will be funneled elsewhere.
Limiting operations to tribal nations also makes sure they don’t have to compete or partner with market heavyweights. Online sportsbooks like DraftKings and FanDuel may be convenient for users, but they can also eat into the profits of tribal operations.
What’s more, tribal exclusivity results in the state receiving a guaranteed fee rather than a rolling share of the revenue streams. Of course, given the rise in popularity of online sportsbooks across the United States, annual fluidity is no longer considered a risk. States with mobile sports betting apps generally see their tax revenue rise year-over-year.
To that end, state officials may soon consider the expansion of Wisconsin sports betting, according to a Wisconsin Policy Forum Report. The extremely in-depth document details not only the challenges and downsides of expansion, but also maps out how The Badger State might go about broadening their offerings.
Could Florida Serve as Inspiration for Wisconsin Sports Betting Expansion?
The Wisconsin Policy Forum report explicitly mentions the way sports betting in Florida operates when considering what comes next in The Badger State. Consider the following excerpt:
“A recent case in federal court offers another potential template for a more limited legalization of online sports betting here. In 2021, the state of Florida agreed to a compact that gave the Seminole tribe exclusive authority to conduct online sports betting with users anywhere in that state so long as they were placing bets through a server located on tribal lands. The terms of the compact were challenged in federal court and upheld by an appellate court. The U.S. Supreme Court declined to review the appellate ruling last year. This creates a potential precedent for a Wisconsin tribe to seek to renegotiate the terms of its compact with the state to allow online sports betting with customers around the state through a server on tribal land. Though this possibility remains for now hypothetical, policymakers and the public may wish to consider and discuss their views on it.”
Traveling this route would be a win for tribal nations. They get to capitalize on the access incumbent of online sports betting without having to compete against—or partner with—other sportsbooks.
This direction also allows all parties involved to bypass a constitutional amendment, which requires voter approval that cannot come before 2026. Following in Florida’s footsteps instead consists of renegotiating gaming compacts with all the impacted tribes.
Is Wisconsin Set Up to Follow in The Sunshine State’s Footsteps?
In other states, large-scale compact amendments can prove difficult. Look no further than the push for sports betting in Oklahoma. The state has struggled to find common ground between the governor’s office and the vast many tribal nations.
This may not be an issue for Wisconsin sports betting. There are only 12 active tribal nations inside the state, according to the report. Eleven of them apparently already have some type of gambling/sports betting compact in place. Theoretically, these existing agreements in the sports betting arena should make it easier to renegotiate terms across the board.
Yet, this all presumes officials do not want to explore the constitutional amendment scenario. While Florida’s setup may be cleaner, there is a chance policymakers view the alternative as more lucrative.
Why Wisconsin Sports Betting Expansion May Require Constitutional Amendment
Amending the state constitution would allow for the presence of commercial Wisconsin online sportsbooks. The size and reach of these operators can, in turn, drive more business. That, in all likelihood, will be good for the state’s tax revenue.
As the Policy Forum report notes, Wisconsin gambling revenue hit $66.3 million during the 2024 calendar year. By that metric, the state may not push for additional betting income streams. However, these figures do not separate Wisconsin sports betting revenue from any other type of gaming. It is looped together with everything else, making it impossible to know what percentage originates from sports betting specifically.
Regardless of how Wisconsin sports betting expands, there is additional money to be made. And while the path to it remains unclear, the state’s interest in it is even more ambiguous.
Tribal officials have previously indicated the legalization of online Wisconsin sports betting is inevitable. They have also intimated the timeline for approval is 10 years, if not 15 years. This Wisconsin Policy Forum report suggests officials will investigate expansion long before that. And that is probably accurate. Whether those investigations lead to actual expansion anytime soon, though, continues to be anyone’s guess.
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