As the 2025 legislative session looms in states across the US, Oklahoma is once again on the brink of addressing sports betting legalisation with the arrival of a new bill in the Senate.
Senator Dave Rader has filed Senate Bill 125, a proposal that aims to pave the way for tribal-operated sports betting within the state. However, the bill’s success is far from certain, as entrenched political and tribal tensions could hinder its progress.
The proposed legislation seeks to amend Oklahoma’s Model Tribal Gaming Compact, which governs the state’s gambling activities. Under the bill, tribes would have the option to negotiate amendments to their gaming compacts to allow both in-person and mobile sports betting.
However, the bill stipulates that at least four tribes must agree to these amendments before the state authorises sports wagering.
A progressive tax structure is central to the bill’s economic framework. It imposes taxes based on annual net revenues from sports betting.
Tax rates would be set at 5% on the first $5m in net revenue, 6% on the next $5m and 7% on all subsequent revenue.
Revenue generated from these taxes would be allocated primarily to education (88%), with the remaining 12% funnelled into the state’s general fund. A small portion — $20,833.33 annually — would be reserved for programmes addressing compulsive gambling.
OK big on sports
Oklahoma boasts a passionate sports culture, driven largely by college athletics and a strong connection to professional teams in nearby states.
The University of Oklahoma Sooners and Oklahoma State University Cowboys dominate the local sports scene, with football being particularly celebrated. While Oklahoma does not have its own NFL team, residents have cultivated deep loyalties to professional teams in neighbouring regions.
The Dallas Cowboys, often referred to as “America’s Team,” enjoy significant popularity in Oklahoma due to their proximity and historic success.
Similarly, the Kansas City Chiefs have a robust following, especially after recent Super Bowl victories, which have solidified their presence in the hearts of many Oklahomans.
These alliances reflect Oklahoma’s geographical positioning and sports enthusiasm, with fans embracing teams that align with their regional identity. The absence of an NFL franchise within the state does little to diminish the fervour for football among its residents.
Challenges from the Governor’s office
Since Governor Kevin Stitt assumed office in 2018, sports betting legislation has faced significant hurdles, largely due to strained relations between the governor and the state’s tribal entities.
Tribes hold exclusive rights to gambling in Oklahoma, and many lawmakers in Stitt’s Republican Party have expressed frustration over his handling of tribal matters.
Last year, Senator Casey Murdock introduced a sports betting bill that aligned with a proposal from Stitt. However, the legislation stalled in committee, largely because of resistance rooted in the governor’s contentious relationship with tribal leaders.
Representative Ken Luttrell, who successfully advanced a sports betting bill through the House in 2023, saw his efforts derailed in the Senate for similar reasons.
Despite past conflicts, tribal leaders have expressed a willingness to engage in discussions about sports betting. Oklahoma Indian Gaming Association (OIGA) Chairman Matthew Morgan emphasised the tribes’ openness to collaboration.
According to Morgan, any proposed solution must respect the current compacts, align with supplemental provisions already outlined, and ensure mutual economic benefits.
Tribal leaders also anticipate a shift in dynamics, with new faces and leadership in the state legislature potentially providing fresh opportunities for dialogue.
However, lingering distrust between the tribes and the governor’s office underscores the need for careful negotiation.
Following in other states’ footsteps
If Senate Bill 125 is enacted, Oklahoma would join states like Florida and Maine in allowing sports betting exclusively through federally recognised tribes. However, Oklahoma’s gaming market is markedly different.
With over 140 tribal casinos, the state boasts one of the most expansive tribal gaming networks in the country — far surpassing the number of facilities in Florida and Maine combined.
Nonetheless, Oklahoma’s sports betting revenue would likely pale in comparison to its casino industry. In other states, over 90% of sports betting revenue is derived from online platforms, a trend expected to hold true if Oklahoma enters the market.
However, for Senate Bill 125 to become law it faces an uphill battle. Approval by both legislative chambers and Governor Stitt’s signature is required.
Should the bill pass, tribes would need to negotiate compact amendments titled the “[Name of tribe] and State of Oklahoma Gaming Compact Sports Pools Supplement (Gaming Compact Supplement).”
The bill’s proposed tax rates are competitive, offering lower rates than neighbouring states like Arkansas (up to 20%), Missouri (10%), and Kansas (10%).
This could make Oklahoma an appealing market for tribal operators. It could also conceivably put additional pressure on Texas, which continues to fight sports betting legalisation.
Despite these favourable elements, the bill’s fate hinges on resolving longstanding political and tribal tensions.
The upcoming legislative session, beginning on 3 February, will reveal whether Oklahoma can finally achieve consensus on sports betting — a prospect that could significantly reshape the state’s gaming landscape.