MADISON, Wis. — While sports enthusiasts place billions in wagers during March Madness, Wisconsin’s legislature has passed legislation that could generate significant revenue through expanded sports betting opportunities.
Lawmakers gave final passage Tuesday to a bill allowing tribal gaming facilities to offer online sports betting services throughout Wisconsin. However, the legislation requires Democratic Governor Tony Evers’ approval, which remains uncertain. Implementation would also require new agreements with American Indian tribes who would operate the betting platforms — a process that will extend well beyond this year’s basketball tournaments.
Sports betting has rapidly expanded nationwide since the Supreme Court cleared the way in 2018, growing from just Nevada to 39 states plus Washington, D.C. Should Evers approve Wisconsin’s plan, the state would become the 32nd to permit online sports wagering, the preferred method for most bettors.
State-regulated sportsbooks across America processed nearly $167 billion in wagers last year, producing revenues of almost $17 billion after paying customer winnings, according to the American Gaming Association. This represented nearly a 23% jump from the prior year.
Wisconsin currently restricts gambling to tribal territories through exclusive agreements between tribes and state government. Sports wagering is presently limited to select tribal casinos, with online betting prohibited.
The tribal agreements require a portion of gambling profits to flow back to state coffers. During 2024, tribes contributed just over $66 million to Wisconsin from casino revenues.
The proposed legislation would permit online sports betting only when the supporting technology, including computer servers, operates from tribal lands within Wisconsin. This “hub-and-spoke” framework mirrors Florida’s current system.
The measure has backing from multiple Wisconsin tribes and the Milwaukee Brewers. Advocates argue residents are already placing bets through offshore platforms, prediction markets, or by traveling to neighboring states like Illinois where it’s permitted.
Republican Assembly Speaker Robin Vos acknowledged his opposition to online gambling but stated people are already participating, adding “I would rather make sure that Wisconsinites have some sort of control over that.”
The Sports Betting Alliance, representing major operators including FanDuel, DraftKings, bet365, BetMGM and Fanatics, opposes the legislation. They claim partnerships with Wisconsin tribes wouldn’t be financially viable because federal regulations mandate 60% of gambling revenues return to tribes. These companies favor a state constitutional amendment opening sports betting to all operators.
Sports Betting Alliance representative Damon Stewart testified against the bill, stating “It is simply not economically feasible for a commercial operator to hand over 60% or more of its revenue to an in-state gaming entity, just for the right to operate in the state.”
The legislation has split Wisconsin Republicans since its introduction last year. Senate passage required 12 Democrats joining nine Republicans. The Republican-controlled Assembly approved it through a voice vote without discussion last month.
Governor Evers previously indicated he would sign the bill if passed with tribal consultation and support. However, he has since expressed reservations, noting last month that not all 11 state tribes have registered support. Evers’ spokesperson Britt Cudaback did not respond to requests for comment Tuesday.
Even with Evers’ signature, Wisconsin residents may face additional delays before placing mobile and computer bets. New sports betting programs typically require months to launch.
North Carolina’s governor approved expanded sports betting legislation in June 2023, but online betting didn’t commence until March 2024. Missouri voters narrowly endorsed sports wagering in November 2024, yet it didn’t launch until December. Missouri has seen modest returns so far — $928 million in bets during the first two months generated only $659,000 in state taxes.
Several states have modified their sports betting laws to capture larger revenue shares. Tax increases or restructuring has occurred in Illinois, Louisiana, Maryland, New Jersey, Ohio, Tennessee and Washington, D.C. Colorado and Virginia have reduced previously allowed tax deductions.
Illinois has implemented multiple changes, recently adding 25-50 cent fees on each sports bet placed. Chicago began imposing an additional 10.25% tax on sports betting revenues starting January 1.
Louisiana increased sports betting taxes last year to support college athletics. The revised law allocates one-quarter of online sports wagering tax revenue to public universities with Division I football programs for “the benefit of student athletes.”
Sports betting extends beyond simple team victory predictions. Popular wagers focus on individual player statistics, such as points scored by specific athletes. These proposition bets have featured in recent scandals involving allegations of players manipulating their performance.
The NCAA began urging states in 2023 to restrict bets involving college athletes. Since then, Louisiana, Maryland, Ohio and Vermont have prohibited individual proposition bets on college athletes.
More than a dozen states impose no restrictions on collegiate proposition bets, while nearly the same number ban all such wagers. Other states maintain middle-ground positions, with some permitting prop bets on college athletes only for games not involving their home-state schools.
