Oklahoma Senate Blocks Online Sports Betting Bill

(AsiaGameHub) –   Oklahoma legislators halted another effort to legalize sports betting on Wednesday. A vote in the Senate defeated a proposal to authorize online sports wagering and physical sportsbooks, leaving minimal opportunity for revival before the legislative term concludes in late May.

Good to Know

• The Oklahoma Senate turned down the bill in a 21 to 27 vote.
• The legislation would have granted gaming tribes sole authority over mobile sportsbooks and the ability to offer retail betting.
• Governor Kevin Stitt continued his opposition, maintaining a veto threat.

Senate Vote Deals Another Blow to Oklahoma Sports Betting

A renewed attempt to establish sports betting in Oklahoma failed as the Senate rejected a bill that had previously passed the House in a more limited version last year. The proposal had been dormant for over a year before being modified earlier this month and advanced to a Senate vote.

The vote revealed the persistent division that has stalled legalization for years. Certain senators argued that legalized betting would exacerbate gambling addiction. Others opposed the exclusive model for tribes and sought inclusion for the state lottery, horse racing tracks, and businesses outside the gaming industry.

Had it passed, the plan would have given Oklahoma’s gaming tribes exclusive control over an unlimited number of mobile sportsbook platforms. Close to 100 tribal gaming venues could have also launched retail sportsbooks. The bill’s author, Bill Coleman, stated his intention to pursue another vote, although no timeline is fixed.

If enacted, the law was scheduled to begin on Nov. 1, permitting online and retail sports betting to launch immediately. Cooperating tribes would have collaborated and shared revenue, differing from models in states like Michigan, Arizona, and Connecticut, which typically feature a single tribe partnering with one commercial operator.

FanDuel supported the bill, projecting it could generate $75 million to $100 million in state revenue over five years. In a statement to iGaming.org, a spokesperson commented: “Oklahomans are already placing sports bets on unregulated offshore sites – legalization would move this activity into a secure, regulated environment,” the spokesperson stated. “FanDuel looks forward to potentially collaborating with tribal nations to create a responsible system and urges lawmakers to advance this initiative.”

Any eligible external operator could have pursued entry into the market via a partnership with a tribe. This was expected to attract major players like FanDuel, DraftKings, BetMGM, Caesars, bet365, Fanatics, and Hard Rock. FanDuel and DraftKings alone represent approximately 75% of the legal sports betting handle in the U.S., with under a dozen operators dominating over 99% of the market.

The proposal also featured an uncommon financial structure. Tribes would have paid the state a portion of the total betting handle instead of a tax on gross gaming revenue. After allowable deductions, estimates suggested the effective rate would be close to or lower than the median rate of about 10% applied to gaming revenue in many other regions.

Additionally, up to $7 million annually was earmarked for marketing initiatives linked to the NBA’s Oklahoma City Thunder. A prior version of the bill had contained provisions for the team to operate a sportsbook, but this was omitted from the final draft.

Oklahoma continues to be among the 11 states that have not legalized retail or mobile sportsbooks. Despite this, the state leads in the number of physical casinos per capita and generates over $6 billion in yearly gaming revenue, accounting for roughly 5% of Oklahoma’s annual GDP.