Wisconsin is on the cusp of legalizing online sports betting, with Assembly Bill 601 (AB 601) leading the charge toward full-scale mobile wagering within the State.
Last week, the State Assembly passed AB 601 by a vote of 13-8, and the proposal is now on its way to the Senate for further consideration.
Should it succeed in the Senate, the motion would bring about legal internet-based sports wagering, under tribal oversight, by amending specific wording within Wisconsin's legal statutes that prevents certain types of gambling.
Retail sports betting is already exclusively available in the Badger State via tribe-owned venues; the legalization of AB 601 would build on existing frameworks for commercial sports betting.
However, unlike similar bills in states with commercial operators, AB 601 would require support from the Bureau of Indian Affairs – potentially extending the legalization and implementation timeline.
What does AB 601 propose?
Backed by sponsors such as Assembly Majority Leader Tyler August, Rep. Kalan Haywood, Sen. Howard Marklein and Sen. Kristin Dassler-Alfheim, AB 601 seeks to unwind certain wording within existing Wisconsin law designed to prohibit online wagering.
Specifically, the motion would allow sports betting for mobile players, physically located in Wisconsin, through online platforms supported by tribal groups. Operator servers would also be required to be stored on tribal lands.
This is in contrast to the current in-person-only framework, where players may only place sports wagers at select tribal premises.
In short: AB 601 plans to create a legal structure for online sports betting that builds upon the existing tribal-led gambling industry in Wisconsin.
How AB 601 might reshape Wisconsin law
Under current regulations, placing a wager via online services is considered a Class B misdemeanor – offenders may be subject to prison time, fines worth up to $1,000, or both, upon conviction.
If AB 601 is confirmed as law, the Bill would alter the legal definition of a 'bet' or 'wager' to exclude specific actions from being punishable by prosecutors.
As stated in the proposal, bets will no longer be considered an offense when involving: "an event or sports wager made by a person physically located in this state using a mobile or other electronic device if the server or other device used to conduct such event or sports wager is physically located on a federally recognized American Indian tribe(s) Indian lands."
As long as the player is only interacting with servers based on tribal land while physically located in the state, wagering would be deemed a legal activity.
Further, AB 601 outlines a need for all sports betting conduct to comply with contemporary gaming compacts and adhere to the federal Indian Gaming Regulatory Act (IGRA). Thus, any amendment would necessitate a federal review.
Commercial sportsbooks unlikely to enter State
Although AB 601 paves the way for legal mobile sports betting, players are unlikely to gain access to national stalwart platforms, such as DraftKings and FanDuel.
This is due to critical agreements between the state and federally recognized tribes signed in the 1990s – per the accords, tribal entities benefit from exclusive rights to provide certain gambling products.
According to an Assembly Representative, Robin Vos, it is anticipated that online sports wagering would also fall under the exclusive jurisdiction of tribes.
But even if commercial operators are allowed to compete in Wisconsin's sports betting market, steep tax duties could prove overly prohibitive.
Wisconsin sports betting tax plans
AB 601 sets out a 60% revenue share agreement for all sports betting operators in the state, with proceeds directed toward tribal groups.
As reported by SBC Americas, the Sports Betting Alliance (SBA) criticized Wisconsin's steep operator duty last year – highlighting that its proposed structure would clash with established financial and business preferences of non-tribal firms.
"Online sports betting is a low-margin and capital-intensive business. It is simply not economically feasible for a commercial operator to hand over 60% just for the right to operate in the State.
"That is why Wisconsin adults would not be able to use the national brands they see advertised on national TV every day," expressed SBA speaker Damon Stewart.
FanDuel, DraftKings, BetMGM, bet365 and Fanatics each sit under the SBA umbrella.
Therefore, AB 601 would likely see tribal operators strengthen their grip on the Wisconsin market by gaining control of the proposed sports betting sector.
Sports betting to combat illegal and prediction markets
The rise of prediction markets has led to a common query from lawmakers: if people can already stake money on sports events, why shouldn't the state benefit?
Prediction operators like Kalshi and Polymarket do not immediately or directly contribute to local state taxes, as such entities are regulated by the Commodities Futures Trading Commission (CFTC).
Every penny spent and taxed on these platforms goes into the federal government's pockets rather than local amenities.
Similarly, offshore online sportsbooks are not beholden to domestic laws or charges either – meaning players interested in 'traditional sports markets' can technically access these platforms to place bets.
Such concerns have been voiced by Rep. Tyler August throughout AB 601's journey. The Assembly Majority Leader has long argued that legal sports betting would deliver dual benefits for Wisconsin by diminishing the appeal of offshore sites and reinvesting tax revenue into regional services.
When will AB 601 pass?
Despite significant support from tribal groups and certain state officials, AB 601 is far from a shoo-in to pass this year. In 2025, the same bill failed to pass – yet reemerged in February 2026 comprising limited modifications.
Its reading and subsequent success in the State Assembly do not equate guaranteed success, however. The Senate Floor must vote in favor of the motion before March 19, 2026; failure to consider AB 601 before the current session adjournment date would mean no framework for online sports betting can be enacted before the next legislative session in 2027.
Perhaps most important is that AB 601 must advance without any changes. Even a minor alteration would force the Bill backwards to the lower chambers, further delaying the legalization process during an already constrained timeline.
If the Bill does move forward, through the Senate without modification, its next stop is Governor Tony Evers' office. Evers has demonstrated warmth to the idea of legalizing mobile sportsbooks in Wisconsin, and would be unlikely to veto any sports betting measure already approved by the Senate.
Whether Wisconsin moves toward a legal sports betting market will become clear by mid-March.
