Could Wisconsin Sports Betting Expansion Happen on a Limited Basis?

Relative to the rest of the United States, Wisconsin sports betting debuted right in line with the majority, if not earlier than most. The first legal wagers in The Badger State were accepted back in November 2021. Since then, though, sports betting in Wisconsin is very clearly lagging behind neighboring markets such as Michigan and Illinois, as well as the rest of the country writ large. 

This deficit has nothing to do with interest. Demand for Wisconsin sports betting remains high. Instead, it has everything to do with the state’s set up. Currently, sports betting in Wisconsin is only allowed on-site, at select casino locations. There is no online sports betting permitted in Wisconsin. That inherently caps growth and earning potential. Not everyone is within driving distance of a casino. And though there are a couple of Wisconsin sports betting apps, they can only be accessed on the premises of their casino providers.

To be certain, this is not a unique structure. Legalized sports betting in the United States does not always include an online element. Still, among the 39 states that offer some form of sports betting, the majority green light online operations. That puts The Badger State in the minority. 

Not only that, but Wisconsin sports betting has limited offerings even by their own standards. Only four Native Nations are authorized to offer legal gambling. What is more, just one of these four even offers an on-site sports betting app.

All of which has left many wondering when, or if, Wisconsin will undergo sports betting expansion. Certain stakeholders deem it inevitable. But the timeline for it is fuzzy. And given the state’s conservative approach to legal sports betting, it’s time to start discussing whether expansion will take a more limited form than many expect.

Wisconsin Lacks Framework to Incorporate Widespread Online Element

The Racine County Eye in Wisconsin recently took a look at the state of sports betting in the state. And as they write, the idea that online sports betting will happen overnight is becoming increasingly tough to envision. It leads them to conclude that the state may be better off, it not more likely, embracing incremental expansion:

“Wisconsin could also take a phased approach to modernization, starting with limited online sports betting options under strict regulations. This would allow policymakers to assess the economic and social impacts before considering a broader rollout. Furthermore, collaboration with Native Nations could create mutually beneficial agreements that respect tribal sovereignty while fostering industry growth.”

Collaboration with local Native Nations is critical in basically every state. Addressing concerns among officials and constituents looms as the bigger hurdle. 

As it stands, therapists in Wisconsin are already worried about the impact of sports betting on the wider population and particularly at-risk demographics. Not surprisingly, they are wary of online sports betting coming to Wisconsin. This move increases access to the state at large. With more access comes more financial upside. But it also comes with more risks. 

Most notably, states with legal online sports betting almost universally report measurable upticks in problem gambling. These progressions are not just specific to the initial years, either. In fact, it is probably the contrary. The longer a market offers sports betting, the more likely downsides are to fester and, in turn, evolve into larger problems. 

That’s why a limited expansion of Wisconsin betting could be the way to go. It affords the state time to hammer out potential kinks and, perhaps, address issues with which every sports betting market grapples. The latter benefit is huge by itself.

Sports Betting in Michigan and Illinois Increasing Interest and Urgency to Add Online Wagering in Wisconsin

With all of this said, there is always the chance Wisconsin fast tracks sports betting expansion. There is a lot of money to be made, after all. The vast majority of bets placed in the United States are processed through an online operator. If state officials can find a happy medium with Native Nations on how to offer it, we could suddenly see the timeline for expansion hit the gas pedal.

Certain experts will not see this as possible. They believe the societal concerns that get highlighted are legitimate rather than performative caution. And they might be right. But in that Racine County Eye investigation, they allude to a growing concern about online Wisconsin sports betting revenue being lost to nearby states like Illinois and Michigan. At some point, it really does seem like increasing access to sports betting—and the tax revenue that comes with it—will take priority.

In the meantime, Wisconsin looms as a potential pivot point for the industry. If they prefer a more limited expansion of online sports betting, it could make for a vastly different experience compared to the rest of the country. That isn’t necessarily a good thing.

Then again, if a slower expansion leads to a safer, more effective Wisconsin sports betting experience, it could signal a landmark moment for the industry. Other states, in this scenario, will follow suit. Believe it or not, other markets with online sports betting may actually be hoping that Wisconsin takes a more gradual approach. Because if Wisconsin’s experimental approach results in better, more effective regulation, it will create a blueprint for every state with sports betting. 

Now, will The Badger State travel down this path? That’s a separate matter. But it’s conservative approach to this point suggests a similar idea will inevitably, if already, be on the table.

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