Top Sportsbooks Reject Wisconsin Mobile Betting Bill Over High Revenue Share
The Sports Betting Alliance (SBA), representing major US sports betting operators, has stated that the current proposal for mobile sports wagering in Wisconsin creates costs too high for them to operate profitably. The SBA, whose members include DraftKings, FanDuel, BetMGM, Fanatics, and Bet365, opposes the provision that would grant Wisconsin tribes 60% of gross mobile sports betting revenue.
Damon Stewart, representing the SBA, called the 60% revenue share an “economically unfeasible” cost for commercial operators. Stewart noted that online sports betting is a “low margin, capital-intensive business.” He explained that surrendering 60% of gross revenue to an in-state entity just for the right to operate would prevent major national brands from entering the market. If the bill fails, consumers would continue using illegal offshore sites or traveling across the state line to Illinois to use legal national brands.
Economic Barriers and Proposed Model Concerns
The SBA criticized the state’s proposed “hub and spoke” model, which is similar to structures in Arkansas and Florida. Under this model, tribal entities control the central servers (the “hub”) for statewide mobile betting. The SBA argues that this setup, without the participation of national brands, “is not the best model for consumers.” Stewart stated that the current bill “doesn’t get us there” regarding full-state mobile wagering.
Despite their rejection of the current terms, the major operators expressed a desire to partner with the tribes. Stewart said, “We want to tether with them” and asked for “the chance to work with the tribes.” The current legal mechanism would require technically changing the definition of a “wager” in Wisconsin law to allow mobile bets processed on tribal land. If passed, the state would need to renegotiate gaming compacts, subject to approval by the Bureau of Indian Affairs.
Tribal Support and Regulatory Context
The legislation has support from state sporting teams, including the Milwaukee Brewers, Milwaukee Bucks, and Green Bay Packers. Representative Tyler August, R-Walworth, supported the measure, saying it is “good for the tribes” and “good for the consumers.”
Advocates argue that expanding mobile betting would move an estimated $1 billion currently wagered on illegal sites into the regulated market, providing consumer and operator protection. However, Jeff Crawford, Attorney General for the Forest County Potawatomi Community, criticized the SBA’s position.
Crawford took “exception” to the SBA’s implication that the tribes “do not have the capability of operating a statewide sportsbook.” Concerns were also raised by lawmakers and the SBA that the bill appears to be “a bit of a rush,” noting that bill sponsors had not yet consulted with Attorney General Josh Kaul on the draft.
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