Oklahoma Lawmaker Introduces First Sports Betting Bill of 2025

The Sooner State is about to make another attempt at legalizing sports betting.

Oklahoma State Senator Dave Rader has introduced Senate Bill 125 to kick off the 2025 legislative session. The bill would legalize sports betting in the state but requires the support of at least four federally recognized tribes. 

The bill would create a sports betting market that follows the lead of Illinois. Like in the Land of Lincoln, Oklahoma would implement a tiered tax system for operators. That means a sportsbook's net revenue would set the tax rate.

The vast majority of tax revenue generated by the state’s sports betting industry would go to the education system. 

While money for schools is a big selling point for supporters of SB 125, there is concern over the small amount set aside for problem gambling programs. A spike in gambling addiction across the country has lawmakers scrambling to find solutions. Legalizing sports betting without a significant investment in these programs will be a hard sell.

Supporters of SB 125 don’t expect the bill to become law, but they hope it will start a healthier and more productive conversation between the state government and local tribes.

Tribes Signal Willingness to Negotiate

Past attempts to legalize sports betting in Oklahoma have been opposed by many, but the tribes have presented the most significant roadblock.

Tensions between the tribes and lawmakers have been high, and many blame Governor Kevin Stitt. Members of Stitt’s Republican party have become critical of his ability to negotiate with the tribes, which has cost the state millions in potential tax revenue.

The bad news is that the current bill requires at least four tribes to sign off. The good news is that several tribes have already signaled a willingness to discuss the bill. While that is far from a guarantee of support, their openness to the idea is a very good sign.