Impasse over gambling sinks $400M revenue bill

An expansion of tribal casino roulette and dice games helped sink a $400 million revenue package offered to Oklahoma Senate leadership Monday.

Democrats and Republicans in the House and Senate offered differing accounts of what happened, but both sides of the Capitol said that the casino measure wouldn’t find support in the Senate.

State Sen. Mike Schulz, the Senate president pro tem, said he opposes allowing Las Vegasstyle roulette and dice games in Oklahoma. The proposal, the details of which have not been publicly released, reportedly includes a provision that could eventually allow sports betting.

“For me personally, it’s a moral objection,” said Schulz, R-Altus. “I think we have too much gambling going on in this state. I think it’s too accessible. I think we have people spending bread and milk money in a casino rather than taking care of their kids.”

He also said there is an economic objection because money spent at casinos isn’t spent on sales tax-generating purchases.

The casino measure would have raised about $20 million according to

Senate leadership, but there was no fiscal analysis readily available.

Lawmakers are working to create a budget with $878 million less than the current budget.

The significance of the package was partly because of the money, but also because it was a deal reached by House Democrats and their GOP counterparts. Revenue-raising measures have to originate in the House and must have at least some Democratic support to pass off the House floor.

That includes a cigarette tax increase of $1.50 per pack. Democrats previously said they would only vote for a cigarette tax hike if they could also vote on an oil and gas production tax rate increase.

The revenue package also included restoration of some earned income tax credits and elimination of the discount given to online stores for collecting sales tax.

House leaders also agreed to a two-year, $17,000 cap on itemized deductions. Most Oklahomans take the simple, standard deduction, but taxpayers can also choose to identify and separately list each one.

Itemized deductions are useful in lowering a person’s tax bill and can be claimed on charitable donations, medical expenses, property taxes and mortgage interest.

The Oklahoma Center for Nonprofits came out strongly against the measure.

“At a time when nonprofits are asked to do more and more with fewer resources, the Legislature’s proposal to cap itemized deductions that include the charitable giving deduction will choke off funding from our donors,” President Marnie Taylor wrote in an email to members.

If it becomes law, Oklahoma would see an extra $166 million in revenue, according to House staff.

But on Monday, Inman said the Senate’s opposition to gaming expansion put the revenue package in doubt. Each bill needs final approval by both the House and Senate.

“Apparently, Senate leadership, for a variety of reasons apparently, has decided to renege on the negotiations,” Inman said during a news conference Monday morning.

Schulz said he never agreed to a package so there was nothing to renege on. Floor Leader Greg Treat said the Senate is ready to pass a cigarette tax, motor fuel tax and eliminate discounts given the oil and gas industry.

Inman, however, seemed pessimistic that lawmakers could finish their work by May 26 and avoid a special session. If the Legislature has to reconvene in June, it would cost an estimated $30,300 per day.

“We’ll see where it goes from here,” Inman said.