- An Oklahoma Senator pre-filed a bill to allow state tribes to amend compacts and allow sports betting
- Both retail and online sports betting would be available
- The federal government would have to approve the tribal gaming compact amendments
Oklahoma’s legislative session does not start for another month, but one senator is already eyeing legalized online and retail sports betting for state tribes.
Sen. Dave Rader (R-39) has pre-filed SB 125, a bill to allow Oklahoma Tribes to amend their gaming compacts to offer retail and online sports betting in the state. The state’s legislative session will officially begin on Monday, Feb. 3, 2025.
This will be the third year in a row Oklahoma lawmakers may consider a sports betting bill.
Tribal Control of Sports Betting
Rader’s bill will allow each of the 38 federally recognized Oklahoma Tribes the ability to amend their gaming compacts to offer both retail and online sports betting. The amended gaming compacts would have to be officially approved by the U.S. Department of the Interior prior to the tribes offering the new form of gaming.
His bill preserves sports betting exclusivity for Oklahoma Tribes, a sticking point over the last few legislative sessions.
The legislation requires each tribe participating in sports betting to pay a fee to the state. The fee depends on the amount of adjusted gross sports betting revenues brought in by tribes during a calendar year.
The fees are as such:
- 5% of the first $5 million of monthly net win in a calendar year
- 6% of the next $5 million of adjusted gross revenues in a calendar year
- 7% of all subsequent adjusted gross revenues received in a calendar year
The legislation gives complete control over sports betting to the Oklahoma tribes, which differs from 2024 legislation from Oklahoma Gov. Kenny Stitt (R) that allowed outside sports betting operators to come into the state.
Gov. Stitt Fan of Sports Betting, But at Odds With Tribes
Gov. Stitt has long been a proponent of Oklahoma sports betting, but has found himself at odds with tribes on just how to bring the new form of gaming into the state.
Stitt proposed a plan in 2023, and again in 2024, to legalize both retail and online sports betting in the state, but not give Oklahoma Tribes exclusive control over both. His plan gave tribes exclusive control over retail sports betting, which would have been taxed at a 15% rate, but allowed outside sports betting operators to control Oklahoma online sports betting. Operators would have paid an initial licensing fee of $500,000 and an annual licensing fee of $100,000 to offer sports betting in the state.
Online sports betting would have been taxed at a rate of 20%.
State tribes did not support Stitt’s legislation. A 2020 gaming compact renewal provided Oklahoma Tribes with exclusive sports betting rights, and the tribes believed Stitt’s plan put them in direct competition with outside sports betting companies.
In a recent development, Oklahoma Senator John Doe has expressed interest in exploring the possibility of legalizing tribal sports betting in the state by 2025. This move comes in response to the growing popularity of sports betting across the country and the potential economic benefits it could bring to Oklahoma.
Tribal sports betting refers to the practice of allowing Native American tribes to operate sports betting facilities on their reservations. This would not only provide a new source of revenue for the tribes but also create jobs and stimulate economic growth in the surrounding communities.
Senator Doe believes that legalizing tribal sports betting could help boost Oklahoma’s economy and generate much-needed revenue for the state. With neighboring states like Arkansas and Texas already moving forward with sports betting legislation, Oklahoma risks falling behind if it does not act soon.
However, there are still many factors to consider before tribal sports betting can become a reality in Oklahoma. The state would need to negotiate agreements with the tribes, establish regulations for sports betting operations, and address concerns about potential gambling addiction and other social issues.
Despite these challenges, Senator Doe is optimistic about the potential benefits of legalizing tribal sports betting in Oklahoma. He believes that it could help create a more competitive gaming market in the state and attract more visitors to tribal casinos.
As discussions continue, it will be interesting to see how the debate over tribal sports betting unfolds in Oklahoma. With the potential for significant economic impact, this issue is sure to remain at the forefront of the state’s legislative agenda in the coming years.
