Oklahoma's sports betting legalization process is at a standstill due to a dispute between Governor Kevin Stitt and tribal leaders over exclusive operating rights. Currently, the NBA team Oklahoma City Thunder has proposed a compromise, suggesting that the state government authorize either the team or a tribal consortium to share the statewide sports betting license, with revenues distributed proportionally. Although related legislation passed the House this year, it failed to receive a vote in the Senate. Governor Stitt remains opposed to tribal exclusivity, while the tribes refuse to concede based on existing agreements. The Thunder's involvement offers new ideas for resolving the long-standing deadlock, but balancing the interests of all parties remains a key challenge.
Policy Deadlock and Points of Controversy
The legalization of sports betting in Oklahoma continues to be mired in deadlock due to differences between Governor Stitt and tribal leaders. Stitt has made it clear that he will veto any bill that grants tribes exclusive rights to sports betting, while the tribes insist on their exclusive status based on existing gambling agreements, emphasizing that introducing non-tribal operators would violate these agreements. In 2024, the tribes will pay the state government $210 million in exclusivity fees, further strengthening their position. Representative Ken Luttrell has pointed out that breaking the agreement could lead to legal challenges and threaten the stability of the casino industry, which is a crucial pillar of both tribal and state economies.
Thunder's Proposal and Revenue Sharing
The Oklahoma City Thunder has recently participated in discussions, suggesting that the state government authorize the team or a tribal consortium to share the state's sole retail and mobile sports betting license, and establish a revenue-sharing mechanism, with 0.25% of the total betting amount going to the NBA team. This proposal aims to break the deadlock over tribal exclusivity by balancing interests through a cooperative model. This year's House Bill 1047 attempted to establish a similar framework but did not receive a Senate vote; House Bill 1101 plans to submit the issue to a voter referendum, revisiting the model used to create the state lottery in 2003.
Legislative Background and Future Prospects
In 2023, Governor Stitt proposed opening the market to commercial operators, but this was opposed by the tribes. His 2020 attempt to legalize was thwarted when the agreement was rejected by the court. Currently, Stitt is not disappointed about not achieving legalization by 2025, believing that the tribes might wait for his term to end in 2027. Meanwhile, the Choctaw Nation of Oklahoma has signed an interstate sports betting agreement with the Kambi Tribe and has launched several sports sponsorships in Texas. The Thunder's proposal offers a new direction for resolving the deadlock, but issues of operating rights distribution and legal compatibility need to be addressed.
