Efforts in Oklahoma to impose regulations on online sweepstakes casinos have hit a roadblock following Governor Kevin Stitt's veto of Senate Bill 1589. This decision leaves unregulated online casino platforms and applications available to residents of the state.
The veto was officially recorded on May 7 on the Oklahoma State Legislature's website, after SB 1589 had gained significant support, passing through both legislative chambers. The Senate unanimously approved the bill with a 48-0 vote in March, while the House followed suit in early May.
Sponsored by Republican lawmakers from Tulsa, Senator Todd Gollihare and House Speaker Pro Tempore Kyle Hilbert, the proposed legislation aimed to criminalize online social casino games that utilized dual-currency systems. These systems are often employed by sweepstakes casinos, involving one type of coin for gameplay and another for redeeming prizes or cash withdrawals.
The bill defined online casino games broadly as “any gambling game” that includes a “representative of value,” which encompasses “any and all currency used as part of a dual-currency payment system that allows individuals to exchange such currency for prizes, cash, or equivalents.”
If enacted, SB 1589 would have classified the promotion or operation of unregulated gaming, including online sweepstakes casinos, as a Class C2 felony, potentially resulting in fines ranging from $500 to $2,000 and jail sentences of up to 30 days. The bill also held geolocation providers, gaming suppliers, platform providers, promoters, and affiliates liable.
The legislation included exemptions for activities conducted on Indian lands in accordance with the Indian Gaming Regulatory Act and preserved gaming activities under the Oklahoma Charity Games Act.
Governor Stitt expressed concerns that the bill was overly punitive, suggesting it could impose felony charges on online gaming operations and app developers. He maintained that Oklahoma could safeguard consumers from illegal gambling without jeopardizing social gaming or marketing strategies.
Moreover, the governor raised doubts about the broad definition of “representative of value,” which he feared could inadvertently impact online retail promotions, such as discount codes offered through promotional games. He concluded that the legislation would create unnecessary uncertainty.
Lawmakers now have until May 29 to consider a veto override, requiring a two-thirds majority in both chambers, which translates to 32 votes in the Senate and 67 in the House, assuming full participation from all 101 House members.
This veto follows the failure of House Bill 1047, another proposal aimed at legalizing sports betting through tribal operators. That bill was rejected in the Senate on April 22, with a vote tally of 21-27.
Supported by the Oklahoma City Thunder and the Oklahoma Indian Gaming Association, HB 1047 would have permitted tribal nations to conduct both retail and mobile sports betting, granting tribes exclusive rights while the state would receive 8% of the betting revenues. Funds from NBA and WNBA betting would have been allocated to the Strong Readers Act Fund.
Proponents viewed it as a regulated alternative to existing betting options, while opponents raised concerns about gambling addiction. Stitt's office also opposed the expansion of the tribal gaming compact, citing issues related to transparency and market-rate practices.