A new report outlines Wisconsin considerations before any online sports betting expansion.
The Wisconsin Policy Forum released a report this month detailing the concerns lawmakers need to consider before expanding sports betting in Wisconsin. Legalizing statewide commercial sportsbooks would require a constitutional amendment.
Wisconsin is one of five states that allows sports betting only through operations run by the state’s tribal nations. The Badger State only allows in-person sports betting on tribal land.
Wisconsin sports betting landscape
The state constitution prohibits most gambling, except for bingo, raffles, horse racing and the state lottery. Still, the state’s tribes can offer gambling on their land.
Multiple tribal nations run Class III casinos that offer slot machines and table games. Nine of the state’s 11 tribes have also negotiated their compacts to include sports betting at the casinos.
The report also notes that illegal online sportsbooks and bookies are also active in Wisconsin. It notes that quantifying those activities falls outside of its scope.
Gambling fee growth
The compacts require the tribes to submit payments to the state. After a pandemic-induced dip in 2020, tribal gaming payments grew from $57.6 million in 2022 to $66.4 million in 2024.
The figures do not break down sports betting’s contribution to the increase.
According to the report, if the constitution allows non-tribal entities to begin offering gambling, the state would forfeit those fees.
Policy report conclusion
While legalizing commercial sports betting could potentially increase tax revenue, it could also bring societal harm, the report notes. It said more research is needed to understand the downsides of legalizing online sports betting in Wisconsin.
The report also suggests the route Florida took to legalize online sports betting. The Seminole Tribe of Florida saw the federal court system drop a case challenging its compact, which allows Hard Rock Bet to operate exclusively in the state.
“This creates a potential precedent for a Wisconsin tribe to seek to renegotiate the terms of its compact with the state to allow online sports betting with customers around the state through a server on tribal land,” the report reads. “Though this possibility remains, for now, hypothetical, policymakers and the public may wish to consider and discuss their views on it.”
