Sports fans in Oklahoma will have to wait until the state’s next legislative session for legal sports betting to be considered.
The discouraging news comes after House Bill 1027 failed to advance through an Oklahoma Senate committee before Thursday’s deadline. The bill, which proposes to legalize both online sports betting sites and retail wagering, was passed by the state’s House of Representatives in March following a 66-26 vote. HB 1027 gained support from the House after the bill passed through its House Appropriations and Budget Committee by a 27-4 vote that same month.
HB 1027, which proposes to regulate sports betting through Oklahoma’s 35 tribes, failed to pass through the Senate committee due to lawmakers wanting more dialogue between the tribes and Gov. Kevin Stitt. Lawmakers had expected HB 1027 to be discussed with the state’s budget.
“Tribes didn’t weigh in on this as heavily as they could have. Hopefully, they will in the future as we make further progress,” Rep. Ken Luttrell — HB 1027’s co-sponsor — told the Tulsa World.
How the bill would work
HB 1027 — introduced on February 2 — requires Oklahoma’s tribes to tax sports betting on a laddered scale. Each tribe, which holds exclusive gaming rights in Oklahoma, would be required to pay the state a tax rate of 4% for the first $5 million, 5% for the following $5 million, and then 6% for $10 million or more. The revenue from wagering would then go back to the residents.
HB 1027 proposes to allocate 12% of revenue from sports betting toward Oklahoma’s General Revenue Fund, with the remaining 88% to be given to the Education Reform Revolving Fund.
Sports betting is projected to add up to $9.4 million annually to the state’s budget, according to the state Office of Management and Enterprise Services.
Surrounding states
A trio of Oklahoma’s neighboring states is already reaping the benefits of sports betting. Colorado, which legalized sports betting in 2020, reported a total handle of $547.1 million in January, up from $518 million for the month prior. Kansas, which launched sports betting in 2022, took in $206.1 million in wagers in January — a 12% increase compared to December.
Arkansas, which legalized sports betting in 2018, had a total handle of $33 million in January — a record for The Natural State. Oklahoma’s other neighboring states, which include Texas, Missouri, and New Mexico, have all yet to legalize sports betting in some capacity.
