Online sports betting has officially become legal in Wisconsin after Governor Tony Evers signed Assembly Bill 601. The measure enables the state’s 11 federally recognized tribes to update their gaming compacts to include online wagering.
In the lead-up to signing the legislation, Evers consulted with all 11 tribes in the state. While the discussion resulted in him signing the bill, he emphasized that betting revenue needs to be distributed in a way that supports all participating nations.
He stressed that any model moving forward must avoid creating more disparities between tribes, firmly rejecting approaches that would disproportionately benefit some while sidelining others.
The law allows tribes to adopt a “hub-and-spoke” system, where bets placed anywhere in Wisconsin are processed through servers located on tribal land. This is similar to the model used by the Seminole Tribe of Florida to roll out online sports betting in Florida.
Under this structure, wagers are legally permitted on tribal land, provided the infrastructure is based there, and the tribe has an approved gaming compact.
To participate, each tribe must renegotiate its gaming agreement and secure federal approval, either to operate independently or through partnerships with commercial sportsbooks.
While Wisconsin’s tribes will be at the center of the new online sports betting market, questions remain about whether the market will be viable for major operators.
The structure outlined in Assembly Bill 601 heavily favors tribal control, as any outside sportsbook would need to operate through a partnership with a tribe.
One key factor is the financial arrangement. Companies entering the market would be expected to share about 60% of their revenue with their tribal partners. That level of revenue sharing could make Wisconsin a less appealing destination compared to other states with more favorable terms for operators.
During earlier discussions on the legislation, the Sports Betting Alliance outlined how a model built under the federal Indian Gaming Regulatory Act, combined with the hub-and-spoke system, may limit profitability and discourage entry into the state.
With that said, there is precedent for operators accepting similar conditions.
In Arkansas, companies like FanDuel and DraftKings entered the market through casino partnerships despite revenue-sharing requirements exceeding 50%. Their involvement there suggests that there’s still a chance that large operators could enter the Wisconsin market.
The example in Arkansas is encouraging for Wisconsin bettors hoping to be able to try out top operators like FanDuel and DraftKings.
