Sports betting bill reaches halftime, advances to Senate
The odds are rising that Oklahoma will allow sports betting this year.
By a 2-1 margin, the Oklahoma House advanced House Bill 1027 to the Senate on Tuesday. The bill would allow tribes to add sports betting to existing gaming compacts they have with the state.
Tribes could offer in-person or online sports betting, or both.
The bill is essentially halfway through the legislative process. After passing the House, the bill moves across the chamber where it will begin the Senate committee process.
The current structure of the bill ensures that even if it passes the Senate, it will eventually land in a conference committee to hash out any final adjustments.
The final version of the bill would then have to be given approval, again, by both the House and Senate.
The bill’s author, state Rep. Ken Luttrell, said the state will receive a percentage of revenue earned from bets made in Oklahoma on sporting events, which would add an estimated $9 million a year to the state budget.
“Right now, Oklahoma is missing out on a huge financial opportunity for both our state and our tribes,” said Luttrell, RPonca City. “Oklahomans are traveling across state lines to participate in sports betting, and we’re losing those dollars. It makes economic sense to provide sports betting as an option.”
If passed, tribes with a sportsbook would pay the state 4% of the first $5 million made in a month. The fee increases to 5% for the next $5 million of betting revenue, and then a 6% fee for anything over $10 million earned in a month.
According to the bill, 12% of revenue
paid to the state would be assigned to the general revenue fund. The remaining 88% of revenue would be earmarked for the Education Reform Revolving Fund.
Many states already have some form of sports betting, including neighboring Kansas and Arkansas. Luttrell has said Oklahoma is missing out on money from those bets.
During debate on Tuesday, however, Luttrell said his support is less about revenue and more about regulating an unregulated market.
There is no consensus yet among leaders of the 35 tribes that operate gaming in Oklahoma.
Every tribal nation has unique factors to consider, such as costs, geography and competition. But Matt Morgan, chair of the Oklahoma Indian Gaming Association, has said tribes are cautious of upending the existing state-tribal model gaming compact, which covers slot machines with random odds and some types of table games.
“OIGA looks forward to staying engaged as this legislation is taken up by the Senate,” Morgan said Tuesday.