Oklahoma lawmakers voted to enact a statewide ban on sweepstakes-style casino gaming after overriding Gov. Kevin Stitt’s vetoof Senate Bill 1589 during the closing days of the 2026 legislative session.
The Senate approved the override 34-10, while the House voted 68-19, clearing the required two-thirds threshold in both chambers. The legislation targets online casino-style platforms that use dual-currency systems involving free and purchasable virtual tokens.
Operators, suppliers, affiliates, payment processors, geolocation providers, and promoters tied to sweepstakes casinos could face criminal penalties under the measure. Reports described violations as either a Class C or Class C2 felony. Penalties include fines between $500 and $2,000 and possible jail time.
The law takes effect Nov. 1, giving operators several months to leave Oklahoma or modify their products.
Lawmakers Override Stitt’s Veto
Sen. Todd Gollihare and House Speaker Kyle Hilbert sponsored the bill, which passed unanimously in the Senate earlier this year before advancing through the House in May.
“These illegal offshore entities and foreign operators cost the state of Oklahoma millions of dollars in lost revenue,” Gollihare said during Senate debate.
Stitt vetoed the proposal on May 7, arguing the language was too broad and could affect legal businesses and entertainment apps.
“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 noted the bill specifically addresses dual-currency systems tied to “representatives of value,” rather than traditional free-to-play mobile games.
The legislation also exempts tribal gaming conducted under the Indian Gaming Regulatory Act.
States Expand Sweepstakes Restrictions
Oklahoma joins several states taking action against sweepstakes gaming platforms that critics argue imitate online casinos while avoiding standard gambling regulations.
Indiana and Maine passed similar bans in 2026, while states including California, Connecticut, Montana, Nevada, New Jersey, and New York already restrict dual-currency gaming systems.
The Oklahoma law also blocks sweepstakes-style sportsbooks. The state still does not allow legal online or retail sports betting despite operating more than 100 tribal casinos.
The veto override continues a broader conflict over gambling policy involving Stitt, lawmakers, and tribal gaming groups. Earlier efforts to legalize sports betting failed during the 2026 session after Senate lawmakers rejected proposed legislation and another House measure stalled.
“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 following an earlier court decision involving sports betting compacts. “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
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