Oklahoma Tribes Look Outside Sports Betting For Revenue

It’s football season again! In Oklahoma; that means Boomer Sooner. It’s a big year for the Sooners too as they leap into the vaunted SEC conference.

Excitement is up and boy, wouldn’t it be great to be able to bet on Oklahoma football? It would be if not the state’s complete ban on sports wagering. It’s one of 12 states without legalized sports betting of any kind. None! And the way the tribes are acting, we might be years away from that changing.

Tribes Conflict With Governor Still Fresh

Make no mistake about it, the reason there is no legal sports betting in Oklahoma is bedside political animosity — not because of moral stand standing. Both Oklahoma politicians and tribes in the state want this to happen. However, the tension between the two sides is simply too much.

Governor Kevin Stitt is in the eye of the storm. Heck, we’re sure the tribes think he created the storm. You see, this tension has been boiling for a good five years now.

Back in 2019, Stitt attempted to renegotiate the overarching gaming compact that governs Oklahoma. It did not go well, let’s put it that way. After those efforts flopped, Stitt negotiated standalone gaming deals with four tribal nations (there are many more than that). The Oklahoma Supreme Court got involved and ruled the agreements unconstitutional, spurring a legal fight that persists today.

Stitt, ever one to not be denied, doubled down last November. He rolled out an online sports betting plan that included commercial operators — such as Caesars or FanDuel. They’d have the right to offer mobile betting, but the tribes would be limited to in-person sports wagers. Operators would be taxed 20 percent, while tribes only 15 percent.

Of course, the tribes were not happy one bit. They contend their compact gives them the exclusive rights to conduct gaming in the state without outside competition.

“Fundamentally, the tribes have to be at the forefront in making the determination about the scope and breadth and ultimate authority for the operation of sports books in Oklahoma,” said William Norman, an Oklahoma City lawyer who represents tribal governments in gaming matters.

This proposal, which went to anywhere mind you, just fanned the flames. It appears the tribes are waiting for Stitt to exit as governor in two years rather than negotiate with him. That’s why we’re pessimistic about Oklahoma launching sports betting in 2025 or even 2026. There’s just simply too much bad blood.

“Everybody understands that Governor Stitt has a particular view on this subject that is not agreeable with where the tribes are,” said Mathew Morgan, whose group represents 25 of the 33 tribes with casinos. “There may not be a point in moving forward if he continues to have that position.”

Tribe Grows Revenue Without Sports

The tribes, of course, want to offer sports betting and get a fresh dose of revenue from it. However, it doesn’t want to sacrifice its exclusivity for betting in-state. That’s why it’s getting creative when it comes to revenue generation.

For the one, the tribes are rolling out mobile games that don’t need state approval. For example, the Chickasaw Nation has a sports-themed betting app that you can use while hanging out at their Winstar World Casino and Resort — right off Interstate 35 near the Oklahoma-Texas border, heavily frequented by Dallas folks.

“Tribes need to have the opportunity to be equally competitive in that space and to not be left behind with respect to any sort of access to technology,” said Valerie Spicer, who is the chief gaming officer of Vetnos, a game-maker for the tribes.

Even AI is shaking things up. It’s creating efficiencies for the tribes by crunching data and even doing surveillance activities. Cue the science fiction movies.

Moreover, casinos are going beyond just gaming. They’re adding attractions like resort-style pools for families and swapping out buffets for well-known restaurants. All in an effort to “spice things up.”

It appears the efforts are working too. They don’t openly report how much money they make from their casinos — nor do they have to. However, we can guesstimate how much is being accrued.

This is because as part of the compact, the tribes pay the state monthly fees that are based on their gaming revenues. State data shows they received $210.2 million in these exclusivity fees over the last year ending in June. That figure is up 4% from the previous year, and the most or all time.

This situation is interesting — perhaps one of the most interesting betting storylines in the whole country. Neither side appears to be budging and it’s starting to feel like a game of chicken.

Before we let you go, we do want to remind you that offshore sportsbooks work perfectly fine in Oklahoma too. This is your best bet at wagering on the Sooners this season and probably next and maybe the year after that because as we said, our optimism isn’t high this state gets this figured out.

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Eric Uribe

Eric is a man of many passions, but chief among them are sports, business, and creative expressions. He's combined these three to cover the world of betting at MyTopSportsbooks in the only way he can. Eric is a resident expert in the business of betting. That's why you'll see Eric report on legalization efforts, gambling revenues, innovation, and the move...

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