Oklahoma Enacts Sweepstakes Gaming Ban Following Veto Override

(AsiaGameHub) –   Oklahoma has classified online sweepstakes casinos and social sportsbook products as illegal under the state’s gambling laws after lawmakers successfully overrode Gov. Kevin Stitt’s veto and enacted Senate Bill 1589.

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Key Facts

• The Oklahoma Senate voted 34 to 10 in favor of overriding the governor’s veto.
• The House of Representatives approved the override with a vote of 68 to 19.
• Operators, suppliers, geolocation firms, promoters, and affiliates may face felony charges under the new law.

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The legislation strengthens Oklahoma’s stance against dual-currency gaming by prohibiting mobile platforms that resemble slot machines, lottery games, bingo, or other forms of gambling when players can use both free tokens and real money coins.

Governor Stitt had opposed SB 1589 due to its inclusion of criminal penalties. Although the bill had already passed earlier in the legislative session, lawmakers reconvened on Thursday and met the two-thirds majority requirement needed to override his veto, after which it was submitted to the Secretary of State.

Social Sportsbooks Lose Another State Route

The ban extends beyond traditional sweepstakes casino games to include sweepstakes-based sportsbooks—apps that mimic the appearance and functionality of established platforms like FanDuel or DraftKings but operate under an alternative monetization model.

This development is particularly significant in Oklahoma, where legal sports betting remains unavailable. A tribal-backed proposal for sports wagering failed to pass the Senate in April, and another legislative effort in the House also did not advance. As a result, Oklahoma joins 10 other states without any form of legalized sports betting.

In contrast, land-based gambling is widely permitted across the state, with more than 100 casinos operating primarily through federally recognized tribal agreements. Tribal gaming leaders supported the sweepstakes prohibition because current compacts ensure that authorized gambling activities remain under tribal jurisdiction.

Under SB 1589, companies involved in prohibited sweepstakes operations could be charged with a Class C2 felony, carrying potential fines ranging from $500 to $2,000 and up to 30 days in jail. The law applies broadly across the entire business ecosystem, not just to direct operators of casino or sportsbook apps.

The enactment of SB 1589 was part of a broader legislative showdown at the state Capitol. In addition to this bill, Stitt vetoed over 30 pieces of legislation, including HB 4432, which would have allowed certain gambling losses to be deductible for tax purposes. Lawmakers also overturned that veto.