Wisconsin legislators are preparing for a pivotal vote on whether tribal nations should be allowed to offer statewide mobile sports wagering, a decision that one of the bill’s sponsors argues will determine who controls the state’s rapidly evolving betting landscape. With the Assembly scheduled to take up the measure on Wednesday, concerns are mounting that national prediction market operators could quickly dominate if state law remains unchanged.
Lawmaker Warns of Consequences if Bill Fails
In a memo circulated to colleagues, Rep. Tyler August, R-Walworth, cautioned that hesitation from lawmakers would create a regulatory vacuum. According to August, that gap would allow national prediction market companies to expand aggressively in Wisconsin, operating without the consumer safeguards and oversight built into the state’s tribal gaming compacts.
“If we leave a gray area in state law, national prediction platforms will fill it without our compact framework, Wisconsin oversight, or Wisconsin consumer safeguards,” he wrote. “AB 601 does the opposite: it channels activity into a regulated, Wisconsin-based, compacted environment with clear jurisdiction and accountability. […]”
The proposal still must pass the Senate and receive approval from Gov. Tony Evers, who has stated he supports legislation that keeps gaming activity tied to the tribes. That backing could prove influential as lawmakers weigh how quickly prediction markets are developing.
Bill Would Expand Online Betting Under Tribal Compacts
Under the measure, Wisconsin’s definition of a “bet” would be revised so that the state’s 11 tribes could offer online sports wagering, provided bettors are physically within Wisconsin and servers are located on tribal land. The approach would align mobile sports wagering with existing tribal gaming compacts that already authorize sports betting and casino gambling on tribal property, despite the broader statewide prohibition on betting.
The push comes as prediction markets have surged during the fall sports season. Platforms like Kalshi and Polymarket offer contracts mirroring traditional wagers, from football matchups to election results. Unlike tribal sports wagering, these markets are federally regulated through the Commodity Futures Trading Commission and do not generate tax revenue for Wisconsin. Tribes would instead pay the state through revenue-sharing agreements that require approval from the U.S. Department of the Interior.
Activity levels on these platforms highlight the stakes. Kalshi alone handled $230.2 million in Week 11 NFL trading and recorded $1.3 billion in activity during the week of Nov. 3, a sharp increase from $900 million in early October.
Legal Disputes and Industry Moves Underscore Urgency
The Ho-Chunk Nation has sued Kalshi, alleging it is operating illegally in Wisconsin, joining a series of similar lawsuits nationwide that argue prediction markets function like unregulated sportsbooks. Adding to the pressure, FanDuel and DraftKings recently left the American Gaming Association and announced major investments in prediction market offerings in states lacking legalized mobile wagering.
August emphasized the speed of this shift, writing, “While we debate a narrow clarification that keeps wagering inside Wisconsin’s compact system, large national platforms are racing to roll out ‘prediction market’ apps that let users trade real-money contracts on sports, politics, and economic data.”
His memo also included a 15-page legal analysis from Attorney Ryan Walsh on behalf of the Forest County Potawatomi Community.
Source:
“Lawmaker: Prediction markets coming if Wisconsin doesn’t approve sports betting”, thecentersquare.com. November 19, 2025
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