Key Points
- Governor Kevin Stitt rejected Senate Bill 1589, blocking a proposed prohibition on internet-based sweepstakes casinos across Oklahoma
- Legislators overwhelmingly supported the measure, with Senate approval at 48-0 and House passage at 65-21, before the May 7 veto
- The proposed legislation aimed to regulate dual-currency sweepstakes models and would have imposed liability on location verification services, marketing partners, and affiliated businesses
- State legislators retain authority to overturn the governor’s decision through May 29, otherwise sweepstakes platforms continue operating without state restrictions
- Meanwhile, separate legislation authorizing sports wagering collapsed in the Senate during April, stalling both gaming reform efforts
Governor Kevin Stitt of Oklahoma has blocked legislation that sought to prohibit sweepstakes-style casinos throughout the state. Senate Bill 1589 received the governor’s veto on May 7, alongside numerous other legislative proposals.
The proposed law had garnered substantial legislative endorsement during its journey through both chambers. In March, senators unanimously supported the measure with a perfect 48-0 tally.
House members followed suit in early May, approving the bill by a margin of 65-21. Even with such overwhelming bipartisan momentum, the governor ultimately decided to reject the legislation.
Stitt has remained silent regarding his rationale for blocking the measure. This lack of explanation has sparked speculation among state lawmakers and gambling industry observers about his motivations.
Senate Bill 1589 sought to incorporate internet sweepstakes casino operations into Oklahoma’s current framework governing gambling activities. The legislation particularly focused on the two-currency system these websites employ.
Provisions of the Proposed Legislation
This operational framework involves one form of digital currency for gameplay participation, while a separate currency can be exchanged for actual monetary rewards. Proponents argued the bill would eliminate what they viewed as a regulatory loophole.
The legislation’s scope extended well beyond the casino platforms alone. Location verification companies, technology providers, marketing entities, and partner websites would all have faced potential legal consequences for involvement with sweepstakes ventures.
Simultaneously, the proposal contained exemptions for Native American gaming activities governed by the Indian Gaming Regulatory Act. Charitable gaming events already authorized under existing state statutes would have also remained permissible.
Following the veto, the legislation now sits in limbo. State lawmakers possess until May 29 to assemble sufficient votes for overriding the governor’s rejection.
Should legislators fail to take action before that cutoff date, Oklahoma will stay absent from the expanding roster of states implementing bans on sweepstakes casino operations. These platforms would maintain their current unregulated status under state law.
Sports Wagering Legislation Also Defeated
The sweepstakes casino veto wasn’t Oklahoma’s only gambling-related disappointment during the current legislative session. Companion legislation seeking to authorize sports wagering through tribal partnerships also encountered defeat.
House Bill 1047 received sponsorship from Sen. Bill Coleman and Rep. Ken Luttrell, who represents Ponca City. The proposal gained backing from both the Oklahoma City Thunder franchise and the Oklahoma Indian Gaming Association.
Under the bill’s framework, tribal nations would have secured exclusive authority over physical sportsbook locations and mobile betting platforms. Oklahoma’s treasury would have received 8% of all wagering revenues.
Proceeds specifically from NBA and WNBA betting activities were designated for the Strong Readers Act Fund. Advocates emphasized that regulation would provide a legal framework for gambling already occurring through unauthorized platforms.
Despite these justifications, senators voted down the proposal on April 22 with a 21-27 margin. Critics expressed alarm about potential increases in problem gambling behavior.
Governor Stitt’s administration had similarly opposed broadening the current tribal gaming agreements. This opposition created yet another hurdle for legislative supporters to overcome.
With both initiatives now defeated, Oklahoma lacks any immediate avenue for addressing sweepstakes oversight or sports wagering authorization this legislative year. Lawmakers confront a May 29 deadline should they choose to pursue a veto override on the sweepstakes legislation.
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