Oklahoma Debates Sports Betting as State Moves Toward Bitcoin Investment

Oklahoma is one of the last remaining states without any form of legalized sports betting. The road to legalization remains unclear, however, with Governor Kevin Stitt doubling down on a “fair” sports betting model that does not grant tribal exclusivity.

Gov. Stitt’s plan does not grant tribes exclusive control over both retail and online wagering. Instead, it proposes a ‘hybrid’ model, in which tribes have the right to operate in-person sportsbooks at their casinos, while online betting will be opened up to traditional sportsbook operators such as DraftKings and FanDuel.

Stitt Pushes Hybrid Sports Betting Model Despite Tribal Resistance

Stitt posted on social media platform X linking his former proposal, which met significant tribal opposition in 2023. Two years ago, he said: “I promised Oklahomans if we pursued sports betting, we would do it right – and this plan does just that.”

He continued: “It’ll be a great revenue stream for the state. Tribes will be able to add it onto their existing infrastructure, and Oklahomans can access it right from their phone.”

The state Governor has been considered an ‘immovable object’ when it comes to legalizing sports wagering. Stitt has a long history and is not much liked by the tribes in the Sooner State. In 2020, Stitt’s attempts to renegotiate Oklahoma tribal compacts were ruled illegal.

Currently, with chances of legalization remaining remote, those wishing to bet on sports in Oklahoma will continue to pursue different avenues. This includes hopping across state borders to bypass legislation or use of crypto sportsbooks, which avoid the strict regulation and legislative battles endured by traditional operators.

The Governor’s proposal would see tribes pay a 15 percent tax rate on retail revenues, with commercial operators subject to a higher 20 percent online tax rate. Commercial operators would pay $500,000 in an initial licensing fee and $100,000 per annum for renewal.

Multiple Sports Betting Bills Compete for Support in Oklahoma Legislature

Currently, there are three competing sports betting bills being debated in the Oklahoma legislature.

SB 585 would also allow the National Basketball Association’s Oklahoma City Thunder to have an online betting license tied to it. Rep. Coleman’s bill would see tribes control both retail and online betting, with a 10 percent tax rate applied. The representative suggests that it could generate Oklahoma around $20 million annually in tax receipts.

The tribes have been clear about their demands for accepting a deal. They require that any such legislation not breach existing compacts and use compact supplement provisions.

The Oklahoma Indian Gaming Association Chairman, Matthew L Morgan, has commented prior: “Any proposed new or modified gaming offering must make sound economic sense for everyone involved. Tribal Nations have always been willing to sit down and talk, in a respectful manner, about what is best for Oklahoma. That has not changed.”

House Committee Advances Strategic Bitcoin Reserve Act

While crypto betting may seem a million miles away, Oklahoma yesterday passed the Strategic Bitcoin Reserve Act (HB 1203) through the Government Oversight Committee. It will now move to the House floor.

The bill, submitted by Rep. Maynard would permit the Oklahoma treasury to invest funds into any digital currency that has a market capitalization of over $500 billion in the past calendar year.

Maynard said upon introducing the bill: “Bitcoin represents freedom from bureaucrats printing away our purchasing power. As a decentralized form of money, Bitcoin cannot be manipulated or created by government entities. It is the ultimate store of value for those who believe in financial freedom and sound money principles.”