Wisconsin Weighs Tribal Online Betting

Wisconsin lawmakers began formal discussions Tuesday on a proposal that could expand legal sports betting to mobile devices, allowing the state’s tribal nations to partner with online operators under new regulatory terms.

The Senate Committee on Agriculture and Revenue held a hearing on Senate Bill 592, which would establish a framework for online sports wagering through a “hub-and-spoke” model. The approach would permit the state’s 11 federally recognized tribes to partner with sportsbook operators, provided the servers processing wagers are located on tribal land. Senator Howard Marklein, a co-author of the bill and a member of the committee, said the measure would bring an existing underground market into the legal system. “If we do this, it will legalize what a lot of people do right now illegally,” Marklein said. “We’ll make this legal and collect taxes on this, which we certainly need.”

The bill would require renegotiation of tribal gaming compacts with the state and approval from the U.S. Bureau of Indian Affairs. Co-authors include Representatives Kalan Haywood and Tyler August, and Senator Kristin Dassler-Alfheim.

Haywood said the proposal seeks to protect consumers and channel revenue to Wisconsin communities. “For too long, illegal, offshore entities have profited from consumers through unregulated sports wagering,” Haywood said in a statement. “By regulating this multi-billion-dollar industry, we can provide a safer mobile wagering experience for Wisconsin consumers and generate much-needed revenue.”

Bill	Model	Tribes	Revenue share	Status
Senate Bill 592	Hub-and-spoke (server on tribal land)	11 federally recognized tribes	SBA cited ~60% to tribes (contested)	Committee hearing; no vote

 

Tribal and Industry Support

Several tribal representatives voiced support for the bill during the hearing. The Ho-Chunk Nation, which has previously challenged what it viewed as illegal sports wagering operations on tribal land, endorsed the measure, citing potential economic benefits for tribal governance and public services.

Jeff Crawford, attorney general for the Forest County Potawatomi Community, said Wisconsin’s professional sports teams — including the Milwaukee Bucks, Milwaukee Brewers, and Green Bay Packers — support legalizing sports betting. His tribe partners with those teams and views the legislation as a way to ensure consumer protections.

Crawford emphasized that Wisconsinites already wager millions of dollars each year, often through unregulated channels. He argued a legal market would strengthen safeguards against problem gambling and ensure that revenue stays within the state. Not all lawmakers were convinced. Senator Andre Jacque raised concerns about expanding gambling in Wisconsin, warning of potential social costs.

Meanwhile, the Sports Betting Alliance (SBA) — representing operators such as DraftKings and FanDuel — testified that while it supports legal online sports betting, it opposes the bill’s revenue-sharing model. Under the proposal, operators would remit 60% of their revenue to partner tribes, a structure the SBA described as unworkable. “That number is so large, they would lose money — it just won’t work for them,” an SBA representative told the committee.

The alliance suggested that arrangements similar to those in Michigan, where tribes and operators form partnerships outside of the Indian Gaming Regulatory Act (IGRA) framework, could offer more viable terms. DraftKings already operates a retail sportsbook through a partnership with the Lac du Flambeau Band of Lake Superior Chippewa Indians at the Lake of the Torches Resort Casino.

 

If we do this, it will legalize what a lot of people do right now illegally,” said Senator Howard Marklein. “We’ll make this legal and collect taxes on this, which we certainly need.

 

Next Steps

The committee did not vote on the bill Tuesday. If advanced, it would mark a significant shift in Wisconsin’s gambling landscape, which currently limits sports betting to in-person wagers under tribal compacts approved by Governor Tony Evers in 2021. The hearing signaled growing legislative interest in regulating mobile wagering, though the proposal faces economic and political hurdles before reaching the governor’s desk.