Oklahoma wants legalized sports gambling so badly that they've tabled five different pieces of legislation to get it done. It's a messy tangled web of legislation that can send even the most experienced industry insider for a loop.
So, let's examine all five pieces of legislation to determine what they seek to do, where they are in the legislative process, and what hurdles they might face.
Untangling the Web Of Legislation
House Bill 1047
Sponsored by representatives Ken Luttrell and Bill Coleman, Bill 1047 passed a House subcommittee in a unanimous 5-0 vote and will now go to the Appropriations Committee for their consideration.
Bill 1047 would alter the state's current compact with the tribes to allow them to offer sports gambling at their casinos and through mobile apps on tribal lands. It would tax all sports gambling revenues at 10%.
As the bill passes to the Appropriations Committee, negotiations begin with the tribes. OIGA chairman Matthew Morgan said the tribes are "willing to sit down and talk about what's best for Oklahoma", keeping the door open to a compromise.
But if one can't be reached Luttrell has a fail-safe. Bill 1101.
House Bill 1101
Bill 1101 is a near-carbon copy of 1047, with one key change a referendum vote. If Bill 1047 can't be negotiated or agreed to, Bill 1101 would move the debate to the people.
Oklahomans would be asked to vote "Yes" or "No" on the following proposition:
"The measure authorizes the wagering on sports contests. The measure raises certain fee to be received by the state for the treatment of compulsive gambling disorder to Twenty-five Thousand Dollars ($25,000.00). The measure authorizes a tribe that has compacted with the state to accept the offer of the gaming compact supplement. The measure provides a form that the supplement shall be submitted on to the United States Department of the Interior. The measure directs that the tribe pay a fee to the state from certain revenues. The fee will be ten percent (10%) of monthly adjusted gross revenue from sports betting. The measure allows the tribe to keep an amount equal to state payments from the operation of sports betting."
I don't believe Luttrell wants to get to the point of a referendum; the last poll on sports gambling in Oklahoma (done in 2023) showed that only 44% of respondents approved of legalizing sports gambling.
Senate Bill 125
Introduced by Senator Dave Rader, the Bill passed the Senate's Appropriations Committee with a 9-2 vote. Bill 125 would allow all tribes that have already entered into a compact with the state to offer in-person and mobile sports betting.
It would also require tribes to pay up to a seven percent fee on sports gaming revenues.
The bill also requires the Department of the Interior to approve the amended compact. That would have previously been seen as a difficult hurdle but the DOI recently altered its regulations to make these approvals easier.
Senate Bill 585
Bill 585, introduced by Bill Coleman, is also known as the "Thunder Bill" for allowing the Oklahoma City Thunder to offer mobile bets on non-tribal land. Tribes would be allowed to take in-person and mobile bets on tribal land (which accounts for about 43% of Oklahoma).
The state would tax annual gross revenues at 10%.
To move forward both the tribes and the Thunder would need to agree on this bill. While this is a massive lifeline to the Thunder - who have the fifth-lowest revenues in the Association at $321 million - it's hard to see the tribes agreeing to this deal which could negatively impact their business.
Senate Bill 164
Put forward by Senator Casey Murdock, Bill 164 would give the Oklahoma Lottery Commission the responsibility to regulate sports gambling in the state. Tribal and non-tribal actors must apply for a sports gambling license carrying a one-time $500,000 fee and a $100,000 annual renewal fee.
Revenues would be taxed at 15%.
This bill has already seen significant pushback, barely passing the Senate Appropriations Committee by a 6-5 vote. There is a worry that Murdock's bill would violate the exclusivity provision in the state's compact with the tribes. In 2024, Oklahoma collected $210 million in gaming exclusivity fees; violating that provision could see the Sooner State lose out on that windfall.
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