Florida Lawsuit Could Have Impact on the Future of Wisconsin Sports Betting

A new lawsuit challenging the legality of Florida sports betting may end up having an impact on the future of Wisconsin sports betting.

To be sure, the fallout is very much theoretical. More than anything, it is predicated on the interest of expanding sports betting in Wisconsin. The current setup, which allows for wagering on tribal lands, is not in danger of being challenged if The Sunshine State proves to have violated the constitution with their current gaming compact.

Basically, sports betting as you currently know it in The Badger State is totally safe. But we know there is interest among officials—as well as residents—in broadening operations. As of now, customers can only place bets at on-site sportsbooks. Though some casinos offer Wisconsin sports betting apps, users must be on tribal property to process transactions.

Expansion would seek to open those terms. Either The Badger State would allow online sports betting sites in the United States to independently enter the market, or they could look to mirror the current setup championed by Florida and their exclusive operator in The Seminole Tribe.  

Here’s Why Florida Matters to the Wisconsin Sports Betting Market

Before digging into the lawsuit that challenges Florida sports betting, let’s first consider why Wisconsin should care. Overall, it comes back to the interpretation of sports betting laws in The Sunshine State.

As things stand, the expansion of Wisconsin sports betting into the online arena requires a constitutional amendment. That is not only subject to congressional approval, but it’s also predicated on voter support. Beyond that, the legalization of Wisconsin online sports betting would mean increasing the in-market competition for tribal nations. And it can be tough for them to keep pace with the DraftKingses and Fanduels of the world.

However, Florida sports betting presently offers a loophole. Much like the Wisconsin sports betting compact, the Seminoles’ deal with The Sunshine State stipulates they can only offer wagering on tribal property. And yet, they offer online Florida sports betting to anyone of legal age in the state. This is to say, you can access their Hard Rock sports betting app even when off tribal property.

So what gives? Well, the Seminole Tribe argues that their app is an extension of tribal property, because that’s where the servers running it are located. This interpretation was previously contested—for years. But the most recent non-ruling from the Supreme Court of the United States paved the way for them to continue operating in this capacity.

That is essentially the roadmap to Wisconsin offering online sports betting without a constitutional amendment. If tribal nations put the servers running apps on their property, they can argue their sports betting sites themselves are an extension of it. Going this route also ensures they needn’t open the market to a multitude of corporate operators. Just as the Seminoles have partnered with Hard Rock Bet, Wisconsin tribes could look to uniformly team up with a singular service provider.

The Interpretation of Florida Sports Betting Operations is Being Challenged Again

Over the past year or so, many have started wondering whether Wisconsin would look to mirror Florida’s own sports betting industry. For now, it is unclear how appealing that course would be. And projecting forward is even harder given the newest lawsuit.

Filed by Protect the Constitution LLC, the filing argues that The Sunshine State needed a constitutional amendment of its own for the Seminole Tribe to offer sports wagering online. Here is what the lawsuit says, courtesy of Jim Saunders of WFTV 9 Orlando:

“Today, online sports betting occurs throughout the state of Florida. But no citizens’ initiative has ever been held to provide authorization. And the people of Florida have never been allowed to exercise their constitutional right to decide whether sports betting should be authorized throughout the state.’ The new lawsuit seeks a declaratory judgment and an injunction through the more-normal process of going to circuit court. It names as defendants the state, the Florida Gaming Control Commission and the commission’s members.”

Because the filing is so fresh, it is not immediately clear whether it has legs. If it does, though, it will torpedo Wisconsin’s chances of expanding sports betting operations without a constitutional amendment.

Online Sports Betting in Wisconsin will be Up in the Air Regardless

Of course, interest in Wisconsin online sports betting is so far lukewarm. Plenty of key stakeholders admit it’s inevitable, but few seem to be actively pushing for it.

Florida’s blueprint provided an efficient path to changing that, if and when the time comes. But that option may potentially be unavailable. It all depends on how the lawsuit shakes out. If the interpretation of the current laws holds up, yet another precedent will be set. That would open the floodgates for more states with on-site-only wagering to follow Florida’s lead.

Now, if the lawsuit is successful or found to hold merit, it will make the launch of Wisconsin sports betting online exponentially harder and more time-consuming. That may not seem problematic at the moment, when online sports betting doesn’t top the agenda. But constitutional amendments are generally only voted up every two years. The next electoral ballot will be in 2026, and it doesn’t seem like Wisconsin will have a proposal on the table by then.

As such, the state is looking at 2028 or even 2030 as a potential timeline for online rollout. It may even be longer. Then again, if this latest Florida lawsuit doesn’t hold up, Wisconsin will retain the option of expediting the process, if and when they so choose.

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