Online Sports Betting in Wisconsin Hits Roadblock in Legislature
Conservative groups, talk radio opposed it, leaving bill's future in question
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A bipartisan effort to legalize online sports betting in Wisconsin hit a roadblock Wednesday, when it was pulled from the Assembly’s agenda hours before lawmakers were scheduled to vote on it.
The betting bill would have allowed people to place bets online in Wisconsin as long as the computer server managing those wagers is on tribal property. Introduced just weeks ago, it faced fierce conservative pushback from a coalition including the Wisconsin Institute for Law and Liberty, Wisconsin Family Action and WISN-AM talk show host Dan O’Donnell.
It was co-authored by Democrats and Republicans in both chambers of the Legislature, who argued that online sports betting is popular, and that Wisconsin is losing revenue by not legalizing it in a similar way to dozens of other states. The bill was backed by tourism groups, Milwaukee’s chamber of commerce, three native tribes who run casinos and the Milwaukee Brewers.
It was opposed, notably, by national online gambling outfits like FanDuel and DraftKings, who said the legislation would prevent them from operating in Wisconsin. In written testimony, a lawyer for the Sports Betting Alliance — a national lobbying group representing online gambling platforms — told lawmakers that the bill would have required outside companies to pay at least 60 percent of their revenue to Wisconsin tribes, calling that provision “simply not economically feasible.”
“Under this bill, because online sports betting requires significant capital and technology investment, not to mention the financial risk, only a small handful of Wisconsin tribes will have the ability to offer their own branded online sportsbook,” said Sports Betting Alliance attorney Damon Stewart. “That’s why Wisconsin adults who want to bet on sports will have very few legal options under this bill.”
Conservative critics argued it ran afoul of state and federal law. In a memo, WILL argued that, under the state constitution, the Legislature does not have the authority to change gambling laws. It also argued that the proposal would violate the federal Indian Gaming Regulatory Act, and that the structure of the proposal hands an unfair monopoly to tribes.
Supporters of the proposal pushed back, pointing to other states that have entered into tribe-approved deals to expand sports betting. In a memo, an attorney for the Forest County Potawatomi Community argued that the U.S. Department of Interior has expanded its regulations to address remote betting, and that the state Legislature does have the authority to define where a bet can take place.
The removal of the bill from the Assembly agenda doesn’t kill it, and lead author Rep. Tyler August, R-Walworth, told reporters Wednesday he’d try again early next year.
Gov. Tony Evers had previously signaled he could sign the bill, as long as it leaves tribal governments in charge of gambling in Wisconsin, according to an interview with WISN-TV.
Online sports betting in Wisconsin hits snag in Legislature was originally published by Wisconsin Public Radio.
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