Wisconsin Sports Betting Law Facing Constitutional Challenge From WILL

Key Points

  • The conservative Wisconsin Institute for Law & Liberty (WILL) has filed a lawsuit to strike down the state’s newly enacted mobile sports betting law
  • WILL claims Assembly Bill 601 violates a voter-approved 1993 constitutional amendment restricting gaming expansion, as well as equal protection doctrines
  • The lawsuit creates immediate legal uncertainty for Wisconsin's mobile sports betting rollout, which has not yet gone live

A conservative legal group has filed a lawsuit to block Wisconsin’s new mobile sports betting law, arguing the measure signed by Gov. Tony Evers (D) in April violates the state constitution.

Wisconsin online sports betting
The Vince Lombardi Statue outside Lambeau Field in Green Bay. The state of Wisconsin is facing a legal challenge from a conservative law firm over a recently signed sports betting bill. (Image: Shutterstock)

Representing two taxpayer groups, the Wisconsin Institute for Law & Liberty (WILL) filed a lawsuit arguing the state’s new sports betting law violates a 1993 constitutional amendment prohibiting legislative gambling expansion. The suit also alleges the law violates equal protection principles by granting exclusive gaming privileges based on race.

“Thirty-three years ago, Wisconsinites expressed through a constitutional amendment that the Legislature may not expand gambling in any form,” notes WILL associate counsel Kirsten Atanasoff. “Neither lawmakers nor Governor Evers are allowed to flout that constitutional limit. This lawsuit ensures that elected officials remain accountable to the people of Wisconsin by upholding the constitutional limits the people, themselves, called for.”

The bill signed by Evers grants Wisconsin’s 11 federally recognized tribes the ability to offer mobile sports wagering in the state.

Case Could Disrupt Potential Monopoly

When signing Assembly Bill 601 (AB601), Evers emphasized the need for all Wisconsin tribes to benefit equitably from online sports betting. He cautioned that a few dominant operators could capture the market, leaving smaller tribes behind.

Concerns also extend to the commercial gaming industry. There’s talk that Wisconsin tribes could partner with operators such as DraftKings and FanDuel to get mobile betting off the ground there, but the companies aren’t committed due to unfavorable revenue-sharing proposals.

The Sports Betting Alliance (SBA), an industry trade group, argues that an unwillingness to work with highly visible operators could hurt the tribes, the state and sports betting consumers.

The legislation signed by Evers drew inspiration from the model used in Florida in which the Seminole Tribe’s Hard Rock Bet has a monopoly over sports wagering in that state.

Representing the Brown County Taxpayers Association and Citizens Defending Liberty, the suit brought by WILL could challenge a potential tribal monopoly on sports wagering in Wisconsin. Mobile betting isn’t yet live there, but there are some brick-and-mortar sportsbooks at land-based casinos run by tribes in the state.

WILL Says OSB Isn’t Supported in Wisconsin

The WILL suit may find support in the court of public opinion because, as polling suggests, a substantial majority of Wisconsin voters aren’t in favor of online sports betting (OSB).

“With Governor Evers preparing to negotiate tribal gaming compact amendments, the lawsuit seeks to stop the law before statewide mobile sports betting launches,” notes WILL. “A recent Marquette University Law School Poll found that 64% of Wisconsinites oppose legalizing online sports betting.”

Todd Shriber
Todd Shriber Financial Reporter

Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org.

Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019.

Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com.

He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better.

Contact Todd at todd.shriber@casino.org.

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