A pivotal vote on Wisconsin’s online sports wagering bill was unexpectedly shelved Wednesday, leaving the future of the proposal in doubt. Assembly Minority Leader Greta Neubauer revealed the postponement, expressing uncertainty about the precise reason behind the decision.
The delay reportedly stems from objections raised by eight Republican Assembly members, a move that pushed support below the critical threshold of 50 votes within the majority party. A longstanding rule dictates that a bill requires at least 50 affirmative votes from the majority party before it can even be scheduled for consideration.
Despite the setback, Neubauer voiced her support for Assembly Bill 601, emphasizing the importance of tribal control over gaming within the state. She argued that current regulations fail to grant Wisconsin’s tribes the authority they deserve in the burgeoning online sports betting landscape.
Representative Tyler August recently urged lawmakers to pass the bill, warning of a growing loophole. He highlighted the rise of “prediction markets”—platforms offering similar services to sportsbooks but operating under federal oversight—and the potential for these entities to dominate the market without Wisconsin’s safeguards.
August cautioned that inaction would allow national prediction platforms to flourish unchecked, bypassing Wisconsin’s regulatory framework and consumer protections. He championed AB 601 as a solution, channeling activity into a regulated, Wisconsin-based system that respects tribal sovereignty and keeps revenue within the state.
The proposed legislation seeks to redefine “bet” to permit tribes to offer mobile sports wagering, provided bettors are located within Wisconsin and sportsbook servers reside on tribal land. This amendment would effectively allow online wagering despite the state’s existing ban, operating within the framework of existing tribal compacts.
The emergence of prediction markets, particularly during football season, adds urgency to the debate. Platforms like Kalshi and Polymarket offer “event contracts,” allowing users to wager on outcomes similar to traditional sportsbooks, but crucially, these markets operate largely untaxed by states.
Wisconsin’s bill aims to establish a system of tribal online sports wagering subject to revenue-sharing agreements with the state’s eleven recognized tribes. This would ensure that the state benefits financially from the growing industry, unlike the untaxed prediction markets currently gaining traction.
Even if passed by the Assembly, the bill still faces hurdles, requiring approval from the Senate and the signature of Governor Tony Evers. However, Evers has indicated his willingness to support legislation that preserves tribal control over gaming within Wisconsin.
