Oklahoma Takes Another Shot at Legal Sports Betting with SB 125

What SB 125 Proposes

The bill outlines a framework for both in-person and mobile sports betting, allowing wagers on the outcomes of sporting events and other non-animal racing events. However, horse racing and other animal-related wagers remain excluded.

The bill grants Oklahoma tribes the exclusive right to operate sports betting, provided they amend their existing gaming compacts with the state. These amendments must adhere to a model addendum included in the bill, ensuring consistency across agreements.

Tribes would pay the state based on their monthly net win (total wagers minus payouts and federal taxes):

• 5% on the first $5 million of net win.
• 6% on the next $5 million.
• 7% on anything exceeding $10 million.

The bill allows tribes to retain an amount equal to their state payments to ensure offering sports betting does not lead to financial losses.

If passed, the bill would take effect on November 1, 2025.

Challenges to Legalization

While the proposed bill offers a clear framework, sports betting in Oklahoma remains a contentious issue. The state’s gambling industry is dominated by tribal casinos, which operate under federal and state gaming compacts granting them exclusive rights to most gambling activities.

Disagreements over tribal sovereignty have been a significant roadblock. Governor Kevin Stitt has been advocating for sports betting since 2023, proposing a model that would allow both tribal and commercial operators to offer betting services, including online options. However, tribal leaders have pushed back, arguing that Stitt’s approach undermines their sovereignty and economic interests.