Sen. Dave Rader has submitted a bill that would legalize in-person and mobile Oklahoma sports betting for tribes that have a compact with the state.
If the bill passes through the Senate and the House and gets Gov. Kevin Stitt’s signature, tribes with an existing compact would have to create an add-on to their compact titled “[Name of tribe] and State of Oklahoma Gaming Compact Sports Pools Supplement (Gaming Compact Supplement).”
At least four tribes would have to add sports betting to their compacts.
Tax rates would range from 5% to 7%
Senate Bill 125 calls for the following tax brackets, which are based on the net win a tribe receives each year:
- 5% on the first $5 million
- 6% on the next $5 million
- 7% on all revenue beyond $10 million
The state would use the tax revenue that tribal sports betting generates in the following manner:
- 88% for education
- 12% for the state’s general fund
The bill’s proposed tax rates are lower than neighboring states such as Arkansas (up to 20%), Missouri (10%), and Kansas (10%).
The first $20,833.33 of tax revenue would be used for the “treatment of compulsive gambling disorder and educational programs related to such disorder,” the bill notes.
How Oklahoma sports betting could compare to other states
Oklahoma would join states such as Maine and Florida that allow sports betting only through federally recognized tribes.
For example, the Seminole Tribe of Florida is the state’s exclusive sports betting provider. It offers online wagering through Hard Rock Bets.
Oklahoma is a different market from Florida and Maine, though. Its casino industry has more than 140 tribal properties, which is several times more than Florida and Maine combined.
And while Oklahoma’s land-based casino market is vast, it will likely only make up a fraction of sports betting revenue if SB 125 passes. The US market has shown that states with legal sports betting generate well over 90% of their handle (total amount bet) from online sports betting.
Here’s a projection of how much handle Oklahoma sportsbooks could produce based on November averages from states with similar populations:
| Population (2023 estimate) | November Handle | Per person average | |
|---|---|---|---|
| Louisiana | 4,573,749 | $413,465,532 | $90.40 |
| Kentucky | 4,526,154 | $301,740,758 | $66.67 |
| Oregon | 4,233,358 | $87,387,636 | $20.64 |
| Connecticut | 3,617,176 | $228,155,465 | $63.08 |
| Average | 4,237,609 | $257,687,347.75 | $60.81 |
| Oklahoma (projected based on per-person averages) | 4,053,824 | $246,513,037 | $60.81 |
Based on existing data, Oklahoma could see around $250 million in handle in November (a popular sports betting month due to the NFL being in full action) when the market matures.
