Gov. Kevin Stitt unveiled on Thursday his plan to introduce Oklahoma sports betting in the state. However, it remains to be seen whether the proposal will be welcomed by either lawmakers or tribal gaming leaders. Stitt wants both brick-and-mortar sportsbooks at tribal casinos and online sports betting apps that would be licensed by the state. Online licenses would cost $500,000 and could be renewed annually for $100,000. Tribal sports betting rights would be included in gaming compacts.
Revenue from in-person sportsbooks would be taxed at 15%, and online apps would be taxed at 20%.
“I promised Oklahomans if we pursued sports betting, we would do it right — and this plan does just that,” said Governor Stitt. “Thirty-five states have already legalized sports betting, and it’ll be a great revenue stream for the state. Tribes will be able to add it onto their existing infrastructure, and Oklahomans can access it right from their phone.”
The governor also wants a ban on prop bets involving collegiate student-athlete performance and is willing to take guidance from the NCAA and collegiate conferences regarding other restrictions regarding betting on college sports.
Plan Not Shared With Legislators
House Bill 1027, a measure to legalize Oklahoma sports betting, passed the state House of Representatives by a 66-26 vote in March. While the Senate did not act on it before the legislative session ended in May, Sen. Bill Coleman, R-Ponca City, said he intends to bring it back for its consideration in February.
In a statement released after Stitt’s announcement, House Speaker Charles McCall, R-Atoka, said sports betting was “a very complicated issue” in this year’s session.
“The Governor didn’t discuss his plan with me before his announcement, and the House will need time to review and discuss his proposal with all interested parties,” he said. “That being said, the House is always open to good ideas, and I look forward to reviewing his proposal in greater detail.”
Stitt has not had the best relationships with either Oklahoma lawmakers or the state’s tribes. In late July, the governor sued McCall and Senate President Pro Tempore Greg Treat, R-Oklahoma City, after legislators overrode his vetoes on tribal compacts regarding vehicle licensing and tobacco sales.
Coleman said that the “lack of coordination” between Stitt’s office and tribal nations was the primary reason HB 1027 stalled in the Senate this year. He also expressed frustration the governor did not reach out to him before unveiling his proposal.
“The governor’s plan needs some work but that’s what the legislative process is about — coordination, collaboration, and consensus — and I’m looking forward to it.”
How Big Is Tribal Gaming In Oklahoma?
Like the lawmakers, the Oklahoma Indian Gaming Association Chairman Matthew Morgan said his group was not consulted by the governor.
“The members of the OIGA have been preparing to receive an offer from the State on sports betting for the past couple of 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 discussion with tribes,” Morgan said.
The chairman said Stitt would “invite failure” if he did not engage with lawmakers and tribes to develop supplements to gaming compacts that protect their gaming exclusivity in the state.
Tribal gaming is a major economic engine for Oklahoma, which has the nation’s second-largest Native American population. According to the American Gaming Association, there are more than 140 casinos in the state that employ more than 75,000 workers and generate an economic impact of almost $10 billion.
As financial reports from numerous states show, online betting is far more lucrative than in-person sportsbooks. Depending on the state, apps from the likes of DraftKings, FanDuel, BetMGM and Caesars can control more than 90% of the betting handle and a similar amount of the revenue generated.
Should the likes of BetMGM Oklahoma become a reality next year, bookmark BetOklahoma.com.
