Wisconsin Considers Landmark Shift Toward Tribal-Operated Online Sports Betting

Key Moments:

  • The Wisconsin Senate Committee on Agriculture and Revenue has initiated hearings on Senate Bill 592, aiming to permit mobile sports betting through partnerships with the state’s 11 federally recognized tribes.
  • The proposed bill would create a “hub-and-spoke” framework, requiring all betting servers to be located on tribal land in accordance with the Indian Gaming Regulatory Act (IGRA).
  • Industry stakeholders and tribal nations have expressed early support and opposition, with major concerns centered around the proposed 60% revenue share for partner tribes.

Senate Bill 592 Debuts in Legislature

Formal deliberations have started on the legalization and regulation of online sports wagering in Wisconsin, as lawmakers examine Senate Bill 592. Introduced by Senator Howard Marklein and other co-authors, the bill would enable digital sports betting through collaborations between online operators and the 11 federally recognized tribal nations in the state. During discussions, Marklein remarked, “If we do this, it will legalize what a lot of people do right now illegally. We’ll make this legal and collect taxes on this, which we certainly need.”

Details of the Proposed System

The bill outlines a “hub-and-spoke” arrangement in which tribes would manage statewide mobile betting, provided all betting servers remain on their lands to ensure compliance with federal law. In this model, as seen in other states, the legal structure aligns with the Indian Gaming Regulatory Act (IGRA) by anchoring operations on tribal property.

Legislative Steps and Tribal Collaboration

If the proposal advances, Wisconsin’s tribal nations would need to negotiate updates to their gaming compacts with the state, followed by review and approval from the U.S. Bureau of Indian Affairs. Senator Marklein co-authored the legislation with Representatives Kalan Haywood and Tyler August, along with Senator Kristin Dassler-Alfheim. Haywood previously commented, “For too long, illegal, offshore entities have profited from consumers through unregulated sports wagering, without generating revenue for local economies,” highlighting the potential economic benefits of regulation. “By regulating this multi-billion-dollar industry, we can provide a safer mobile wagering experience for Wisconsin consumers and generate much-needed revenue to invest into our communities.”

Tribal Nations Signal Support

Several tribal entities have already voiced approval for the bill. The Ho-Chunk Nation, currently engaged in legal proceedings concerning alleged illegal sports betting, offered testimony in favor, emphasizing the importance of increased gaming revenue to support government programs. Forest County Potawatomi Community Attorney General Jeff Crawford also spoke in support, noting that the state’s major sports franchises back legalization efforts. He argued that regulating online betting could provide consumer protection and deliver financial benefits to Wisconsin communities that currently lose millions annually to offshore operators.

Industry Response and Areas of Concern

Despite tribal support, not all input was positive. Senator Andre Jacque expressed reservations about gambling expansion in the state. The Sports Betting Alliance (SBA), representing leading sportsbook operators, acknowledged support for legalization but raised objections to key aspects of the bill, particularly the 60% revenue share allocated to partner tribes under IGRA requirements. SBA’s counsel argued, “That number is so large, they would lose money — it just won’t work for them,” while pointing to alternative partnership models in other states as more economically viable.

StakeholderPositionMain Concern
Tribal NationsSupportiveIncreased gaming revenue for community programs
Sports Betting AllianceOpposed to Current Bill Structure60% revenue share to tribes seen as unattractive
Wisconsin SenateDebatingGambling expansion, regulatory structure

What Lies Ahead

DraftKings, which currently operates a retail sportsbook with the Lac du Flambeau Band of Lake Superior Chippewa Indians at Lake of the Torches Resort Casino, is closely observing developments. Wisconsin began its journey toward legal online wagering with the approval of in-person sports betting through new tribal agreements in 2021. The outcome of Senate Bill 592 could determine the pace and structure of future online sports betting in the state.

  • Author

Daniel Williams

Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
Daniel Williams
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