Oklahoma Gov. Kevin Stitt has vetoed Senate Bill 1589, stopping a proposal that would have sharply expanded the state's gambling law to cover online casino-style games and dual-currency sweepstakes platforms.
Key Takeaways
- Oklahoma Gov. Stitt vetoed SB 1589, blocking Oklahoma's proposed ban on dual-currency sweepstakes casino platforms.
- The bill passed both chambers easily before Stitt rejected it, despite broad legislative support.
- Lawmakers have until May 29 to override the veto and revive the sweepstakes ban.
SB 1589 had moved through the Legislature with rare ease. The Senate approved it 48-0 in March, then the House passed it 65-21 in early May before sending it to Gov. Stitt, who vetoed the bill and others on May 7. The governor has yet to explain the reason behind his decision.
The measure would have targeted online games that simulate slots, lottery, bingo, or other prohibited gambling formats. It also amended the definition of a “representative of value” to include the dual-currency structure used by sweepstakes casinos, where one coin type is normally used for play, and another can be tied to prize redemption.
Under the bill, delivering or promoting unregulated gaming, including online sweepstakes casinos, would have been treated as a Class C2 felony, with possible fines from $500 to $2,000 and jail terms of up to 30 days.
The bill also reached beyond casino operators. Its liability provisions included owners of geolocation providers, gaming suppliers, platform providers, promoters, and affiliates. It carved out activity conducted on Indian lands in compliance with the Indian Gaming Regulatory Act and preserved gaming covered by Oklahoma's Charity Games Act.
State lawmakers now have until May 29 to reverse Gov. Stitt's veto. Without an override, the veto leaves Oklahoma outside the group of states that have recently moved to ban sweepstakes casino models outright.
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Sports betting defeat leaves Oklahoma gambling fight split on two fronts
The veto came after Oklahoma's Senate had already rejected a separate attempt to legalize sports betting through tribal operators, leaving lawmakers with no clear path for either gambling expansion or a sweepstakes crackdown.
House Bill 1047 failed in the Senate on April 22 by a 21-27 vote. The measure, backed by the Oklahoma City Thunder and the Oklahoma Indian Gaming Association, would have allowed tribal nations to offer retail and mobile sports betting as part of Oklahoma's tribal gaming framework.
The bill was carried by Sen. Bill Coleman and Rep. Ken Luttrell, both Republicans from Ponca City. Its structure would have given tribes exclusive authority over sports betting, with the state receiving 8% of sports betting earnings. Revenue from NBA and WNBA wagers would have gone to the Strong Readers Act Fund.
Supporters framed the bill as a regulated alternative to sports betting already available through other channels. Opponents raised concerns about gambling addiction, and Stitt's office opposed expanding the existing tribal gaming compact.
Local media outlets reported at the time that the governor's office criticized the compact for lacking transparency and for failing to set fair market rates. Sen. Coleman asked for the issue to be reconsidered after the vote, but the bill did not reach the House.
Oklahoma, therefore, remains one of the few states without legal sports betting.
