Mobile Sports Betting Bill Passes First Hurdle in Wisconsin

The battle has ensued for several years. Finally, the Wisconsin State Assembly has been able to pass a bill that will legalize mobile sports betting for the state's residents.

The bill in question is Assembly Bill 61 (AB-61). On the way to the Senate for consideration, the proposal is being referred to as a “hub-and-spoke” model.

According to sources, the wagering would be controlled by one of the state's licensed Indian Tribes. It would work as follows. Tribal communities would serve as licensed providers, further partnering with licensed sports betting software providers. Residents would be allowed to place sports wagers with their smartphones. However, they would be effectively accessing platforms that are residing on physical servers located on Tribal land.

By taking this approach, state regulators will be honoring a Tribal pact that awards sole control over certain types of gambling to one of the state's registered Tribes. This compact was effectively established in 1988 under the Indian Fair Gaming Act. However, Governor Tony Evers would still need to negotiate an amendment with some or all of the state's 11 Tribes. Final approval would be needed by the U.S. Department of the Interior.

Advocates for the Bill

The bill was able to move forward after getting support from the State of the Tribes. During an assembly panel, Nicole Boyd, chairperson of the Red Cliff Band of Lake Superior Chippewa, expressed her Tribe's support for the bill, claiming the bill to be a vital economic tool for the improvement of the tribe's self-sufficiency. Concurrence was confirmed with other Tribes.

According to some analysts, the passing of this bill could bring in as much as $6 million to $12 in increases in the state's annual gambling revenue model. It doesn't sound like a lot, but it does represent a significant revenue boost to the parties most affected. Note: That revenue is net revenue based on hundreds of millions of currently unregulated bets that would suddenly start benefitting the state instead of outside sources.  

Speaking for the Opposition

As the bill reads now, it is expected to meet opposition in the Senate. Much of that opposition is expected to focus on the usual suspects: social and constitutional concerns.

According to Senate President Chris Kapenga (R), his side of the aisle is concerned about an increase in gambling addiction, something that would adversely affect community life in the state. He further expressed concerns about the constitutionality of the creation of a tribal monopoly, centered on online gambling in general.

It's worth noting that concerns about this particular sports-betting model were expressed by representatives from top-rated sports betting operators like DraftKings and FanDuel. They warned that this kind of model left little on the bone for the services that would be managing the wagering process.

At this point, the Senate has about three weeks to consider and vote on this bill. Should they fail to do that, the bill will expire and need to be refilled at a later date. Senate Majority Leader Devin LeMahieu is not sure enough votes exist to get this bill passed.