GOP leaders bench online sports betting bill amid conservative pushback
MADISON, Wis. (CBS 58) -- Republican leaders on Wednesday, Nov. 19, pulled back a bill that would legalize online sports betting just hours before it was set to come up for a vote in the state Assembly.
The move came as top Republicans were getting criticized by some conservatives, including on talk radio, and as a right-leaning law firm signaled it would consider backing legal challenges to the bill if it became law.
Currently, gambling is illegal in Wisconsin. It is allowed in tribal casinos through federal law and the tribes' compacts with the state.
Assembly Bill 601 would change the definition of the term 'bet' to exclude any wagers made on a phone or mobile device, as long as the device is connected to a server on tribal land.
The bill was on a fast track, clearing the Assembly's state affairs committee by a 10-0 vote last Thursday.
Later that day, the bill was added to Wednesday's Assembly calendar. However, rumblings began spreading Tuesday night GOP leaders were taking the bill off the calendar.
Thirty minutes before Wednesday's session, Assembly Majority Leader Tyler August (R-Walworth) confirmed the bill would not come up for a vote in the upcoming floor session.
"There's really no rush on it," August told reporters. "The Senate's not coming back this week. I had a conversation with a couple members over the weekend that brought up some points I hadn't considered yet, so we're gonna work through those, and I expect we'll be voting on it early next year."
August declined to share specifics when asked what concerns had been raised.
"I'm not gonna get into the details of the conversations I've had with members," he said. "We're working through that right now."
The conservative Wisconsin Institute for Law & Liberty put out a memo last week challenging the legality of a such a measure.
WILL Deputy Counsel Lucas Vebber noted Wisconsin voters in 1993 passed a constitutional amendment limiting gambling in the state.He maintained the only way to legally allow online sports betting would be through another constitutional amendment, which voters would have to approve after the Legislature passed a matching resolution in two consecutive two-year sessions.
"Sports betting is growing in popularity, and if the people of Wisconsin want to change our policy in our state, they absolutely should," Vebber said. "But the way to do that is through a constitutional amendment, not by a wink-and-a-nod look the other way with this legislation."
According to the Wisconsin Ethics Commission, the Milwaukee Brewers and Metropolitian Milwaukee Association of Commerce joined the Ho-Chunk and Potawatomi tribes in lobbying for the bill.
The Brewers did not respond to a request for comment on this story.
Other betting platforms, such as DraftKings and FanDuel also oppose the bill in its current form. They want private businesses to also have access to an online sports betting platform.
Vebber said limiting online sports betting to tribal casinos could also spark a lawsuit. He said WILL would consider joining any legal challenges should they come up.
"If only tribes are allowed to act in this way, it may also be susceptible to a [legal] challenge on that front," Vebber said.
GOP sources in the Assembly told CBS 58 Wednesday the holdup was a lack of Republican support in the Senate.
Senate Majority Leader Devin LeMahieu (R-Oostburg) said little when asked about the bill Tuesday, only sharing GOP senators still needed to further discuss the legislation.
"You know that bill was just introduced a couple weeks ago," LeMahieu told reporters. "We had some initial discussion on it. We’ll continue to work through the process, like we do with any other bill, to see what the support is in the caucus."
Democrats on board...on one key condition
Democratic Gov. Tony Evers has indicated he would support allowing online sports betting, as long as it was under tribal control.
Evers' office did not respond to questions Wednesday about the developments in the Assembly.
Assembly Minority Leader Greta Neubauer (D-Racine) said she supported the bill as it was written, echoing the support for a provision that ensures sports wagering is overseen by the state's tribes.
"I plan to support it," Neubauer said. "We know that our tribes in Wisconsin have the right to control gaming in our state, and right now, that's not happening with online sports betting, so I hope we do pass a bill that puts control of that industry back in their hands."
Betting is big business
More than 30 states currently allow some form of online sports betting. Wisconsin is one of four states that only allow sports betting in-person at tribal casinos.
According to the Wisconsin Division of Gaming's most recent annual report, the state's casinos accepted a total of more than $18 billion in wagers in 2024.
That number includes a wide variety of bets, includes sports gambling but also table games such as blackjack.
According to the state Department of Administration, the state's compact with tribes only allows for aggregate reporting of gaming revenue figures for Class III gaming, which includes sports betting.
As for what's next, August maintained the bill had enough support to pass in the Assembly. He said GOP leaders will continue to work with Republicans who have concerns about the bill and added the bill could come back when the Legislature returns to session in January.
"There's no rush on this," he said. "It's the right thing for the state, and I'm confident we'll get there."