The Oklahoma Senate has passed a bill to legalise retail and online sports betting, allowing the state’s tribal casinos to operate sportsbooks while also granting the NBA’s Oklahoma City Thunder a potential role in the market.
Reportedly, the senate Bill 585 narrowly secured approval, passing with 25 votes in favour, 15 against, and seven abstentions, after initially failing by a single vote. The legislation now moves to the House of Representatives for further consideration.
If enacted, the bill would permit each of Oklahoma’s 38 federally recognised gaming tribes to offer retail and online sports betting within their tribal lands. The Oklahoma Horse Racing Commission would oversee regulatory functions, ensuring compliance with industry standards.
A key amendment to the bill grants the Oklahoma City Thunder an opportunity to obtain a licence for a sportsbook partnership. This provision would allow the team to facilitate mobile sports betting beyond tribal lands, including in Oklahoma City’s metropolitan area.
Under the proposed framework, revenue from the Thunder’s sportsbook would be distributed among all participating tribes in accordance with the state’s Model Tribal Gaming Compact.
The bill proposes a 10 percent tax rate on online sports betting revenue, which could provide a much-needed economic boost, especially in light of the recent elimination of the grocery tax, which is expected to impact state finances in 2025.
However, the bill faces opposition from Governor Kevin Stitt, who has consistently opposed granting exclusive control of sports betting to tribes. He argues that such an arrangement creates an unfair monopoly.
Governor Stitt has previously advocated for a more open-market model that would allow non-tribal entities, such as the state lottery and racetracks, to operate sportsbooks. The Thunder provision could be a strategic attempt to secure his approval by incorporating a non-tribal betting operation under tribal oversight.
The proposal follows years of political disputes over sports betting in Oklahoma, which intensified after the U.S. Supreme Court struck down the federal ban on wagering in 2018. Previous attempts to renegotiate gaming compacts in 2019 led to legal conflicts between Governor Stitt and several tribes over revenue-sharing agreements.
The Oklahoma Indian Gaming Association (OIGA) has indicated a willingness to collaborate on the bill, with Chair Matthew Morgan stating that tribes will “attempt to be inclusive of other stakeholders within the parameters of the law.”
The bill now moves to the House, where lawmakers will weigh its potential impact and any necessary amendments. While its passage in the Senate marks a significant step forward, disagreements between tribal and state officials may continue to present hurdles to final approval.
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