Oklahoma weighs sports betting bills with several disputes still unresolved

Oklahoma’s renewed debate over sports betting enters the 2026 session with multiple bills on the table, unresolved disputes between tribal governments and the executive branch, and no clear path to regulatory consensus.

Three proposals that advanced through their chambers last year remain eligible for consideration when lawmakers convene on February 2. Supporters say the measures aim to regulate wagering already occurring through neighboring states and illegal platforms, while opponents point to unresolved compact and governance issues.

“With the current relationship between tribal leaders and the executive branch, it would be very hard to see anything come to fruition this session,” said House Appropriations and Budget Committee Chairman Trey Caldwell, R-Lawton, in a NonDoc report.

Sen. Bill Coleman, R-Ponca City, and Rep. Ken Luttrell, R-Ponca City, have authored HB 1047, which would allow tribes to submit sports betting supplements to existing Model Tribal Gaming Compact agreements. The proposal would require a 10% exclusivity fee on adjusted transaction total revenue and allow wagering at roughly 130 tribal casinos.

Another measure, SB 585, would legalize sports betting under the Model Tribal Gaming Compact using current exclusivity fee rates of 4% to 6%. The Senate-passed version would also authorize the Horse Racing Commission to issue one event wagering license to the Oklahoma City Thunder, which could sublicense wagering rights to one tribal-approved operator for mobile and retail betting on non-tribal land. Gross revenues would be shared among tribes participating in the compact.

Coleman and Luttrell have also filed HB 1101, which mirrors HB 1047 but would send the issue to voters through a statewide ballot.

“These bills represent a balanced approach, ensuring both tribal and public interests are served,” Luttrell said last session. “By legalizing sports betting, we’re not only creating new opportunities but also capturing revenue from millions of dollars that are currently being bet illegally or out of state.”

Gov. Kevin Stitt has criticized gambling broadly and proposed a commercial licensing system that would allow any operator to open a sportsbook for a $500,000 license fee, with $100,000 annual renewals and a 15% tax on revenue.

“It’s horrible,” Stitt said last fall. “If I had my way, I wouldn’t have gambling at all. It’s a travesty.”

Tribal leaders have warned against proposals that weaken compact exclusivity and argue that the state is doing a poor job when it comes to prohibiting other gambling activity. Oklahoma Indian Gaming Association Executive Director Matthew Morgan told lawmakers that tribal casino gaming, horse racing, and the Oklahoma Lottery are the only legal gambling operations in the state.

“Every other entity in this state is operating illegally. It’s widespread and concerning,” Morgan said.

Industry representatives said illegal wagering already occurs statewide. Sports Betting Alliance Chief Operating Officer Frank Sizemore said sports betting operates in 39 states and generates a total economic impact of $325 billion and nearly 2 million jobs. With about 3 million Oklahomans age 21 or older, Sizemore estimated $200 million to $400 million in annual revenue once the market matures.

However, lottery officials have cautioned that sports betting could affect existing revenues. The Oklahoma Lottery generated about $87.5 million for public education in FY 2024 on roughly $354 million in sales.

With competing frameworks, compact disputes, and veto threats unresolved, lawmakers enter the 2026 session facing continued uncertainty over sports betting policy.