Oklahoma sports betting legalization stymied by disputes between government, tribes

Efforts to legalize sports betting in Oklahoma have stalled once again amid ongoing disagreements between Governor Kevin Stitt and the state’s tribes, according to a top gaming official.

Matthew Morgan, chairman of the Oklahoma Indian Gaming Association, noted that despite Gov. Stitt's public advocacy for sports betting during the last legislative session, there was a noticeable lack of enthusiasm for the initiative.

"Any discussion of sports betting never left the ground because there was just too much posturing and disagreement on how the industry worked," Morgan said, as reported by the Oklahoma Voice. He noted the association, representing 25 tribes, hasn't seen any "real outreach" from state leadership.

Morgan also emphasized that sports betting is a low-profit margin business. For that reason, tribal leaders might be open to discussing a deal within the framework of their existing compacts, but they are not interested in signing new agreements or taking on unnecessary economic risks.

Republican lawmakers have tried for years to legalize sports betting following the 2018 U.S. Supreme Court decision striking down the Professional and Amateur Sports Protection Act. In November, Gov. Stitt surprised tribes and lawmakers with his own plan to legalize it, which faced immediate pushback due to a lack of consultation with tribal leaders.

Stitt’s proposal, which included provisions for both in-person and mobile betting, was criticized for allowing any vendor to operate mobile gaming with a $500,000 license, which opponents said would undermine the tribes' exclusive rights under existing compacts.

Sen. Casey Murdock, R-Felt, who proposed SB 1434 during the 2024 legislative session, expressed confusion over the bill's failure to progress. Murdock’s legislation, which aligned closely with Stitt’s vision by allowing anyone to offer mobile sports betting, did not make it past the appropriations committee. 

"I think when we made the compacts on gambling, we never even looked at sports betting, and especially mobile betting on your mobile phones," Murdock said. "This is totally new, and I think we should start over and make it fair for every Oklahoman."

Jay Finks, Oklahoma Lottery Commission executive director, highlighted the risks and low-profit margins of sports betting, suggesting that a "hard-core" competitive market between companies like DraftKings or FanDuel is unlikely due to tribal dominance in the gaming industry.

The most promising attempt to legalize sports betting came during the 2023 legislative session with HB 1027, which passed in the House but did not advance further. The bill would have allowed tribes to offer sports betting through a compact supplement.

Sen. Bill Coleman, R-Ponca City, noted that constituents frequently advocate for sports betting, pointing out that neighboring Kansas, where sports betting is legal, is drawing revenue away from Oklahoma. Coleman remains optimistic, suggesting that sports betting legislation could pass within a year, and plans to reintroduce the bill in a future session, as reported by Oklahoma Voice.

Thirty-eight states and the District of Columbia currently allow some form of sports betting.