Wisconsin Online Sports Betting Proposal Delayed Until 2026

A proposal aimed at legalizing online sports betting in Wisconsin has been removed from the Assembly floor agenda as lawmakers now shift their focus to the full legislative session scheduled for early 2026. During a closed caucus on Wednesday, Dominic Ortiz, CEO of Potawatomi Casinos & Hotels, shared on The New Normal podcast that the vote on Assembly Bill 601 will take place in January. Ortiz emphasized that the legislative framework is designed to create a 'fair playing field and unites the tribes,' even as the Sports Betting Alliance is advocating for an alternative approach. nn'We’re about partnership, not ownership,' Ortiz remarked on the podcast. 'The clear indication from the SBA is if they can’t have their rules, they’re going to come in and burn down the market.' nnAssembly Majority Leader Tyler August confirmed the bill's removal during a press conference on Wednesday, indicating that the Assembly would have approved the proposal if it had been voted on. The Senate is not set to reconvene before the January session. nnIn a memo sent this week, August urged his colleagues to support the bill as a means of retaining sports betting revenue in Wisconsin amid the growing influence of prediction markets nationwide. 'There’s really no rush on this,' he stated. 'I had a conversation with a couple of members over the weekend that brought up some points that I hadn’t considered yet, so we’re going to work through those, and I expect that we will be voting on it early next year.' nnCurrently, in-person sportsbooks are legal in Wisconsin thanks to agreements made in 2021 by Governor Tony Evers to amend tribal compacts allowing sports betting. Evers articulated on UpFront Sunday that his ultimate aim is to maintain tribal control over sports betting. nnThe new proposal would establish a 'hub-and-spoke system' for online betting, permitting the 11 Wisconsin tribes to collaborate with sportsbook operators, provided the server is located on tribal land. This model resembles the setup that enables Florida's Seminole tribe to monopolize sports betting through Hard Rock Bet. nnAccording to Ortiz, both the Milwaukee Brewers and Milwaukee Bucks fully endorse the tribal proposal, which aims to generate revenue to counter inflation and rising expenses. The Potawatomi have long been sponsors of these teams. nnShould the bill be passed, it would necessitate the tribes to renegotiate their gaming contracts with the state and also seek approval from the federal Bureau of Indian Affairs. nnEarlier this month, discussions on the expansion of sports betting began in Wisconsin. Senator Howard Marklein noted to the Senate Committee on Agriculture and Revenue that the proposal would legitimize activities that many residents are already engaging in illegally. nnWhile the Sports Betting Alliance, which consists of leading national sportsbook operators, is in favor of expanding sports betting in Wisconsin, it opposes the current legislative proposal. A representative from the SBA pointed out that the proposed structure would require operators to allocate 60% of their revenue to partner tribes, suggesting that the tribal-commercial partnerships established in Michigan serve as a better model. nnOrtiz also pointed out that the emergence of national sportsbook operators like DraftKings and FanDuel, which are planning to introduce prediction markets, poses a potential threat to Wisconsin's market. These prediction markets are regulated by the Commodity Futures Trading Commission, allowing them to operate on a national scale. nnThere are ongoing court cases in which state regulators contend that sports event markets contravene state gaming laws. Additionally, various tribal lawsuits, including those from Wisconsin’s Ho-Chunk Nation, argue that prediction markets breach the Indian Gaming Regulatory Act. Regulators have warned sportsbooks that their licenses might be at risk if they offer prediction markets. nn'They have indicated and made public statements that they can and will operate prediction markets where sports betting is not legal,' Ortiz stated regarding the commercial sportsbooks. 'Their clear intent is to have ownership of Wisconsin. They’re not here to be our partner.'