Oklahoma sports betting legislation sparks debate over tribal gambling exclusivity

A move to legalize sports betting in Oklahoma has been set in motion by State Senator Casey Murdock, who recently filed Senate Bill 1434. The proposed legislation aligns closely with Governor Kevin Stitt's vision for expanding gaming throughout the state. However, the bill has already encountered resistance from a lawmaker who advocates for tribal exclusivity in sports betting operations.

Under Murdock's proposal, individuals with the financial means to cover upfront and annual fees would be permitted to launch online sportsbook operations. The Oklahoma Lottery Commission would be responsible for issuing licenses to both in-person and online sportsbook establishments.

For in-person gaming operations, 15% of gross revenue would be remitted back to the state. Mobile sports betting operations, on the other hand, would require applicants to pay a $500,000 start-up fee along with annual fees of $100,000, in addition to remitting 20% of gross revenue.

This proposal follows Governor Stitt's surprising announcement last month, presenting a plan to legalize sports betting that was followed by debate among tribes. Criticism ensued from tribal leaders and officials who contested the proposal's lack of protection for tribal exclusive gaming rights.

Murdoch's legislation introduces a significant point of contention by not granting Oklahoma's tribes the exclusive right to offer sports betting. According to the senator, the intention is not to exclude tribes but to provide equal opportunities for all interested parties.

Under the plan, tribes would have to negotiate sports betting compacts with the governor and get approval from the Oklahoma Legislature’s Joint Committee on State-Tribal Relations before they could get a license.

"I’m most definitely not saying the tribes can’t do it. I’m just saying anybody can do it,” Murdock stated. “If Joe Blow wants to start a business and wants to start a sportsbook, I want him to be able to. I didn’t want to put any exclusiveness in this.”

While acknowledging that the bill is a work in progress, Murdock emphasized collaboration with the Governor's Office in its development. Unsurprisingly, the legislative move seems in line with Governor Stitt's last month's proposal to legalize sports betting, which drew criticism for not preserving the tribes' exclusive gaming rights.

Rep. Ken Luttrell, a vocal supporter of tribal exclusivity in gaming, raised concerns that both Governor Stitt's proposal and Murdock's bill could violate the state's gaming compacts with the tribes. Luttrell, co-chair of the Legislature's Native American caucus, introduced in collaboration with Sen. Bill Coleman legislation last year for tribal in-person and mobile sports betting, though it stalled in the Senate. Expressing skepticism about Murdock's bill advancing, Luttrell stated: “I’ll be surprised if it even gets a committee hearing.”

Murdock, however, said he remains optimistic and expressed a willingness to collaborate with colleagues like Sen. Bill Coleman to find a comprehensive solution. "I think we need to work together on this for the entire state of Oklahoma," Murdock asserted. "I'm happy to work with the tribes on this, but I just want opportunities for everyone in Oklahoma."