Wisconsin is set to legalise online sports betting following the Senate’s legislative approval of the AB601 bill on a 21-12 vote on Tuesday.
This approach, centred on a “hub-and-spoke” model requiring that all online bets be processed through servers located on tribal sovereign land, aligns with federal court recognition of tribal gaming.
Online sports betting bill gains momentum after months of debate
Lawmakers have been working toward this outcome for several months, with AB601 first gaining traction late last year before being carried into the 2026 legislative session. The Assembly advanced the bill earlier this year with bipartisan backing, reflecting ongoing efforts to channel existing offshore betting activity into a regulated framework.
However, debates around tribal exclusivity and revenue-sharing requirements have remained a key point of contention throughout the process.
Tribal model raises barriers for commercial operators
Supporters argue that the law will mitigate offshore betting and direct substantial revenue into regulated tribal pools, while critics caution that it may exclude major national sportsbook operators and affect tax revenue forecasts.
Key to the legislation is the requirement of the Indian Gaming Regulatory Act that tribes must retain at least 60% of net gaming revenues under compacts. According to the Associated Press, Damon Stewart of the Sports Betting Alliance stated in testimony that, “It is simply not economically feasible for a commercial operator to hand over 60% or more of its revenue to an in-state gaming entity, just for the right to operate in the state.”
This provision may limit participation by prominent national betting brands, potentially changing the competitive landscape in Wisconsin.
Political divisions and tribal consent issues remain unresolved
Not all of Wisconsin’s 11 federally recognised tribes have voiced support for the proposed structure. Governor Evers has expressed reservations concerning the absence of unanimous tribal consent, which highlights potential intra-tribal divisions.
The bill has passed both state legislative chambers and is now pending Governor Tony Evers’ signature. If enacted, Wisconsin would join a growing list of states permitting online sports betting, albeit with a distinctive regulatory framework that could limit involvement by national sportsbook operators and alter anticipated revenue models for the state.
Original article: https://igamingbusiness.com/sports-betting/wisconsin-advance-online-sports-betting-bill/
