Oklahoma governor opts for status quo with rejection of online sweepstakes casino ban
Oklahoma Gov. Kevin Stitt has rejected Senate Bill 1589, legislation that would have banned sweepstakes-style online gaming platforms. He officially blocked it last week after previously raising concerns about the bill’s broad scope.
The bill passed both chambers of the legislature earlier this year, clearing the Senate in early March and the House in early May, with a proposed effective date of November 1. It had been championed by Sen. Gollihare alongside Reps. Kyle Hilbert and Scott Fetgatter.
SB 1589 sought to bring digital gaming under a tighter legal umbrella by formally defining ‘online casino games’ as any gambling activity conducted through internet-connected devices, including smartphones, tablets, and computers. The legislation specifically targeted simulated versions of poker, slots, roulette, and craps.
Critically, it also took aim at the sweepstakes model itself by classifying dual-currency prize systems as gambling instruments. This same structure has allowed many platforms to operate in a legal gray zone across numerous states.
One of the bill’s more aggressive provisions would have extended felony liability to vendors and service providers working adjacent to these platforms, such as marketing agencies, geolocation companies, and gaming software suppliers.
Concerns had been raised previously about how the bill might affect tribal compacts. Similarly, Senate lawmakers also rejected a sports betting bill last month that would have allowed mobile and retail sports betting on tribal land.
With the veto issued, Oklahoma’s current regulatory posture toward online sweepstakes gaming remains unchanged while the legislature weighs its next move. However, lawmakers can still override the governor’s position, provided they act before May 29.
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