The Wisconsin State Assembly closed out its scheduled floor session Thursday by approving a proposal that would allow online sports wagering under tribal control and by advancing a constitutional amendment targeting the governor’s partial veto authority.

Lawmakers cleared Assembly Bill 601 on a voice vote, moving the measure to the Senate. The legislation would permit online sports betting across Wisconsin through federally recognized tribes that already operate casinos under gaming compacts with the state. While retail sports wagering is currently available at tribal casinos, the bill would expand access to mobile platforms statewide, provided that betting servers remain on tribal land.

The proposal modifies the state’s definition of “bet” so that wagers placed anywhere within Wisconsin would qualify as occurring on tribal property if processed through servers located on those lands. The structure mirrors Florida’s system, where servers are housed on property controlled by the Seminole Tribe. Lawmakers cited the U.S. Supreme Court’s 2024 decision not to take up a challenge to Florida’s arrangement as part of the rationale for the approach.

If enacted, the measure would require updates to tribal gaming compacts and approval from the Bureau of Indian Affairs before online wagering could begin. Both residents and visitors within state lines would be eligible to place bets through tribal-operated platforms.

Supporters argue the shift would redirect betting activity into regulated channels. The bill estimates that legalizing online wagering would bring hundreds of millions of dollars in currently illegal bets into authorized sportsbooks. It states the change “generates new revenue through tribal gaming compacts and reduces consumer risk from offshore operators.”

Wisconsin receives a share of net winnings from tribal casinos, though it does not separately report sports wagering revenue. State figures show shared revenue payments exceeding $66 million in 2024, nearly $66 million in 2023, and close to $57 million in 2022, according to The Center Square.

Revenue Structure Draws Pushback

AB 601 requires tribes offering mobile betting to retain 60% of the revenue generated from online wagers. That allocation has prompted objections from the Sports Betting Alliance, whose members include major national operators.

SBA representative Damon Stewart addressed lawmakers last year, warning about the financial burden the model would impose. “Online sports betting is a low-margin and capital-intensive business. It is simply not economically feasible for a commercial operator to hand over 60% just for the right to operate in the state,” Stewart said. “That is why Wisconsin adults would not be able to use the national brands they see advertised on national TV every day.”

During committee discussion, Rep. Robert Wittke, R-Caledonia, pointed to Stewart’s testimony in questioning whether leading brands such as DraftKings, FanDuel, BetMGM, Fanatics and Bet365 would participate under the proposed framework. Wittke said, “I think our citizens in Wisconsin are better served by keeping this new platform within our current gambling structure.”

Opposition to the bill has come from varied corners. Some conservative groups object to gambling on principle. The Wisconsin Institute for Law and Liberty has argued the measure conflicts with state and federal law. WILL attorney Dan Limington described the legislation as “sneaky” on social media and contended that any expansion of gambling should occur through a constitutional amendment. He also argued the proposal would create an unfair monopoly for tribes.

Lawmakers also discussed the rise of prediction markets offering sports event contracts. Assembly Majority Leader Rep. Tyler August said online wagering could help address concerns that such markets bypass tribal sovereignty requirements embedded in Wisconsin’s gaming framework.

The Senate now has about a month to act on AB 601. If senators approve the bill without changes, it would go to Gov. Tony Evers, who has previously indicated openness to signing online sports betting legislation. Amendments would require the Assembly to reconsider the measure. Failure to pass it this session would mean reintroduction in 2027.