Wisconsin Online Sports Betting Outlook is Bleak

A bill to legalize Wisconsin online sports betting recently stalled out during committee discussions. And now we know why: concern from conservative lawmakers.

Support for the initiative to legalize online sports betting in Wisconsin has always been a question mark. The topic is inherently divisive. But as the push toward the digital model accelerated, it seemed as if more stakeholders were on the same page. Especially knowing that tribal operators appear to be on board with the proposed Wisconsin online sports betting model.

Still, according to a recent report from the Milwaukee Journal Sentinel, the momentum building toward this initiative isn’t as strong as many believe. This is particularly true when it comes to general sentiment among conservatives.

“The bill was pulled from the state Assembly's calendar hours before a scheduled vote Nov. 19, amid pushback from conservative groups and questions from Republican lawmakers,” the report from the Milwaukee Journal Sentinel’s Frank Vaisvilas, Jessie Opoien and Jeff Bollier reads. “Assembly Majority Leader Tyler August, R-Walworth, told reporters he plans to revisit the issue when the Legislature returns early next year.

Specific concerns have yet to be officially highlighted as a result of this decision. But comments from lawmakers and those close to the situation are starting to paint a crystal-clear picture. And the end result does not bode well for Wisconsin online sports betting legalization.

What Would Wisconsin Online Sports Betting Look Like?

For those unfamiliar with the Wisconsin online sports betting proposal, let’s first lay out the parameters of this bill. Many assume that it allows all online sports betting sites in the United States to enter the market. That isn’t actually true.

The Wisconsin online sports betting bill instead seeks to preserve tribal exclusivity while adding the online element. The proposal is being compared to sports betting in Florida. And rightfully so. The Sunshine State currently only licenses the Seminole Tribe to offer online sports betting. They provided these services through their Hard Rock Bet app.

Notably, though, Florida online sports betting legalization did not require a constitutional amendment. It was instead folded into the gaming compact between the state and the Seminole Tribe. And technically, it wasn’t even folded into it. Online sports betting in Florida exists almost entirely because of the Seminole Tribe’s interpretation of the law.

Under their gaming compact with the state, they can offer sports betting on tribal property. At first glance, this reads like every wager must be placed on-site. However, the Seminoles have argued that the servers operating their sports betting app are on tribal property. In turn, they believe this makes their app an extension of tribal property.

This interpretation has not held up without push-back. Multiple lawsuits have been filed challenging it. At one point, all Florida sports betting operations were shuddered for over a year. So far, though, the Seminole Tribe’s view of the gaming compact has held up.

This brings us back to the Wisconsin online sports betting bill. The setup would be similar to Florida’s, except it’s attempting to formalize the interpretation. So rather than leaving it up for debate, viewing a sports betting app as an extension of tribal property would be legal according to the letter of the law.

Wisconsin Lawmakers Seem Worried About Adverse Consequences of Online Sports Gambling

The question everyone’s asking as the Wisconsin online sports betting bill billows in the win is simple: Why?

Yes, legal sports betting remains a divisive topic. But Wisconsin has already green lit it. A crescendo of opposition over expansion feels counterintuitive—particularly when, again, the bill preserves tribal exclusivity.

Based on the Milwaukee Journal Sentinel’s reporting, it seems that unintended consequences of online sports betting are chief among potential concerns. As that piece explains:

“During a Senate committee meeting about the bill earlier this month André Jacque, R-New Franken, said he’s not comfortable with expanding gaming in Wisconsin. He said sports betting, in particular, can be manipulated easily with insider information, as has been alleged recently with charges of rigging against an NBA assistant coach and a handful of players…Jacque said he’s also concerned with making gambling more easily accessible by phone and increasing the chances of harmful gambling addictions.”

Both points made by Jacque are valid. When it comes to worrying about sports betting scandals, though, context is everything. The influx of allegations is no doubt problematic. But it also proves that the industry’s regulatory systems are working. While they will never be weeded out entirely, this would remain true even if sports betting weren’t legal.

To be sure, the scandals matter. At the bare minimum, they should prompt additional discussion on player props. Those are the wagers that can be most easily manipulated.

Does Online Sports Betting Lead to More Problem Gambling?

Mr. Jacque’s concern over the potential increase in problem gambling is going to hit harder. That makes sense. Markets that legalize sports betting always experience an uptick in reports of gambling addiction.

There isn’t as much data on what happens when a retail market expands to include online elements. But it stands to reason that the trend would hold up as well. Accessibility begets more volume, and more sports betting volume increases the number of potential issues.

Proponents of Wisconsin online sports betting argue that addiction won’t meaningfully increase. Senator Howard Marklein, specifically, has said illegal online sports betting activity will prop up addiction even without legalization. This logic isn’t entirely sound. It is partially true, but we’d be remiss to think that just as many people bet illegally as they do when gambling is legalized.

At any rate, the division over this topic suggests Milwaukee online sports betting won’t be legalized in 2026. On the flip side, lawmakers are clearly thinking about it. So there’s also a chance that the tenor of discussions will change.

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