Oklahoma lawmakers overwhelmingly advanced an online and retail sports betting authorization proposal last week but it remains unclear if the bill has support from the state’s leading gaming tribes.
The Oklahoma House of Representatives passed the sports betting bill last week with supermajority support, sending it to the Senate. An identical version must pass the Senate, but the strong backing in the House underscores political support.
Should it pass the Senate, the bill will likely be signed into law by Gov. Kevin Stitt. The governor has tried for several years to bring legal sports betting to the state.
Tribal support unclear
Though politicians seem on board, it’s still unclear about support from the state’s gaming tribes.
The legislation gives exclusive mobile and retail sports betting rights to the tribes. This was a clear political move in a state dominated by tribal gaming and with no commercial casino interests.
However, the bill would also amend the gaming compact between the state government and the tribes that permits the current structure of casino gambling. Tribes have been resistant to amending the compact in any capacity as it is considered to be among the most favorable for tribal interests of any such agreement in the nation.
Stitt previously signed sports betting authorization deals with two smaller gaming tribes in 2020, but those were not supported by lawmakers and were considered invalid by the state’s attorney general. The two tribes were also removed from the state’s leading tribal gaming association for signing the deals.
The previous efforts also underscore the differences between the state’s large and small gaming tribes. While several of Oklahoma’s roughly 100 casinos are among the world’s largest, many offer little more than some slot machines at what are essentially truck stops or convenience stores.
These smaller tribes are more eager to approve sports betting as a way to attract new customers. The larger tribes are more reticent, fearing an amended compact that includes sports betting, which for the bigger tribes would be a comparatively small new revenue source, could jeopardize the structure of the far more lucrative deal currently regulating offerings such as slots and table games.
This means that even with the legislative approval of new sports betting authorizations, many larger tribes (and potentially smaller ones) may not agree to the new compact. Since any realistic effort to approve Oklahoma sports betting would politically have to run through the tribes, this could effectively still keep the state without any legal wagering options.
Possible market structure
If passed by lawmakers and agreed to by the tribes, Oklahoma could have one of the most robust in-person betting markets in the country.
Oklahoma already has the highest number of per capita gaming centers outside Nevada. Dozens of casinos and smaller gaming venues statewide could potentially open in-person sportsbooks. With its comparatively smaller population, Oklahoma could join Nevada as one of the few states that see more than 10% of its total online and retail sports betting handle come from in-person offerings.
The bill would also allow Oklahoma tribes to partner with third-party online sports betting platforms. Though Oklahoma doesn’t have any major commercial casino partnerships, the roughly three-dozen tribes operating gaming properties in the state means there would be ample opportunities for deals with a wide range of US operators.
That includes US market share leaders FanDuel, DraftKings, BetMGM and Caesars, all of which seem likely to enter any potential Oklahoma market. Other leading brands including PointsBet, BetRivers and Barstool, as well as growing operators such as bet365, Fanatics and Betr, could also seek deals.
As with some other tribal gaming states, tribes could work with third-party tech operators to create self-branded sportsbooks as well.