Sports Betting Legalization Hits Roadblock in Oklahoma

The push to legalize sports betting in Oklahoma has once again stalled, primarily due to ongoing tensions between Governor Kevin Stitt and the state's tribal nations. This impasse highlights the complex relationship between state government and tribal sovereignty in the Sooner State.

Sports Betting Legalization Hits Roadblock in Oklahoma

Matthew Morgan, chairman of the Oklahoma Indian Gaming Association, revealed that discussions about sports betting have not progressed. “Any discussion of sports betting really never left the ground because there was just too much posturing, too much disagreement on how the industry worked,” Morgan stated. He also noted a lack of “real outreach” from state leadership to tribes on the subject.

The current stalemate follows Governor Stitt’s surprise proposal in November, which faced immediate backlash. While the plan offered tribes exclusive rights to in-person betting, it allowed any vendor willing to pay a $500,000 license fee to operate mobile gaming. Critics pointed out that online bets typically comprise 95% of revenue in this sector.

The debate over sports betting has also reignited discussions about online casinos in Oklahoma. Currently, the state does not allow legal online casino gambling, with all casino operations limited to tribal lands. Some proponents argue that legalizing online casinos alongside sports betting could provide a significant boost to state revenues.

However, this idea faces similar challenges in terms of tribal agreements and regulatory frameworks, further complicating the already contentious gambling expansion talks.

Republican lawmakers have been attempting to legalize sports betting since 2018, when the U.S. Supreme Court struck down federal prohibitions.

However, these efforts have consistently fallen short. Senator Casey Murdock’s recent bill, SB 1434, which aligned closely with Stitt’s vision, failed to advance past the appropriations committee.

The most promising attempt came during the 2023 legislative session with HB 1027, which passed in the House but stalled thereafter. This bill would have provided tribes with a compact supplement, potentially allowing them to offer sports betting.

Despite the setbacks, some lawmakers remain optimistic. Senator Bill Coleman, a co-author of HB 1027, believes sports betting legislation could pass within a year.

You’ve got the governor, you’ve got the tribes, you’ve got the Legislature, you’ve got plenty of people that are giving input, and it just takes time to get everybody to get on the same page,

Senator Bill Coleman

The situation in Oklahoma stands in stark contrast to the national trend. Currently, 38 states and Washington D.C. allow some form of sports betting, leaving Oklahoma as one of the holdouts in this rapidly expanding market.

As the debate continues, Oklahoma faces the challenge of balancing state interests, tribal rights, and the economic potential of sports betting.

The outcome of this ongoing discussion could have significant implications for the state’s gaming industry and its relationship with tribal nations.