Wisconsin Facing Sports Betting Fight with Right-Leaning Law Firm

Five months after Gov. Tony Evers (D) signed legislation permitting sports wagering in the state, Wisconsin is facing a lawsuit from a conservative firm that believes the bill signed by the governor violates the state’s constitution.

On behalf of two taxpayer associations, the Wisconsin Institute for Law & Liberty (WILL) filed a suit which notes that voters amended the state constitution in 1993 to prohibit the legislature from authorizing gaming expansion, except for in rare circumstances, adding that the new law violates the Equal Protection Doctrine because it extends benefits based on race.

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 he signed Assembly Bill 601 (AB601) into law, Evers was quick to note that he wants to see Wisconsin tribes enjoy the potential revenue spoils of online sports betting in equitable fashion, expressing concern that some big players could control the economics while leaving scraps for smaller tribes.

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.”