Major Resistance for Gov. Stitt's Sports Betting Bill

Oklahoma is in the red zone, though they are struggling to push the ball across the goal line in their attempt to legalize sports betting. As Gov. Kevin Stitt strives to finalize an Oklahoma sports betting bill, there has been strong resistance recently from the tribes and the Oklahoma Legislature under his latest proposal.

In June, we reported that the Oklahoma sports betting bill had taken a big step forward. There was significant momentum in the state for the legalization of sports betting. On March 21, 2023, sports betting House Bill 1027 passed in the House.

At the time, legal Oklahoma sports betting online was supposed to be up and running by the end of the year. As we approach the end of 2023, Oklahoma sports bettors are still left wondering when they will be able to bet with a regulated operator in the state.

Oklahoma Sports Betting Bill Held Up By Dispute

There has been a recurring dispute between Oklahoma tribal members, who are significant stakeholders in casinos in the state and have been at odds with Gov. Stitt. Also, lawmakers in the Oklahoma Legislature haven’t been too fond of how Stitt has handled the Oklahoma sports betting bill recently.

Despite House Bill 1027 passing a third reading in the House earlier this year, it was unable to proceed through the Senate in April¹. Currently, the tribes are not content with a proposal by Stitt that came to their attention in November.

Tribes Want Private Operators Blocked From Obtaining Gaming Licenses

Already a contentious relationship, the most recent move by Stitt soured it even deeper. While Stitt’s Oklahoma sports betting proposal offers tribes the ability to offer sports betting at their land-based casinos, he wants private operators to enter the mobile sports betting industry in Oklahoma.

Private online gambling operators, such as DraftKings and FanDuel, will be able to pay $500,000 for an online Oklahoma sports betting license. Additionally, under Stitt’s proposal, private operators would have to pay $100,000 in annual fees². Ultimately, this would result in more money for the state than without it implemented.

Gaming pacts between the tribes and Oklahoma enable tribes to operate casinos exclusively in the state. However, according to Stitt’s plan for legalized sports betting, that would change with mobile sports betting. Mobile sports betting accounts for roughly 95 percent of revenue in other states with legalized online gaming.

According to the Chairman of the Oklahoma Indian Gaming Association, Matthew Morgan, Stitt did not inform him of the move to allow private online operators to offer their services.

“The members of the OIGA have been preparing to receive an offer from the state on sports betting for the past couple years, and while we appreciate Gov. Stitt finally joining the sports betting conversation, to date he has not engaged in meaningful and respectful government-to-government discussions with tribes,” Morgan said³.

The tribal casinos were not the only ones caught off guard by Stitt’s comments. Lawmakers in the Legislature were not briefed on Stitt’s Oklahoma sports betting bill proposal.

Lawmakers Blindsided By Stitt’s Sports Betting Plans For Oklahoma

The proposal by Stitt took everyone involved by surprise, including the co-author of HB 1027, Sen. Bill Coleman. Coleman stated that he was never contacted by Stitt or any other representatives about the plan to welcome outside operators.

In a statement, Coleman commented that he does not expect the tribes to be content with Stitt’s plan for Oklahoma online gambling. Coleman added that a lack of communication between the government and tribes is why HB 1027 fell in the Senate.

“A lack of coordination between the executive branch and tribal leadership was the main reason our bill stalled this session. When dealing with the tribes, compacting, and the many nuances with exclusivity and future gaming negotiations, it’s imperative that Gov. Stitt work in good faith with our tribal partners.”

Where Does Oklahoma Sports Betting Go From Here?

Oklahoma tribal leaders wield an incredible amount of power over gambling in the state. If they are not satisfied with the details of an Oklahoma sports betting bill, it is highly unlikely that progress will be made.

When tribal casinos are on board with Stitt and lawmakers, this is when there will be some traction toward finding a resolution. Otherwise, an Oklahoma sports betting bill will continue to stall out in the Senate.

The Senate will not approve a bill that doesn’t appease the tribes. So, if Stitt’s current proposal were to advance to the Legislature, do not bet on it coming close to passing. It would undoubtedly fall flat.

Therefore, there doesn’t appear to be a resolution in the near term for legal sports betting in Oklahoma. The bridge between the tribes and government officials must be closed before traction is gained toward legalization.

In summary, Oklahoma is in an uphill battle to have legalized sports betting in 2024. Oklahomans should hope for the best, but prepare for the worst. Fortunately, we have an alternative for sports bettors in Oklahoma.

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