Oklahoma moved closer to legalizing sports betting as the state Senate approved Senate Bill 585 on Tuesday. The proposed legislation, which allows retail and mobile sports betting to coexist, will now move to the House for further consideration. This bill marks the latest push to legalize sports wagering in the state, as any legislation must carefully navigate Oklahoma’s complex gambling environment.

Support for Sports Wagering Is Picking Up Momentum

Efforts to legalize Oklahoma sports betting began after the US Supreme Court overturned the federal ban on sports betting in 2018. However, the state has made limited progress due to disagreements between Gov. Kevin Stitt and the state’s gaming tribes over revenue-sharing agreements and exclusivity. Despite these disputes, most experts believe that legalized Oklahoma sports wagering is likely a matter of time.

SB 585 envisions a framework under which Oklahoma’s federally recognized gaming tribes may legally offer retail sports betting in their casino venues. Additionally, the state’s sole major professional sports team, the Oklahoma City Thunder, can partner with a third-party sportsbook operator to offer mobile sports betting outside tribal territories.

The proposed legislation seeks to achieve a compromise between tribal interests and state policymakers, settling a long-standing debate over the exclusivity of tribal gaming rights. SB 585 attempts to usher in a balanced sports wagering sector, providing the state with a valuable revenue stream while protecting tribal gaming operations.

Oklahoma Tribes are Warming up to the Idea

Under Oklahoma’s current tribal gaming compacts, only tribes can offer casino-style gambling. Earlier proposals to expand betting in the state faced significant pushback from the Oklahoma Indian Gaming Association (OIGA) and various tribal leaders who criticized these attempts as a violation of existing agreements and a threat to tribal sovereignty.

Despite previous criticisms, a recent statement from OIGA chair Matthew Morgan signaled a potential shift in the tribes’ stance. Ongoing shifts in the broader US gambling landscape could encourage the tribes to consider a sports betting framework that includes a role for non-tribal entities without compromising existing gaming compacts.

While we are not finished having our internal discussions around potential future forms of gaming, we think our proposed language is a great first step to bring legal sports betting to our gaming customers.
Matthew Morgan, OIGA chair

If SB 585 is enacted, Oklahoma will join over 35 states offering legalized sports wagering. Unlike other jurisdictions where tribal gaming is confined to smaller reservations, many of Oklahoma’s tribes have expansive territories, including urban centers. SB 585 would thus create a complex but potentially lucrative market where tribal and non-tribal operators coexist.