It is starting to sound like the state Senate wants to seize control of negotiations over the future of Oklahoma sports betting.
Such a move would be both unconventional and, it seems, necessary. The legalization of sport betting in Oklahoma has so far hinged on the state’s tribes and Governor Kevin Stitt hashing out their differences. While this sounds easy, if at least possible, we’re talking about a relationship that has been on the downward swing for years.
Tribes have been turned off by Stitt’s attempts to renegotiate the exclusivity awarded to them in their gaming compacts. Recently, tribes made it clear they would speak with Governor Stitt, but it isn’t clear whether the two sides have made any meaningful headway. Heck, it’s not even guaranteed that they’ve talked at all.
It is this enduring deadlock that has the Oklahoma State Senate considering more drastic measures. We will outline why below.
At Least One Senator Believes Oklahoma Sports Betting will Make it All the Way Through the State Legislature 2024
When the next round of Oklahoma sports betting discussions take place, State Senator Bill Coleman believes it will have the official support necessary to survive both the House of Representatives and Senate. Granted, his sentiments have been met with some push-back.
Last year’s Oklahoma sports betting initiative made it through the House. But it fell flat in the Senate. What evidence is there to suggest that won’t happen again? Well, according to Senator Coleman, the measure only failed because of the disagreement between Stitt and the state’s tribes. From KOCO-TV in Oklahoma’s Andy Weber:
“‘It did make it through the process in the House, whereas the previous did not,’ Coleman said. ‘It did move a little bit farther this year, making it through the House, and it came over to the Senate, assigned it to a committee and that’s kind of where it stayed.’ Coleman said he now believes he can get it out of committee, but he said that could be contingent on whether the governor and the largest tribes are able to improve their relationship. ‘The governor and the tribes need to have a serious conversation about sports betting in Oklahoma. They don’t have to bring up anything else,’ Coleman said.”
This looms as a pretty big development. Usually, when stakeholders sense that both the House and Senate are on board with legalized sports gambling, compromise starts to ensure.
But is that trend destined to continue in Oklahoma?
State Senate Leaders Have Said They Will Take Matters into Their Own Hands If Need Be
It turns out the answer to the aforementioned question may not matter. Better relations between the governor’s office and Oklahomoa’s largest tribes would certainly fast track sports betting. But it may not be entirely necessary. The Senate is reportedly ready to explore alternative measures if Governor Stitt and the tribes don’t find common ground.
As Weber wrote: “If the tribes and Gov. Kevin Stitt fail to come to the table over compacts, state Senate leaders said they are ready to take negotiating powers back and enter into their own agreements.”
Immediately, it isn’t clear what this would entail. The best guess? Members from the state legislature would be negotiating amendments to Oklahoma sports gambling compacts with the tribes directly. That power currently lies with the governor’s office—which is part of the problem. Tribes have been frustrated not just by previous discussions. They feel like Governor Stitt has reached unfair agreements with a select few tribes.
Would the State Senate Have a Better Chance of Brokering an Oklahoma Sports Betting Agreement with Tribes?
To be blunt, it would be difficult for the Senate to do any worse than the current state of talks. Chances are they will have smoother negotiations.
At the same time, another one of the primary issues isn't going anywhere. Pretty much each piece of Oklahoma sports betting legislation has sought to allow online sportsbooks in the United States entry into the market. That could be a deal-breaker for tribes.
It isn’t just about their existing gaming exclusivity. Sure, that’s part of it. But they no doubt understand the legalization of Oklahoma online sports betting could bump up their own bottom line. However, competing with entrenched online operators also seriously jeopardizes their sports betting market share.
Companies such as FanDuel, DraftKings, BetMGM, etc. have a much wider, more established reach. Tribes would need to get certain assurances and incentives if they’re going to branch out from on-site sports betting only. What that entails remains to be seen. It could be a limited number of Oklahoma online sports betting licenses. It could be language that mandates online operators partner with one of the state’s tribal casinos. It could even be a full-on concession by the House and Senate.
If the alternative is no sports betting, would the state look to pursue retail-only options? It’s much too early to tell. But state Senate leaders have repeatedly emphasized how much revenue Oklahoma is losing to sports betting in the neighboring Kansas. If nothing else, then, one thing’s clear: Oklahoma Senate leaders are no longer prepared to wait on Governor Stitt. They will, it seems, look to push the Oklahoma sports betting agenda in 2024 no matter what.
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