Oklahoma’s Gambling Legislation Stalls amid Stakeholder Disagreements

Oklahoma’s latest attempt to legalize sports betting has encountered a substantial roadblock due to ongoing disagreements between the Governor and the state’s tribes. Despite Governor Kevin Stitt’s public push for sports betting legalization during the last legislative session, there has been little progress, according to Matthew Morgan, chairman of the Oklahoma Indian Gaming Association.

Tribes Were Disappointed in the Lack of Communication

Since the US Supreme Court’s 2018 decision to strike down the Professional and Amateur Sports Protection Act, which had prohibited state-sponsored sports gambling, Republican lawmakers in Oklahoma have made several unsuccessful attempts to legalize sports betting. The latest such drive in November saw Governor Stitt introduce a new legalization plan, which faced immediate pushback from tribal leaders.

Stitt’s proposal gave tribes the exclusive right to operate in-person betting but would allow any operator willing to pay $500,000 for a license to operate mobile gaming. Critics argued that online bets, which make up 95% of the revenue, should fall under the existing state-tribal gaming compacts that grant tribes exclusive gaming rights.

Stitt’s plan faced immediate pushback from tribal leaders who said they had no input in the drafting process. The Governor has a contentious relationship with tribal leaders, stemming from previous disputes regarding the renewal process of gaming compacts. Unfortunately, this widening rift has made it increasingly difficult to pass any legislation.

Continued Animosity Could Jeopardize Gambling Legalization

Oklahoma Indian Gaming Association chairman Matthew Morgan commented on the ongoing legislative difficulties for local news outlet Oklahoma Voice, noting that the state administration had made little effort to engage with the tribes. This reluctance to communicate represents a significant issue, as any legislation may impact the livelihoods of the association’s 25 member tribes.

From Morgan’s perspective, the state Legislature and the Governor’s Office have not shown a genuine interest in sports betting. He emphasized that sports betting is a low-profit margin business, and tribal leaders would prefer to discuss a deal within the framework of their existing compacts rather than signing new ones or taking on unnecessary economic risk.

Any discussion of sports betting never left the ground because there was just too much posturing, too much disagreement on how the industry worked.

Matthew Morgan, Oklahoma Indian Gaming Association chairman

The path to legalizing sports betting in Oklahoma remains fraught with challenges as stakeholders grapple with fundamental disagreements. As Oklahoma continues to lose potential revenue to neighboring states with legal sports betting, there is a clear impetus to find common ground and achieve a balanced and mutually beneficial agreement through dialogue, patience, and compromise from all parties involved.