Oklahoma Sports Betting Initiative Runs into Trouble
The Oklahoma Sports Betting Initiative has encountered significant obstacles, primarily due to ongoing disagreements between Governor Kevin Stitt and the state's tribes. This could make it difficult for the state to join the growing list of legal sports betting states in the US.
Oklahoma Governor Kevin Stitt addressing the public. (Source: Getty Images)
LISTEN TO THIS ARTICLE:Matthew Morgan, chairman of the Oklahoma Indian Gaming Association, highlighted that despite Governor Stitt's public advocacy for legalizing sports betting during the last legislative session, there was a noticeable lack of enthusiasm to turn this proposal into reality. This lack of consensus has created a challenging path forward for Republican lawmakers who have been striving to legalize sports betting for several years.
Related: Oklahoma Lawmakers Pass Sports Betting BillRepublican efforts to legalize sports betting in Oklahoma have been ongoing since the US Supreme Court's 2018 decision to strike down the Professional and Amateur Sports Protection Act (PASPA). This landmark ruling removed the federal ban on state-sponsored sports gambling, with some exceptions, and opened the door for states to regulate sports betting independently. However, despite this opportunity, Oklahoma has struggled to pass legislation that would allow sports betting within the state.
Last November, Governor Stitt introduced his own plan to legalize sports betting, surprising both tribal leaders and lawmakers. His proposal included provisions that would grant tribes the exclusive right to operate in-person betting. However, it also allowed any vendor willing to pay a $500,000 license fee to operate mobile gaming. This aspect of the plan faced immediate pushback from tribal leaders, who argued that Stitt had not consulted them during the drafting process.
Critics of Stitt's proposal pointed out that online bets constitute approximately 95% of the revenue generated from sports betting. They also noted that the existing state-tribal gaming compacts grant tribes the exclusive right to operate gaming within the state. Allowing other vendors to participate in mobile gaming was seen as a significant departure from these agreements, leading to further contention between the governor and tribal leaders.
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Strained Relationships
The relationship between Governor Stitt and the tribal leaders has been strained for some time. This tension dates back to Stitt's incorrect assertion that the existing gaming compacts did not automatically renew, which led to a failed attempt to renegotiate the terms of these agreements. This history of conflict has only added to the challenges faced in reaching a consensus on the sports betting initiative.
Morgan emphasized that the lack of consultation with tribal leaders was a critical misstep in Governor Stitt's approach. The tribes have a significant stake in the state's gaming industry, and their input is crucial for any successful legislation related to gaming. The exclusion of tribal leaders from the drafting process not only undermined the proposal but also exacerbated existing tensions.
Despite the setbacks, the push to legalize sports betting in Oklahoma is likely to continue. The potential revenue from sports betting is substantial, and many believe that a well-structured agreement could benefit both the state and the tribes. However, achieving this will require a more collaborative approach and a willingness to address the political schism that's keeping the initiative from advancing.
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