Oklahoma Congress Overrides Gov.’s Anti-Sweepstakes Casino Veto

The Oklahoma Congress overrode the Governor’s veto to stop an online sweepstakes casino bill from going into effect.

Oklahoma Gov. Kevin Stitt (R) used his veto power earlier this week to block Senate Bill 1589, which aimed to prohibit sweepstakes casino platforms from servicing in-state customers. That came despite strong internal support from legislators, including a unanimous vote in the Senate.

Officials voted to override Stitt’s decision on Thursday, securing the necessary two-thirds support in both chambers with a 34-10 vote in the Senate and another 68-19 count in the House.

Oklahoma says no to anti-sweepstakes veto

Gov. Stitt’s rejection of SB 1589 was largely unexpected. Stitt, a Republican in charge of a largely conservative state, is known for having many traditional beliefs. Conservatives, especially those further south, are frequently critics of gambling and related industries.

His veto was not out of personal support for online sweepstakes casinos, but rather, his belief that the bill’s ambiguous language could have created problems that involved serious repercussions.

Specifically, Stitt took issue with defining gambling games as those “representative of value.” He argued that the term did not properly define the platforms the government intended to target, and that under that definition, a legal online retailer could be hit with felony charges for allowing a customer to spin a wheel to possibly earn a discount for their purchase.

“[The bill was] so broad that it criminalizes everyday apps people use for fun,” Gov. Stitt wrote. “It also unnecessarily creates a new felony and extends criminal liability to businesses and service providers. Oklahoma can protect consumers without adopting criminal penalties that reach beyond the problem they are intended to solve.” 

The Governor’s verdict ultimately swayed a few officials in the Senate, which gained 10 new “No” votes after the veto. However, he lost two “No” votes in the House, and the bill was pushed into law. 

With the framework now in place, anyone who is found guilty of conducting or facilitating online sweepstakes casino business may be punished with Class 2 felony charges.

Sweepstakes casinos dealt another loss

Oklahoma’s new gaming regulations place a total prohibition on online casino games played on computers, phones, tablets, smart watches, and all other mediums with which users can connect to the internet.

Sweepstakes gaming platforms have argued that they are distinctly different from online casinos because of the way in which they operate. While they offer common iGaming attractions, such as slot machines, they allow but do not require customers to make real-money purchases to use their platforms.

This dual-currency approach is part of what the Social Gaming Leadership Alliance (SGLA) has pushed to state officials, many of whom already banned or pursued legal action against sweepstakes companies. The SGLA’s efforts have largely been in vain.

With the bill now past the Governor’s desk, anyone who is found guilty of helping conduct online sweepstakes business in Oklahoma is punishable with fines of $500-2,000 and up to 30 days in jail. 

The only gaming methods that are authorized are those facilitated by the tribes in accordance with the Indiana Gaming Regulatory Act.