Despite the Sooner State possessing 143 casinos, the highest number of casinos across the nation, the drive to legalize sports betting in Oklahoma has encountered a persistent standstill.

Sports betting in the Sooner State: An overview

The legal landscape in Oklahoma grants Native American tribes an exclusive right to gaming activities. This translates to a scenario where commercial entities, such as Bally’s or Caesars, are precluded from establishing casinos in the state or offering online betting platforms.

A prevailing challenge revolves around the ongoing disagreements between Gov. Kevin Stitt and the state’s tribes, a matter emphasized by Matthew Morgan, the chairperson of the OIGA. Sharing his thoughts during the OIGA conference last week, he conveyed, “We have an impasse with the chief executive of the state of Oklahoma. I will continue to hope that somewhere along this journey that he will change the way he acts towards our tribes.”

Stitt, who holds membership in the Cherokee Nation, has faced a contentious relationship with most of the Oklahoma tribes since his endeavour to renegotiate the state’s tribal gaming agreements met with failure.

A case study for legalising sports betting?

John Billings and a close-knit circle of companions embark on frequent road trips to Kansas and Arkansas, engaging in an activity that remains unauthorized in Oklahoma: placing sports bets.

“The money you spend on hotels, dining, drinks and things of that nature — would all stay here, locally,” he expressed.

Billings, a 48-year-old Tulsa resident employed in the energy sector, asserted that the frequency of his out-of-state betting excursions might dwindle to “zero” once the practice obtains legal status within Oklahoma.

“With all the casinos we have here, we haven’t fallen off the map,” he said. “It’s just the modern thing to do.”

Meanwhile, Stephen Crystal, the CEO of a globally renowned gaming management firm, encapsulated the U.S. sports betting landscape since its legalization five years ago in succinct terms:

“It’s been a wild ride,” said Stephen Crystal of Las Vegas-based SCCG Management.

This exhilarating journey continues, marked by a staggering sum of nearly a quarter trillion dollars and growing, legally wagered.

“Despite not being as profitable as people had hoped in the beginning because of the taxation, cost structures and the marketing expenses,” he said, “I think a core group of operators and suppliers have found their way five years later, and I think we’re poised to see sports betting continue to grow.”

During the annual conference and trade show of the Oklahoma Indian Gaming Association in Tulsa last week, Crystal was among the panellists in a breakout session.

Since the U.S. Supreme Court’s 2018 verdict abolishing the federal ban on sports betting beyond Nevada, over $246.4 billion has been legally staked on sports across more than 30 states by mid-August, as per legalsportsreport.com.

Over this five-year span, states, tribes, and local governments have collectively received more than $3.5 billion, according to the same source.

“The first five years have been really a time for operators getting the basics correct … dealing with the opening of so many jurisdictions,” Crystal said.

“I don’t think we’ve seen anywhere near the innovation we’re going to see. Obviously, the leaders in the marketplace — the four or five top companies — control almost 90% of the market nationwide and that will change over time,” he said.

“Things like in-play betting, same-day parlays — the things that allow people to enjoy an interactive experience … I think I even saw that professional pillow fighting was going to be added to the sports books. I think if we can add pillow fighting … I’ve seen putt-putt golf … I think you’re seeing a proliferation of niche sports that is actually quite exciting.”

“Sports (betting) can be very attractive to the next generation, and I think we’ve just begun to see what that can be.”

Disputes with tribes have halted legalisation

Returning to the political situation in Oklahoma, Governor Kevin Stitt has found himself in disagreements with tribes on multiple fronts, encompassing topics such as tobacco compacts, hunting and fishing licenses, and a range of concerns stemming from the U.S. Supreme Court’s McGirt ruling.

“It’s like two divorced parents who are fighting over the kids,” said Jack “The Fat Jack“ Ross, a professional sports better and handicapper who grew up in Norman and has been in the business 25 years.

“Nothing is going to happen if the governor and the tribes can’t come to some sort of agreement.”

The year began with Stitt voicing his endorsement for the legalization of sports betting. This sentiment was translated into legislation that successfully gained approval in the House. However, its progression came to a halt in the Senate.

Sports betting: In-person and mobile as an added component

Representative Ken Luttrell, a Ponca City Republican, introduced a legislative proposal aiming to introduce in-person and mobile sports betting as a supplementary component to the state-tribal model gaming compact. This marked the second consecutive year in which Luttrell advocated for the legalization of sportsbooks.

As currently formulated, HB 1027 outlines a tiered structure of exclusivity fees: 4% on the initial $5 million wagered per month, 5% on the subsequent $5 million, and 6% on any amount exceeding that threshold.

Luttrell emphasized the potential of sports betting to yield up to $9.35 million annually for the state. Of this sum, 12% would find its way into the general revenue fund, while the remaining 88% would be allocated to education.

In the vicinity, states such as Colorado, Louisiana, and New Mexico have also embraced the legalization of sports betting, joining the ranks alongside Kansas and Arkansas.

“All theses states that don’t have it, they are just missing out,” Ross said.

He further emphasized that legalizing sports betting serves to mitigate the sometimes illicit nature associated with underground wagering.

“It’s much better than dealing with Guido the killer pimp,” he said. “Illegal bookies are much better when you’re losing than when you’re winning.”

Addressing ethical concerns with sports betting

Ross also countered objections to legalised sports betting rooted in concerns of addiction or religious considerations.

“These states that have it, they have established specific funds as part of it to help people who have a problem,” he said. “In Oklahoma, you get a 1-800 number and a ‘good luck.’”

He highlighted that research has similarly indicated that activities like lotteries, slot machines, and other gaming forms tend to pose a more significant issue for certain individuals compared to sports betting.

“There’s nothing in the Bible that says anything about sports betting,” he said. “With everything you can bet on here … it’s pure hypocrisy to say ‘We shouldn’t have legal sports betting.’ Ultimately, people don’t want to be told what to do.”

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