Oklahoma lawmakers are advancing Senate Bill 1589 (SB 1589) as part of a broader national effort to restrict sweepstakes casinos. The bill, introduced by Sen. Todd Gollihare and Rep. Scott Fetgatter, passed the Senate unanimously, 48-0, earlier in March. On April 7, it cleared the House Criminal Judiciary Committee by a 6-0 margin and now heads to the House Judiciary and Public Safety Oversight Committee.
Key Takeaways
- Oklahoma lawmakers have advanced SB 1589 from the House Criminal Judiciary Committee with a 6-0 vote.
- The bill expands gambling definitions to include virtual currencies and multiple industry participants.
- It moves on to the House Judiciary and Public Oversight Committee.
The proposal would expand Oklahoma gambling law to cover online sweepstakes casinos and virtual currencies tied to cash-equivalent rewards by defining what constitutes casino-style gaming.
In this respect, SB 1589 provides that an online casino game means any gambling carried out online that replicates slot machines, lottery games, bingo, or any other prohibited games if anything of value is involved.
Another change made under this bill is an amendment to the definition of a “representative of value” to also cover virtual currency used in a dual-currency system, provided it can be converted into cash, goods, or other assets.
Under the measure, the delivery or marketing of online casino games would therefore be classified as a class C2 felony, punishable by a fine between $500 to $2,000.
The bill does include an exception that allows tribal operators to run online social casinos on tribal lands, following consultation during drafting. Lawmakers have previously stated that offshore platforms have cost the state millions in lost revenue.
If approved by the House and signed by Gov. Kevin Stitt, the measure would take effect on Nov. 1. Oklahoma's legislative session runs through May 29, leaving time for further review. The effort follows a broader trend, with six states passing similar bans since last year. Most recently, Indiana and Maine have introduced bills to ban sweepstakes casinos.
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Tennessee bill targets broader virtual-currency systems
Tennessee lawmakers are also advancing House Bill 1885 (HB 1885), which takes a different approach to regulating sweepstakes casinos. The bill has been placed on the calendar for the House Finance, Ways, and Means Subcommittee after previously passing the House State and Local Government Committee on March 31.
HB 1885 differs from many other proposals by avoiding specific references to dual-currency systems. Rather, it is framed in broader terms, aimed at gambling-type games based on any virtual currency system. This will include both the conventional two-token system and the new one-token systems.
This difference can be attributed to recent developments within the industry. Some operators, including Card Crush and ClubWPT Gold, have shifted to single-currency systems to navigate laws targeting dual-currency structures.
A companion measure, Senate Bill 2136, has not progressed since passing the Senate on March 3.
HB 1885 remains the primary bill under consideration, but it must still pass its chamber before advancing. Tennessee's legislative session is scheduled to end on April 24, leaving limited time for the bill to complete the process and reach the Governor.
