Oklahoma Governor Blocks Sweepstakes Casino Ban as Senate Votes Down Sports Betting Legislation

(AsiaGameHub) –   Gambling in Oklahoma is set to remain in a gray area for the foreseeable future, as Governor Kevin Stitt vetoed a ban on sweepstakes casinos. The move follows lawmakers’ rejection of legislation to legalize sports betting in the state.

Both the House and Senate passed the bill explicitly banning sweepstakes casinos. The Senate approved SB1589 in a 48-0 vote at the start of March, while the House voted 65-21 in favor of the bill last week.

Gov. Stitt, however, went against the consensus and vetoed the new law on Monday. The governor did not issue an official statement explaining why he shot down the legislation. He posted on X that he weighed “each bill with care and intention, thinking of the families, communities, and future generations who will be impacted.”

Having been elected in 2018, Gov. Stitt’s term in office will come to an end in January next year. He has strongly opposed expanding gambling in the state through tribal compacts, stating that he would veto any bills that grant a monopoly to tribes.

The veto on the sweepstakes ban may be a fear that it would similarly strengthen the tribes’ exclusive rights to offer gambling in Oklahoma.

Bill Would Have Prohibited Dual-Currency Gambling

The legislation would have explicitly prohibited platforms from offering online casino games through dual currencies. However, it carved out an exception “as provided in the Oklahoma Charity Games Act or as
otherwise authorized to be conducted on Indian lands in compliance with the Indian Gaming Regulatory Act.”

This part of the legislation is perhaps what made Gov. Stitt refuse to sign the ban into law. In theory, it could have allowed tribes to launch online casino games using dual currencies.

Non-tribal groups that ran sweepstakes casinos would have faced a Class C2 felony, with fines of $500 to $2,000 and potential imprisonment.

Tribal Push For Sports Betting Also Rejected

Gov. Stitt has also been vocal about vetoing any legislation that would grant tribes the right to offer sports betting.

I will absolutely veto any bill that creates a monopoly or protects one at the expense of a fair, open market,” Stitt said. “We need a plan that works for all four million Oklahomans, not just a few special interests.”

Lawmakers came closer than ever to legalizing sports betting in Oklahoma, which remains one of the few states without any legal retail or online sports wagering.

However, the legislation did not reach Gov. Stitt’s desk. The House approved HB1047 in a 62-31 vote at the end of March, but the Senate voted it down in a 27-21 vote last month.

The bill proposed allowing tribes to offer both in-person and online sports betting through commercial partners such as DraftKings and FanDuel. Tribes would have kept the majority of the revenue but would have given 8% of earnings back to the state.

New Governor Could See Change in Laws

As Gov. Stitt’s term in office comes to an end, a new Governor could see the state finally legalize sports betting. Kalshi currently gives the Republican Party a 92.7% chance of winning the gubernatorial race.

Candidates include Attorney General Gentner Drummond, who has opposed sports prediction markets.

This is unequivocally gambling, which means it belongs under State authority,” Drummond said. “States have long had the right and responsibility to protect their own citizens from the dangers of gambling, and that should continue to hold true whether bets take place on a prediction market or inside a traditional casino.”

This stance suggests he may favor legalizing sports betting with state authority, whether that is through the tribes remains to be seen. A survey last year showed he is the leading candidate with 35% of voter support, just ahead of Charles McCall at 33%.

McCall has historically supported a Tribal-centric model. He believes the path to legal sports betting must go through the existing tribal gaming compacts, as the tribes are the state’s long-term partners.

Either way, Oklahomans can continue using unregulated sweepstakes casinos and prediction markets, but are forbidden from accessing legal sportsbooks for the foreseeable future.

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