State Rep. Ken Luttrell, R-Ponca City, is trying to revive the possibility of sports gambling at Oklahoma’s tribal casinos.
On Monday, Luttrell filed House Bill 3008, which would add pooled sports gambling to the list of activities allowed under existing gaming compacts between the state and the tribes. The bill provides the state would receive a 10% cut of net winnings — bets received minus prizes paid out and federal taxes.
“I have had conversations with our gaming tribes during the interim to gauge their interest on this topic,” Luttrell said in a news release. “I feel the time is right for Oklahoma to partner with the tribes and ensure a level, competitive gaming playing field with the surrounding states.”
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It was not immediately clear who supports the legislation or whether it would have a chance of being supported by Gov. Kevin Stitt, who has shown little interest in negotiating with the tribes on gaming or much else recently.
The U.S. Supreme Court opened the door to legal sports betting nearly four years ago when it struck down a federal ban on sports betting — excluding horse racing — in most states. Initial expectations were that Oklahoma and the tribes would quickly reach an agreement to add such betting to the agreement that permits forms of casino gambling in the state.
The election of Stitt brought those discussions to a halt, however, with Stitt unsuccessfully attempting to have the compacts declared no longer valid. Gaming negotiations have been virtually non-existent since, and were pushed further to the side following the Supreme Court’s 2021 McGirt ruling, which further solidified the tribes’ sovereignty claims and displeased Stitt.
A Cherokee citizen with a background in consulting and lobbying on tribal matters, Luttrell said Oklahoma is missing a chance to benefit from revenue that would otherwise go to other states or to illegal gambling enterprises.
“Illegal sports betting occurs throughout Oklahoma, and figures I obtained from the Oklahoma State Bureau of Investigation show 11 offenses recently with tens of thousands of dollars seized,” Luttrell said. “This reflects only a fraction of what actually occurs in our state. The Oxford Economics Group estimates that legal sports betting would generate $240 million in revenue for Oklahoma and create over 3,000 direct and indirect jobs.”
Oxford Economics is a British-based global consulting firm.
At least 29 states and the District of Columbia have legalized sports betting in some form since the Supreme Court’s decision, with several others set to do so in the coming months, according to CBSSports.com.
Tribal gaming 101: What you need to know about Oklahoma tribal gaming
What is the dispute?
In an opinion piece, Stitt said “most” tribal compacts nationwide include gaming exclusivity fees that pay states 20% to 25%, compared to the 4% to 6% that Oklahoma gets from its compacts which were agreed upon more than a decade ago.
What is a compact?
A state lacks jurisdiction over tribes. A compact is essentially an agreement between the state and a tribe where the state offers the tribe substantial exclusivity in certain areas in exchange for payments.
A compact can cover tobacco sales, fuel, gaming and other enterprises. Various entities enforce it. Penalties include a reduction in payments and liquidated damages.
How much does the state receive from tribal gaming compacts?
Since 2004, the state has received slightly more than $1.5 billion, most of which goes to education.
How much did the state receive in 2019?
Oklahoma received a little more than $148 million in tribal gaming exclusivity fees, up almost $10 million from the year before.
Related: A breakdown of the nearly $139 million that Oklahoma collected from state tribes in fiscal year 2018
What types of games are covered by the compact?
The compact covers Class III gaming, which includes slot machines, roulette and craps. The compacts do not cover Class II gaming, which includes electronic bingo. IAN MAULE/Tulsa World file
Can the compacts be expanded for other types of gaming?
Yes. The compacts currently do not cover sports betting and other forms of gambling, such as online betting. Ball-and-dice games were recently approved by lawmakers as a means to raise additional revenue.
How many tribes are involved in the gaming compacts?
Oklahoma has 38 federally-recognized tribes, of which 31 have signed gaming compacts.
How many tribal compact gaming operations exist?
The state has 130 tribal gaming operations that range in size from an annex to a gas station to resort casinos.
How do tribes use the money generated from gaming?
Tribes use the money to fund government operations and programs, the welfare of the tribe and its members, economic development, charity and local government agencies.
