Unexpected Sports Wagering Scheme Revealed in Oklahoma
A recent proposal to legalize sports betting in Oklahoma has left lawmakers and tribal officials taken aback.
Governor Kevin Stitt (R) introduced the sudden plan on November 2, with tribal leaders such as the Choctaw Nation feeling unconsulted. Spokespersons for the House Speaker and Senate President have confirmed that they had no knowledge of any plans with legislators prior to Stitt's announcement.
The announcement was made while Stitt was abroad in Israel last week.
The Governor's plan includes legalizing in-person sports betting at federally recognized tribal gaming sites, while imposing a 15% tax on the revenue generated. Tribes would not be granted the same exclusivity on mobile sports betting as they are with physical venues.
"I promised Oklahomans that if we pursued sports betting, we would do it right, and this plan does just that," Stitt said in a statement. "Thirty-five states have already legalized sports betting, and it'll be a significant revenue stream for the state."
The Chief of the Choctaw Nation, Gary Batton, expressed concern with the proposal.
"Upon initial review, we don't believe this plan represents the best interests of Oklahoma or the tribal nations that have contributed so much to the state," Batton said in a statement.
According to existing tribal gaming compacts in Oklahoma, the tribes have sole rights to offer gambling in the state.
Legislators' Reactions
Oklahoma State Senators and Representatives who have sponsored bills on sports betting have shared their disappointment at not being consulted.
"It's frustrating that he didn't think it was necessary to collaborate with those of us who have been working diligently on this significant issue for over a year now, but I'm hopeful that will change in the coming weeks," said Sen. Bill Coleman (R-Ponca City).
Sen. Coleman attributes the stalled progress of sports betting bills to a lack of communication between tribal leaders and the executive branch.
A bill that passed in the House but was blocked in the Senate this year could be revived in February 2024. House Bill 1027 aims to legalize both in-person and mobile sports betting to supplement Oklahoma's model gaming compact with the tribes.
Stitt's Relationship with Tribes
Governor Stitt has experienced a rollercoaster relationship with several Oklahoma tribes since his failed attempt to renegotiate the state's gaming compact for higher state revenues.
In 2021, the tribes gave the state $191.5 million in gaming fees from over $3 billion in revenue.
Recently, a legislative committee rejected a gaming compact that Stitt had negotiated with two tribes in the state – the latest in a series of setbacks for the Governor's attempts to change the state's tribal gaming approach.
Stitt's plan also included mobile wagering, which would be handled by organizations licensed by the state with a 20% tax rate. Each organization would pay an initial $500,000 licensing fee and $100,000 annual fee.
Any attempt to legalize sports betting without tribal support will likely face a tough time passing through the Oklahoma Legislature.
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Source: www.casino.org
