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Two neighboring states take opposite approaches to regulating sports betting

Vishakha Srivastava by Vishakha Srivastava
April 26, 2026
in Sports
Two neighboring states take opposite approaches to regulating sports betting
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While Wisconsin is opening the door to mobile betting statewide, in Ohio an initiative is gaining momentum to scale back online betting and return to an in-person model. Together, these opposing moves paint a broader picture: lawmakers are taking a closer look at the risks of gambling and prediction markets, and no one has simple solutions here.

Governor Tony Evers signed Assembly Bill 601 (AB 601) on April 10, 2026, legalizing mobile sports betting across Wisconsin through tribal operators.

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Who will be allowed to take online bets

Mobile betting will be offered by the state’s 11 federally recognized tribes. Since November 2021, a retail-only, in-person model at brick-and-mortar locations has been in place here, and the new law expands the format into the digital space. In essence, Wisconsin is turning tribal gaming facilities from local venues into operators of statewide online infrastructure.

Servers located only on tribal lands

All sportsbook apps must operate through servers physically located on tribal lands. This setup, known as a hub-and-spoke model, means that a user can place bets from anywhere in the state, but data is processed under the tribe’s jurisdiction. A similar system is already operating in Florida, where the operator is the Seminole Tribe. This approach makes it possible to keep legal control over gaming activity specifically on tribal land.

Money and tribal sovereignty

The law secures 60% of betting revenue for the tribes. Forest County Potawatomi Community Chair Brooks Boyd noted that the document respects tribal sovereignty and keeps the economic benefits in Wisconsin. Bipartisan support for the bill strengthened its symbolic weight.

How this could reshape the sportsbook market

However, such a revenue structure could deter major national operators. Industry observers note that with a 60% tribal share, margins for FanDuel and DraftKings would be too thin, and these brands may not be in a hurry to enter the Wisconsin market.

Launch won’t happen overnight—and the gray market is already here

It will take time to go from a signed bill to live apps. To get started, it is necessary to:

  • revise the gaming compacts with each of the 11 tribes;
  • obtain approval from the federal Bureau of Indian Affairs for each agreement.

Evers emphasized the importance of “fair terms” for all tribes, which further complicates negotiations. Realistic estimates allow that a full rollout will take years. Meanwhile, “gray” platforms are already targeting state residents, and this situation turns the process into a race against time.

A problem with global reach

This is indeed a serious problem, because betting platforms with international licenses are actively attracting state residents. On the one hand, such resources are available not only in the U.S. but worldwide, from the UK to Rwanda. This is indirectly confirmed by the Rwanda betting sites listings, which include major betting operators. On the other hand, players cannot count on legal protections from the state precisely because they are placing bets in a legal gray area.

$43 million a year—and the fight against the opioid crisis

According to the Tax Foundation, a properly regulated market could generate about $43 million annually. The funds are planned to be directed to mental health programs and addressing the opioid crisis, which acutely affects both tribal communities and the state’s entire population. In 2023, Wisconsin recorded 1 422 opioid overdose deaths; in 2024, the figure fell to 817, however the need to fund prevention and rehabilitation has not gone away.

Ohio as Wisconsin’s “mirror image”

In neighboring Ohio, three lawmakers (Majority Whip Riordan McClain, Gary Click, and Jonathan Newman) are advancing an initiative that could strip the state of online betting and limit betting to just four brick-and-mortar casinos. The political signal is reinforced by the fact that Governor Mike DeWine previously publicly expressed regret about legalization, laying the groundwork for a possible policy reversal.

The industry and politics around betting

Connecticut Democratic Senator Richard Blumenthal sent letters to the NFL, the NBA, and other leagues seeking information about partnerships with sportsbooks. His phrase “the ugly takeover of sports by gambling” reflects concern about rising rates of gambling addiction, threats to players, and corruption risks.

Questions are also being raised about the 2026 World Cup sponsorship by the little-known platform ADI Predictstreet, licensed in Gibraltar and linked to Abu Dhabi’s royal family. Previous allegations involving the company’s leadership only fuel regulators’ interest.

FanDuel temporarily waived its 50-cent per-bet fee in Illinois for the period of the NBA Finals. The move is widely seen as part of a lobbying push to repeal a state per-wager tax of 25–50 cents, which has already changed player behavior: fewer bets, but larger stakes.

Eight large language models (LLMs) from General Reasoning placed bets on the 2023/24 English Premier League season. All ended up in the red, six lost their entire bankroll, clearly demonstrating LLMs’ inability to sustain a long-term strategy.

In New Jersey, the U.S. Court of Appeals for the Third Circuit upheld a preliminary injunction preventing the state from issuing cease-and-desist orders against Kalshi. The conflict between states and prediction markets continues and could ultimately reach the U.S. Supreme Court.

  • Alabama Senator Tommy Tuberville is facing criticism for accepting donations from VGW Luckyland Inc., the parent company of sweepstakes casino sites, as the state moves to restrict such sites.
  • NBA guard Terry Rozier has reportedly been sidelined by the Miami Heat amid a federal investigation into possible stat manipulation related to bets on the under.

The next fork in the road for the two states

In Wisconsin, attention will focus on the progress of negotiations with the tribes and federal approval of the compacts. In Ohio, the decisive factor will be the initiative’s progress on restricting online betting and the governor’s response. Both processes are unfolding against the backdrop of increasing scrutiny of gambling and prediction markets both at the level of individual states and at the federal level.

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Vishakha Srivastava

Vishakha Srivastava

Seasoned Digital Marketing Professional | Manage Business Development Operations at TFI Media

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