Wisconsin Mobile Betting Legalized: Why Big US Sportsbooks Opposed the Bill

On April 9, Wisconsin legalized mobile sports betting, becoming the 33rd state to have online sports bets. Governor Tony Evers signed the bill, which expanded on Wisconsin’s gambling sector – which was legal but only at retail tribal locations. However, it is not going to be like the vast majority of other states, in fact, the Sports Betting Alliance (which represents DraftKings, FanDuel, and multiple other bigger brands) was actually opposed to Assembly Bill 601 that legalized mobile sports betting.

This is because the Wisconsin law deems that Native American tribes should control the mobile sports betting scene, just as they have done for the retail betting in Wisconsin. It would not be a free market for private companies, like DraftKings, FanDuel, and so on, to enter easily. Even in states where sportsbooks have to get tethered licenses, like New Jersey, New York, Pennsylvania (casinos only), Michigan, and many others, there are options to link up with casinos, racetracks, and even sports teams in some instances. Wisconsin will give the 11 tribes the reins here, and as some already have mobile sports betting apps – which are currently only available within the tribal casino premises – it is highly unlikely they will scrap their product to team up with a major brand.

For the major US sportsbooks, there is also the concern about how the revenue share will look like. If these tribes use the Federal framework of the Indian Gaming Regulatory Act (IGRA), they can retain a 60% share of the net revenue. For what is perceived to be a smaller market, that could severely limit any potential margins.

Assembly Bill 601 Signed Into Law

Wisconsin legalized sports betting, at a retail level, in 2021. This legislation gave gaming compacts to tribal casinos, limiting the betting action to retail locations within these tribal casinos. Compared with the neighboring states of Minnesota, Michigan, Iowa and Illinois, the sports betting framework could not really benefit the state. Sports betting was made legal, yes, but it was highly restricted and not accessible. Also, the sports betting was not regulated at state level, but the tribes could exercise the Federal IGRA laws, gaining full regulatory control of the retail sports betting.

Assembly Bill 601 was signed into law on April 9, and with it, Governor Evers gave the tribes the green light to expand into mobile sports betting. It will not change the current state of affairs, so tribes will still own the monopoly on gambling. Sports betting reps and groups were opposed to the bill, similar to how the iGaming groups tried to protest Maine’s iGaming bill which would have given the tribes full control. However, their efforts failed to sway the Governor in Wisconsin, just like the iGaming reps couldn’t change Maine legalizing online casinos for Tribal Nations.

Tribal Nations in Wisconsin

Wisconsin has 11 Tribal Nations, which were repeatedly referenced in the Governor’s letter about the legalization of AB 601. The Governor made it clear that statewide mobile events and sports wagering would increase gaming revenues, and that these would be given to the Tribal Nations. He mentioned the obligation of the Governor to respect the sovereignty of the tribes, and that the bill helps to improve their quality of life, health, and the safety of their communities.

“Wisconsin cannot afford to continue to leave any Tribal Nation behind.”

After this, he mentioned firmly that he will not accept any solution that “puts a few Tribes on top and forces the remaining Tribes to accept a small share”, stating that each Tribe should benefit in equal shares.

Wisconsin Limited Mobile Betting (Current)

Of the 11 tribes, several already have mobile betting platforms, which are restricted to the premises of the Tribal casinos.

• Bad River Band: Casino (Bad River Lodge and Casino)
• Forest County Potawatomi Community: Casinos (Potawatomi Casino and others), retail and mobile sports betting
• Ho-Chunk Nation: Casinos (Ho-Chunk Gaming Casinos)
• Lac Courte Oreilles Band: Casinos (Sevenwinds Casino), retail and mobile sports betting
• Lac du Flambeau Band: Casino (Lake of the Torches Casino Resort)
• Menominee Indian Tribe: Casinos (Menominee Casino Resort)
• Oneida Nation: Casinos (Oneida Casinos), retail and mobile sports betting
• Red Cliff Band: Casino (Legendary Waters Resort and Casino)
• Sokaogon Chippewa Community: Casino (Mole Lake Casino)
• St. Croix Chippewa Indians: Casinos (St. Croix Casinos) and retail sports betting
• Stockbridge-Munsee Community: Casino (North Star Mohican Casino Resort)

All 11 Tribes have commercial casinos, however only 4 have retail sports betting, and only the Potawatomi, Lac Courte Oreilles and Oneida have mobile betting. The Oneida Nation is the only one with a fully active mobile app in Wisconsin.

