What we know now about the state of sports betting in America
Billions of dollars are wagered on sports betting in the country every year. But some states are still on the sidelines. Here is what we know.
Some Oklahoma lawmakers want to bring the state off the sidelines of sports betting and into the game. They’re facing long odds, however.
Gov. Kevin Stitt wants to open Oklahoma’s betting market to outside competitors. Tribal officials say doing so would violate their gaming agreement with the state.
Without a consensus, efforts to legalize sports betting appear unlikely to gain traction during the legislative session this spring.
“I believe it’s still in the governor’s court and still in the tribes’ court,” said Sen. Bill Coleman, who supports legalization.
Sports betting is allowed in 38 states, including four that touch Oklahoma, and surging in popularity. Nearly 29 million U.S. adults planned to place a legal online bet on this year’s Super Bowl, according to industry estimates. The American Gaming Association also estimated a record $23.1 billion would be wagered on the game.
Still, a sports betting bill has never crossed the finish line in Oklahoma. The biggest sticking point has been how much money the state should receive for allowing the bets.
A voter-approved compact gives tribal nations exclusive rights to operate nearly all forms of gaming in the state. In exchange, Oklahoma receives a share of the money those operations bring in — about $200 million last year.
More: Mobile gaming in Oklahoma? Chickasaw Nation launches app at Winstar
Talks of expanding the compact to cover sports betting have been caught in a long-running rift between Stitt and many tribal leaders. They’ll have to work out an agreement to move forward, said Coleman, a Ponca City Republican.
“Once we get past that, let me at the table, and let’s get going,” he said.
At the same time, tribal leaders are waiting for Stitt and lawmakers to come up with a serious proposal they can consider, said Matthew Morgan, who chairs the Oklahoma Indian Gaming Association. The group represents 29 of the 33 Oklahoma tribal nations that conduct gaming.
“They do not want to negotiate multiple times, with individual lawmakers, individual chambers, the governor,” Morgan said. “We really need them to be on the same team on this, as well. I think that’s how this moves forward in a way that’s efficient.”
Two sports betting bills up for consideration in the Oklahoma Legislature
Two competing sports betting bills are currently up for consideration, though neither has moved forward in the early weeks of the session.
The first is House Bill 1027, backed by Coleman and Rep. Ken Luttrell, a fellow Ponca City GOP lawmaker. Both have described the measure, which seeks to add sports betting on to the state-tribal gaming compact, as a work in progress.
“We would be willing to change the bill to reach any agreement that is being made,” Coleman said.
More: Vetoes, lawsuits and fake memes: Oklahoma Gov. Kevin Stitt’s year working with tribes
The bill passed through the House last year with the understanding that it eventually would be updated to reflect agreed-upon terms, but it stalled in the Senate absent a deal. It would need to advance through the Senate Rules committee to move forward, Coleman said.
The second proposal is Senate Bill 1434, introduced by Sen. Casey Murdock, a Republican lawmaker from Felt in southwest Oklahoma. His bill largely mirrors the plan unveiled by Stitt in November.
The governor proposed allowing tribal casinos to take sports bets in person and allowing different operators to accept online game wagers. Tribal operations would pay 15% of revenues to the state, while online companies would pay 20%.
“I promised Oklahomans if we pursued sports betting, we would do it right, and this plan does just that,” Stitt said when he announced the proposal.
Would Oklahoma tribal nations be on board with proposed sports betting bills?
Murdock did not respond to a message to discuss the bill.
Coleman said he couldn’t see the proposal drawing any support from tribal nations, because most sports bets are placed online, not in person. He also said the tax rates proposed by Stitt likely wouldn’t pencil out for many tribal nations, because sportsbooks are expensive to set up and run on thin profit margins.
Bringing in outside competitors would violate the state-tribal gaming compact, Morgan said.
If that happened, tribal nations would file breach of compact claims, he said, which could leave Oklahoma liable for monetary damages under the terms of the compact. Tribes could also stop making exclusivity payments to the state, which add up to millions of dollars every month.
“If we’re going to continue to debate on who the operators are, I don’t think they’re serious,” about working out a sports betting agreement, Morgan said.
More: Governor announces a plan for sports betting in Oklahoma, but many hurdles lie ahead
The topic hasn’t emerged as a top priority for House and Senate leaders in the midst of bigger debates over tax cuts. Neither Senate President Pro Tem Greg Treat nor House Speaker Charles McCall responded to questions left with their spokesmen about efforts to legalize sports betting this year.
Coleman said he believes he’s worked out a way to pass sports betting through the Senate, although his plan would have to overcome some hurdles.
“We want one item from the tribes that we don’t have right now, and the Senate would move forward with sports betting,” Coleman said, declining to name any specifics. “But it’s all kind of moot right now if the governor and tribes don’t have an agreement.”
He said he’s shared an updated draft bill with the governor’s office that incorporates some of Stitt’s ideas, such as prohibiting betting on the performance of individual athletes.
The growth of sports betting in other states, including neighboring Kansas and Arkansas, is increasing the pressure on Oklahoma to eventually act, he said. Support for gambling is also building in Texas.
“If we don’t have sports betting before Texas does, that would be a major loss in revenue,” Coleman said.
Molly Young covers Indigenous affairs. Reach her at mollyyoung@gannett.com or 405-347-3534.