In Oklahoma, the journey toward legalized sports betting is met with significant opposition from federally recognized tribes, challenging Gov. Kevin Stitt’s proposed framework for implementing regulated wagering within the state. The crux of the contention lies in the tribes’ belief that Stitt’s proposal infringes upon their gaming compacts and their exclusive rights to conduct wagering activities.
Gov. Stitt’s initiative, which was unveiled last year, aims to introduce retail sports betting at tribal casinos and other gaming venues across Oklahoma, with the addition of online betting facilitated through the Oklahoma Lottery Commission (OLC). This plan outlines a taxation rate of 15% for bets placed at physical sportsbooks and a higher rate of 20% for online betting operations. To participate, operators would need to secure a license with an annual fee of $100,000. However, the state’s tribes are firmly against this scheme, particularly because it excludes college prop betting and places them in direct competition with commercial sportsbooks.
This strips them of their exclusive rights to offer regulated betting—a right reaffirmed in 2020 when gaming compacts were automatically renewed for another 15 years following a legal battle and a ruling by the United States District Court for the Western District of Oklahoma. The dispute initially arose when Stitt claimed these compacts had expired, leading to a lawsuit from the tribes. The discord between Oklahoma’s tribes and Governor Stitt has been exacerbated by the lack of consultation in developing the sports betting plan. The Oklahoma Indian Gaming Association (OIGA), a non-profit organization representing the interests of the tribes, expressed disappointment over the absence of a collaborative approach from Stitt’s administration. Despite the tribes’ readiness to negotiate sports betting arrangements, they still point out the governor’s failure to engage in respectful, government-to-government discussions.
Legislative efforts are currently underway to find an alternative path to legalize sports betting in Oklahoma. Sen. Casey Murdock introduced Senate Bill 1434 earlier this month, aiming to enable tribes to offer sports betting under contracts with the state lottery. This bill proposes a different regulatory framework, allowing online wagering for licensed retailers, with a steep initial licensing fee of $500,000 and an annual renewal fee of $100,000. Having passed its second reading on February 6, SB 1434 has been forwarded to the Appropriations Committee for further consideration.
This ongoing debate over sports betting legislation in Oklahoma underscores the complex relationship between state governance, tribal sovereignty, and the booming sports betting market. As the state seeks to navigate these waters, the tribes’ opposition to Gov. Stitt’s plan highlights the importance of respecting tribal compacts and ensuring any sports betting legislation is crafted in consultation with, and with the consent of, the tribal nations that have long been integral to Oklahoma’s gaming industry.
