The Sports Betting Alliance (SBA), which represents major operators like FanDuel and DraftKings, has opposed Wisconsin Assembly Bill 397, arguing that the measure could inadvertently benefit unregulated markets. The SBA states that the bill’s structure may negatively impact consumer protections and regulatory oversight if enacted in its current form.
SBA President and CEO Joe Maloney said Monday that residents should have a direct voice in shaping statewide wagering policy.
AB 397 mirrors a model adopted in Florida, establishing a “hub-and-spoke” system that would allow Wisconsin’s tribal nations to expand into online sports betting beyond the reserve. Under the proposal, tribes would negotiate a revenue-sharing agreement with the state.
The SBA advocates for an open, competitive market where multiple commercial operators can obtain licenses and pay state taxes. Maloney argued that limiting control to tribal entities could reduce competition and lead to less favorable environment for bettors.
The SBA points to Florida as a cautionary example. Under a similar framework, Florida’s online sports betting market currently operates exclusively through Hard Rock Sportsbook, effectively leaving bettors with a single statewide option.
This structure restricts competition, limits promotional offers, and reduces pricing pressure that typically benefits consumers.
The SBA warns that adopting a comparable model in Wisconsin could produce similar results. With fewer operators allowed to participate, bettors may encounter less competitive odds and diminished bonus incentives, pushing them to offshore platforms.
This may cause inflated pricing on betting lines while reducing promotions, making these Wisconsin betting sites less desirable for the average user. The risk there is that bettors get pushed towards offshore platforms.
That could be problematic because offshore sportsbooks are unregulated, so they don’t offer the same consumer protections as FanDuel, DraftKings, and other regulated operators.
The argument in support of changes to AB 397 is that by providing a broader licensing system, it would allow several sportsbooks to set up shop alongside tribal operators, creating a more competitive environment. Not only would this bring in more tax revenue, but it would also benefit sports bettors.
In Wisconsin, gaming policy is closely tied to tribal compacts, which adds legal and constitutional complexity to any expansion to online sports betting.
If lawmakers view the bill as a straightforward extension of existing tribal agreements, major structural changes, as those lobbied for by the SBA, could face resistance.
However, sustained lobbying from the SBA, combined with public debate over competition, tax revenue, and consumer choice, could push them towards amendments.
While there’s a chance that this may happen, the result remains to be seen.
