The state of Oklahoma could soon see a more expansive sports betting environment, thanks to a new plan put forward by Gov. Kevin Stitt. Detailed last Thursday, his proposal outlines a strategy for expanding sports betting across the state, with in-person wagering to be handled by Tribal operators, and mobile betting facilities provided by other authorized operators within the state.
Under Gov. Stitt’s proposal, mobile betting activities would face a 20% tax levy. This plan would enable residents across the state to place bets via their mobile devices, provided by operators that have secured an operating license within Oklahoma. Oklahoma’s coffers could also benefit from the plan, which includes an initial license fee of $500,000, and a subsequent annual fee of $100,000.
When it comes to brick-and-mortar establishments, retail sports betting would fall under the jurisdiction of recognized Tribes at a federally level. Gov. Stitt has outlined that this would be dependent on revisions to current tribal gaming compacts that would allow these Tribes to offer in-person betting within the state. A lower tax rate of 15% would be instated for traditional in-person wagers.
The presented plan also advocates for the formation of guidelines and norms governing both retail and mobile betting sectors. The aim of these regulations would be to build an environment characterized by transparency, accountability, and consumer protection, according to a statement from Gov. Stitt.
Moreover, the plan includes provisions to defend student-athletes from any potential harm that might be inflicted by sports betting. Bets based on individual student-athletes’ performances are prohibited, as are wagers based on player injuries, referees, coaches or prop bets for college sports. Even with these protections in place, the governor expressed his eagerness to receive input from the NCAA.
Reservoir of Tax Revenue from Legal Betting
Reflecting on the plan, Gov. Stitt stated that he made a promise to Oklahomans that sports betting would be done in an appropriate and correct manner, which is what this plan seeks to accomplish. Remarkably, there are 35 states that presently offer legal sports betting. Gov. Stitt has recognized that legalized sport betting would amount to a rich source of tax income for Oklahoma. He concluded: “The tribes have the infrastructure to include it in their existing arrangements, while Oklahomans can engage in wagering directly from their mobile devices.”
“ With sports betting already legalized in thirty-five states, it can serve as a substantial revenue stream for the state.“
Oklahoma Governor Kevin Stitt
The announcement follows last month’s rejection of two tribal-state gaming agreements endorsed by Gov. Stitt by the Joint Committee on State Tribal Relations. In an effort to boost state revenue, Gov. Stitt has previously attempted to negotiate updated gaming compacts with four of Oklahoma’s tribes. The two unsuccessful proposals were dismissed amid concerns of an undue expansion of casino gambling across the state.
