Oklahoma Bans Sweepstakes Gaming After Veto Override

Oklahoma has added online sweepstakes casinos and social sportsbook products to its illegal gambling rules after lawmakers rejected Gov. Kevin Stitt and forced Senate Bill 1589 into law.

Good to Know

• Oklahoma Senate members voted 34 to 10 to override the veto.
• The House followed with a 68 to 19 vote.
• Operators, suppliers, geolocation firms, promoters, and affiliates can face felony penalties.

The new law gives Oklahoma one of the firmer state responses to dual currency gaming. It covers mobile products that look like slots, lottery games, bingo, or other banned gambling formats when users can play with both free tokens and purchased coins.

Stitt had opposed SB 1589 because of the criminal penalties attached to the bill. Lawmakers had already passed the measure earlier in the year, then brought it back on Thursday and cleared the two-thirds bar in both chambers. The bill was then filed with the Secretary of State.

Social Sportsbooks Lose Another State Route

The ban does more than target casino-style sweepstakes games. It also cuts off sweepstakes sportsbook products, including apps that copy the look and feel of mainstream online sportsbooks such as FanDuel or DraftKings while using a different payment model.

That point carries extra weight in Oklahoma, where lawmakers have still not approved legal sports betting. A tribal sportsbook proposal failed in the Senate in April, and a separate House effort also went nowhere. As a result, Oklahoma remains one of 11 states with no legal sports betting market.

Land-based gambling tells a very different story. More than 100 casinos operate across the state, mostly through tribal gaming agreements. Indian gaming leaders backed the sweepstakes ban because Oklahoma gaming pacts keep authorized gambling under tribal control.

Under SB 1589, covered companies can face a Class C2 felony. Penalties include fines from $500 to $2,000 and up to 30 days in jail. The law applies across the business chain, not only to front-facing casino or sportsbook brands.

SB 1589 also formed part of a wider veto battle at the Capitol. Stitt vetoed more than 30 bills, including HB 4432, which would have allowed gamblers to deduct certain losses on taxes. Lawmakers overrode that measure as well.