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Now would be the perfect time for Oklahoma sports betting to be a thing, eh? That’s because March Madness betting is literally everywhere — brackets, spreads, props, etc. The gambling appetite is infectious this time of year.
Plus, there are some local ties. The Oklahoma Sooners are dancing in the NCAA Tournament for the first time in four years — drawing a matchup against the two-time-defending champs in UConn. It’s a No. 8 vs. No. 9 matchup that could go either way.
Of course, locals won’t be able to bet on the matchup or any other in the tourney — not legally at least. Oklahoma is one of 11 states without a legal sports betting market. Shocking because of the state’s fledging casino marketplace, which is propped up by the Native American tribes. But there lies the problem.
The tribes have feuded with Oklahoma Governor Kevin Stitt over legal sports betting. It’s a feud with multiple wrinkles over the last four to five years. Welp, there’s a brand-new wrinkle. That’s because Stitt has once again brought up the need to legalize sports gambling — but without exclusive control for the tribes. Keep reading to get insight into the latest chapter in this testy rivalry.
“We Need More Of A Free Market”
The exact words out of Stitt’s mouth earlier this month go like this: “We need more of a free market accountable system. (The tribes are) big businesses. They can sign up, and they can do the exact same thing that the Thunder or somebody else can, but I don’t want to give a monopoly exclusively to the tribes that are a very reduced number.”
In case you’re not in the know: this exclusivity is at the core of this feud. Stitt, as the quote says, wants a wide-open market. That would include the tribes, but also mobile betting apps — BetMGM, DraftKings, and the like. The tribes feel that infringes on the compact they signed with the state years ago, a compact that gives them the right to Las Vegas-style betting. This compact is why the tribes, which there are dozens of in the state, own all the casinos and no commercial properties are allowed.
Stitt has said a monopoly on sports betting would hamstring the industry — and more importantly, the revenue the state would collect on taxing it. He probably has a point. You see, the tribes would only be allowed to offer sports betting on their land. That’s because it’s federal law, for all tribes, not just in Oklahoma. Mobile betting would only be allowed within tribal property.
Looking at other states, Stitt probably has a point. In states where both retail and mobile betting are legal, it’s the apps that draw around 95 percent of all betting money. Worse, if you look at states that only have retail betting — Washington, for example, allows native casinos only to take in sports wagers — those markets are lackluster in terms of revenue creation. Due to wider accessibility, statewide mobile betting is really where the money is.
Native Casinos Aren’t Budging
Stitt’s latest push comes after years of failed negotiations with the tribes over gaming expansion. His previous attempts to renegotiate state-tribal gaming compacts ended in legal battles and his relationship with many of Oklahoma’s tribal leaders remains strained. Many of those tribes have openly said they’ll wait until Stitt leaves office to come to the negotiating table as they want to keep their sovereign rights.
The fans have only been flamed since Stitt reiterated his want of an open market. Matthew Morgan, chairman of the Oklahoma Indian Gaming Association, pushed back against Stitt’s demands, warning that the state could lose out on hundreds of millions of dollars if it attempts to override existing agreements.
“The current compacts bring in over $200 million a year for Oklahoma’s education fund,” Morgan said. “The governor’s proposal would put that revenue at risk, and tribes won’t stand for it.”
Morgan also pointed out that the state’s gaming compacts have already been approved at the federal level and that any attempt to change them could trigger legal challenges — more of them since these two sides have battled in court before (the tribes won that time).
“This isn’t just about sports betting,” he said. “This is about protecting the agreements that have been in place for years and ensuring that tribes continue to have a seat at the table.”
More Legislative Battles Over Sports Betting
Stitt’s push for a more competitive sports betting market isn’t the only proposal in play. Several bills have been introduced in the state legislature, each offering different approaches to legalization.
One of the most notable is Senate Bill 125, authored by Senator Dave Rader. This bill would allow tribes to offer sports betting as part of their existing gaming compacts, requiring them to pay an exclusivity fee to the state. The fee would range between five and seven percent and the bill would require approval from the federal government before taking effect.
Another proposal, Senate Bill 585, takes a different approach. Sponsored by Senator Bill Coleman, this bill would grant the Oklahoma City Thunder an exclusive gaming license for sports betting, while still allowing tribes to offer sports betting on their land. The idea is that the Thunder would control mobile betting outside of tribal territory, while tribes would retain control over in-person wagers. The state would take a 10% cut of net sportsbook revenues under this plan.
Meanwhile, Senate Bill 164, introduced by Senator Casey Murdock, suggests putting the Oklahoma Lottery Commission in charge of sports betting. This bill proposes high licensing fees — $500,000 upfront and $100,000 annually — while taxing sportsbooks at 15% of their adjusted gross revenue.
With multiple bills on the table, lawmakers are trying to strike a balance between tribal interests, state revenue goals, and Stitt’s push for a competitive market. But honestly, there just might be too many egos at play here. We doubt any of these proposals will be successful but we’ll monitor the situation in case we’re wrong (hopefully).
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