Oklahoma legislators reignite sports betting legalization drive

Oklahoma legislators will soon debate a potential legalization of sports betting following the filing of new legislation authorizing the vertical via Native American operators.

House Bill 1027 was filed by Republican Ken Luttrell on December 29 and would, if passed, see the state join the likes of its neighbours Kansas and Arkansas, where sports betting launched last year.

Subject to at least four Indian tribes signing up to the bill, it would allow the Oklahoma Horse Racing Commission (OHRC) to issue licenses to conduct so-called “authorized gaming” in the state, with in-person and online wagering permitted.

These include tribal operators and a limited number of racetrack and pari-mutuel wagering operators.

In respect of the permit to offer sports betting in Oklahoma, the bill calls for a sliding scale of payments to the state based on the operators’ respective revenue.

Tribal operators would have to pay at least 4% of the first $5m in annual gross revenue from sports betting to the state, rising to 5% of the next $5m of adjusted gross revenue. Tribes would then pay 6% on all subsequent adjusted gross revenue going forward.

Any tribe signing up on this basis would be required to provide their agreement with the state to the US Department of the Interior, which would retain final say on approval.

If passed, the legislation would come into effect on November 1, midway through the 2023 NFL season. Luttrell, a prominent advocate of sports betting legalization, tried unsuccessfully to get a similar bill through the Oklahoma legislature last year, but it failed to get a vote.

That bill had sports betting taxed at a rate of 10% rather than the sliding scale introduced in HB 1027.

Speaking about the need for action in respect of sports betting, Luttrell said the loss in vital tax revenue for the state required immediate action.

“We’re seeing Oklahoma dollars go across state lines and being spent in other states,” he said.

Luttrell also stressed the importance of it being worthwhile for the state, something which has previously been echoed by Oklahoma Governor Kevin Stitt.

“The more they make, the more the state would benefit from it,” Luttrell said.

“And we certainly want to see our tribal partners prosper at this and it be worth their while,” he added.

Oklahoma is the third-largest home to Native American tribes in the US, behind Arizona and California.

The state has more than 30 federally recognized tribes, of which 35 have gaming compacts with the Oklahoma government. The Sooner State also has more than 100 casinos and several racetracks.

Oklahoma’s neighbor to the south, Texas, is also highly likely to have its own sports betting legalization push in 2023, with two bills already filed ahead of the next legislative session.