Combine panko (or gluten-free bread crumbs) and milk in a large bowl and let sit until softened, about 5 minutes.
Add egg, garlic, parsley, onion powder, parmesan cheese, bison meat, 3/4 teaspoon salt, and 1/4 teaspoon pepper. Use hands to mix thoroughly and form into 16 1-1/2-inch meatballs. Place the meatballs on a parchment lined baking sheet.
Reduce heat to medium. Add remaining 1 tablespoon oil to the reserved skillet along with the tomatoes, Italian seasoning, garlic powder, ½ teaspoon salt, and 1/4 teaspoon pepper. Use a large spoon to stir and combine while scraping up the bottom of the pan. Bring to a simmer and add the meatballs.
Kid friendly. Gluten-free, if made with gluten-free breadcrumbs.