Oklahoma Expands Crackdown on Sweepstakes Gaming

Oklahoma moved to shut down sweepstakes-style casino platforms after legislators voted to override Gov. Kevin Stitt’s veto of Senate Bill 1589, placing new restrictions on dual-currency online gaming systems statewide.

The override passed 34-10 in the Senate and 68-19 in the House during the final days of the 2026 legislative session. The law takes effect Nov. 1.

The legislation targets sweepstakes casino models that combine free virtual currency with purchasable tokens. Enforcement provisions extend beyond operators to affiliates, payment processors, suppliers, geolocation providers, and promoters tied to the platforms.

Violations under SB 1589 carry felony penalties. Reports identified the offense as either a Class C or Class C2 felony, with fines ranging from $500 to $2,000 and possible jail time.

Debate Focused on Bill’s Reach

The proposal received strong support before the veto override. Sen. Todd Gollihare and House Speaker Kyle Hilbert sponsored the measure, which initially passed the Senate unanimously in March.

“These illegal offshore entities and foreign operators cost the state of Oklahoma millions of dollars in lost revenue,” Gollihare said during debate over the bill.

Stitt vetoed the measure on May 7, arguing the wording extended beyond sweepstakes casinos and could affect legitimate businesses.

“Oklahoma’s gaming laws must be clear, targeted, and fair. Senate Bill 1589 does not accomplish that end. This bill is so broad that it criminalizes everyday apps people use for fun. It also unnecessarily creates a new felony and extends criminal liability to businesses and service providers,” Stitt wrote in his veto letter.

“That kind of vague and overbroad approach creates uncertainty for businesses operating in good faith and discourages innovation and investment in our state. Oklahoma can protect consumers without adopting criminal penalties that reach beyond the problem they are intended to solve.”

Some reports questioned whether the governor’s criticism reflected the bill’s language, noting the legislation specifically addresses dual-currency systems tied to “representatives of value” rather than standard free-play gaming apps.

The bill also preserves tribal gaming rights authorized under the Indian Gaming Regulatory Act.

States Increase Pressure on Sweepstakes Gaming

Oklahoma joined a broader effort among states targeting sweepstakes gaming operations that critics argue resemble online casinos without following standard gambling regulations.

Indiana and Maine approved similar bans in 2026. Legislative reports also listed California, Connecticut, Montana, Nevada, New Jersey, and New York among states restricting dual-currency gaming systems.

The law also applies to sweepstakes-style sportsbook products. Oklahoma still does not permit legal online or retail sports betting despite having more than 100 tribal casinos operating statewide.

Previous disputes over sports betting compacts involving the Comanche Nation and Otoe-Missouria Tribe ended with the Oklahoma Supreme Court ruling that Stitt exceeded his authority.

“From the start, this was about separation of powers, and the Supreme Court affirmed as much with a decisive ruling,” former House Speaker Charles McCall said after the court decision. “Oklahoma and its tribal nations can move forward from this together as partners, as we have done for decades with great success.”

Source:

“Oklahoma Enacts Sweepstakes Casino Ban After Veto”, news.worldcasinodirectory.com, May 16, 2026