Senate Bill 1589, Oklahoma’s proposal to ban sweepstakes casinos, has now passed both chambers of the legislature and been dispatched to the Governor for approval.
The bill passed the Senate at the start of March, then passed the House on Monday with 65 ayes and 21 nays. Yesterday it was enrolled and sent to Governor Kevin Stitt who has 5 days to sign or veto it – if he does neither, the bill will pass into law.
SB 1589 was introduced to the OK legislature in February by Senator Todd Gollihare (pictured), and it was Oklahoma’s first ever look at banning the sweepstakes casino format.
The State of Gaming in Oklahoma
The Sooner State has traditionally been one of the least restrictive jurisdictions for the sweepstakes format with fewer than 5 notable sweeps sites currently listing it as off limits.
Oklahoma does have a large, regulated gambling market but it’s limited to tribal land-based casinos, the lottery, and horse racing. Anything outside that system, especially online casinos, sits on much shakier legal ground.
SB 1589 looks to amend §21-941 of the Oklahoma Statutes, adding in a definition of ‘online casino games’ that includes games that risk “any representative of value”. Then, later on:
“2. “Representative of value” includes any and all currency used as part of a dual-currency system of payment that allows a person to exchange such currency for any prize, award, cash, or cash equivalent, or any chance to win any prize, award, cash, or cash equivalent.”
This definition would apply to the standard dual-currency sweeps casino set up where players can play with either Gold Coins (GC) or Sweepstakes Coins (SC), the latter redeemable for real cash prizes.
This means that popular sweepstakes brands like Chumba, McLuck, and WOW Vegas would likely be affected by the penalties mentioned in the bill. Namely, being “guilty of a Class C2 felony offense” and subject to fines of up to $2,000, plus the possibility of imprisonment.
SB 1589 Targets Operators Plus Supply Chain
The bill would also capture members of the supply chain (geolocation providers, gaming suppliers, platform providers, promoters, and media affiliates), so many stakeholders in the sweeps space will be watching Oklahoma closely to see whether SB 1589 passes into law over the coming days.
In terms of likelihood, while Governor Stitt has the option to veto the bill, there’s nothing to suggest it’s particularly controversial so it could easily pass. If that happens, OK will join a growing list of states moving to shut down the sweepstakes casino vertical, replacing what has until now been a legal gray area with a clear prohibitive stance.
Author: Alex Windsor
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