The Oklahoma Legislature has approved a significant bill aimed at banning online casino games, including those that utilize dual-currency systems often found in sweepstakes casinos. Senate Bill 1589 received a favorable vote of 65-21 in the House and was unanimously passed by the Senate earlier this month.
This legislation amends the existing gambling laws in Oklahoma to specifically include online casino-style games. It defines 'online casino games' as any form of internet gambling where players can wager something of value through computers, mobile devices, or tablets, encompassing slots, lottery-style games, and bingo.
Importantly, the bill clarifies the term 'representative of value' to cover any currency used in a dual-currency payment system, which allows individuals to exchange such currency for prizes, awards, or cash equivalents. This definition is particularly aimed at sweepstakes casinos that operate using dual-currency systems, where players typically buy one type of currency for entertainment and receive another as a gift that can be redeemed for prizes or cash.
Furthermore, SB 1589 extends liability to include not just operators but also any 'geolocation provider, gaming supplier, platform provider, promoter, or media affiliate' involved in supporting these activities. Violators could face a Class C2 felony charge, with penalties ranging from $500 to $2,000 and the possibility of imprisonment.
If signed into law, the bill is set to take effect on November 1, 2026, making Oklahoma the fourth state to legislate against sweepstakes casinos in that year. Indiana and Maine have already enacted similar bans, effective in July, while Tennessee is also in the process of passing related legislation.
In addition to these states, others like Louisiana and Minnesota are exploring similar measures. Louisiana's legislature has already passed a bill to include 'Gambling by electronic sweepstakes device' in its racketeering laws, while Minnesota's Senate recently approved a comparable measure.
As SB 1589 moves through the enrollment process, it will soon be presented to Governor Kevin Stitt, who will have five days to sign, veto, or take no action on the bill. If he chooses not to act, the legislation will automatically become law.