Wisconsin Online Sports Betting Law Challenged for Racial Discrimination

• A group of taxpayers has filed a lawsuit against Wisconsin Governor Tony Evers over the state's new law allowing online sports betting.
• The plaintiffs claim that the law discriminates based on race and is unconstitutional, citing a 1993 amendment to the state constitution.
• The court's decision could have significant implications for businesses operating in Wisconsin, potentially affecting the legality of online sports betting.

According to the complaint, the new law allows tribal nations to negotiate with each other, the state, and betting platforms to create a plan that benefits all 11 federally recognized tribes equally.

A group of taxpayers has filed a lawsuit against Wisconsin Governor Tony Evers and several state officials over the state's new law allowing online sports betting. The plaintiffs, represented by the Brown County Taxpayers Association and Citizens Defending Liberty, claim that the law discriminates based on race and is unconstitutional. They argue that the Legislature and Evers never had the authority to authorize gambling in Wisconsin, which has been barred since a 1993 amendment to the state constitution. According to the complaint, the new law allows tribal nations to negotiate with each other, the state, and betting platforms to create a plan that benefits all 11 federally recognized tribes equally. However, the plaintiffs say that this provision discriminates against non-tribal entities and individuals who do not have access to these negotiations.

Wisconsin has a complex history when it comes to gambling laws. In 1993, the state constitution was amended to bar the Legislature from authorizing gambling. However, despite this amendment, the new law allowing online sports betting appears to carve out an exception for tribal nations. This has raised questions about the authority of the Governor and the Legislature to negotiate compact amendments that allow statewide sports betting. The plaintiffs argue that any attempts by Evers to negotiate these amendments would be ultra vires, or beyond his authority. Additionally, the Commodity Futures Trading Commission has sued Wisconsin over the state's regulation of prediction markets, including Kalshi and Robinhood.

The court's decision in this case could have significant implications for businesses operating in Wisconsin. If the law is struck down as unconstitutional, it could affect the legality of online sports betting in the state and potentially set a precedent for other states. Compliance officers and lawyers should be aware of these developments and consider how they may impact their clients' businesses. The case also highlights the complex relationships between tribal nations, the state, and private companies operating in the gambling industry.

A lawyer or compliance officer should watch for the potential impact on their clients' businesses, as the court's decision could affect the legality of online sports betting in Wisconsin and potentially set a precedent for other states.

Source: Original reporting via Courthouse News