Questionable Expansion for Major US Sportsbooks

The Oneida Nation is one of the Tribes that has an advantage here, and it is more likely to expand on its already existing mobile betting infrastructure. While many candidates don’t yet have the technology, and even those that don’t even have retail betting yet, there are difficulties for the bigger sportsbooks to consider here.

Having a maximum of 11 access points is not really a problem, because even the biggest sports betting sectors like that in New Jersey have around 14-18 active licensed sportsbooks. No, the problem is that the Tribes have too much control over the products and distribution, and that they can retain 60% of the revenue by Federal law. Governor Evers was tight-lipped about where these brands would come into the picture.

His letter, which focused on creating equality for all the Tribes to benefit, could also be taken as a sign that major sportsbooks are not going to be welcome in Wisconsin. After all, if one sportsbook, like Caesars, Fanatics or BetMGM decided to take a punt on a Tribe and make a partnership, they would be bringing a much more chiselled and polished product to the market. In comparison with the offerings at the other Tribes, that is.

States with Similar Circumstances

This is why Wisconsin bettors should be cautious about this new sports betting bill; it does not mean they will get markets like the neighboring states of Michigan, Illinois, Iowa, and so on. The closest model you can compare it to is that of Florida. In Florida, sports betting is legal through a tribal compact with the Seminole Tribe. There is no commercial competition, but the Seminole Tribe of Florida doesn’t have a fully independent app. They partnered with Hard Rock Bet, who power the app and provides the sports betting products for the Seminole Tribe.

The Seminole Tribe struck a 30-year deal with the state authorities in Florida, and in exchange, the Tribe has to pay the state $20 billion, including $2.5 billion for the first 5 years. This only allowed the Tribe to have sports betting on tribal lands, including mobile betting on the premises.

But that is Florida, home to 11 major sports franchises including 9 in the Big Four (NFL, NBA, MLB and NHL). The state has a population of over 23 million, and it is one of the richest in the US. Wisconsin, on the other hand, does have 3 major sports team: the Green Bay Packers (NFL), Milwaukee Brewers (MLB), and the Milwaukee Bucks (NBA), but the population and wealth of the state is far below Florida’s.

Other States with Legal Retail But No Mobile Betting

Legalizing sports betting, but just at retail level, is a way that lawmakers have tested the waters with these products. It doesn’t carry the same public welfare and gambling exposure concerns. Though it doesn’t really create much of a revenue model for the states either. The situation is pretty similar in Mississippi and South Dakota, where you can only bet at retail locations.

Washington DC also had a similar structure, yet on quite weird terms. There was a single state lottery sportsbook that had no locational restrictions, but the brands like FanDuel, Caesars and others, had to restrict their mobile apps to a 2-block radius of their partnered retail sportsbooks. For FanDuel that was around Audi Field, and for Caesars, that was around Capital One Arena. Though this was removed in 2024, opening the market to more operators and allowed people to take their mobile betting beyond 2 blocks from the retail locations.

Another strange one is the mobile betting in Nevada. Mobile betting is allowed, with licensed sportsbooks, but you can’t sign up to these online. You have to go in person to a physical location, most likely on the Las Vegas Strip or in the nearby Fremont Street, and find a partnered retail sportsbook. Only there can you sign up to the sportsbook, but after that you are left to your own devices, and can take your sports betting anywhere within state borders.

What to Expect in Wisconsin Going Forward

Whatever route the Tribes decide to take, there is still plenty of time to figure out the details and scale any existing infrastructure. Commentators expect the first statewide mobile apps to roll out later this year, with eyes on the Oneida and Potawatomi Tribes who have a starting advantage here.

Other Tribes are expected to launch their mobile products later, possibly at the end of the year or even in 2027. A major sportsbook brand entering Wisconsin is not entirely ruled out at this stage, because there is no guarantee that any of the Tribes have to stick to the 60% revenue sharing majority as determined by Federal law. They really have all the strings here, and if any of the Tribes with fewer resources find the right terms, they may just be able to strike a deal with a big brand.