Regulatory Oversight of Oklahoma Gambling: Role of State Agencies and Tribal Authorities

Currently, 28 US states allow Native Indians to provide real-money casino gaming services. However, Oklahoma leads the market with the highest number of tribal-run casinos.

The relaxed gambling laws and regulations are the reason for the flourishing gambling market in the Sooner State. Let’s look into the legal conditions of Oklahoma’s land and online betting markets.

Oklahoma Gaming Compliance Unit

A tribal gaming compact allows all federally recognized Indian tribes to regulate and run casino venues in Oklahoma. The Gaming Compliance Unit (GCU) oversees the state’s responsibilities under this compact.

As per the State-Tribal Gaming Act, the Oklahoma government has limited regulatory authority over casino enterprises on Indian reservation lands. That said, native tribes manage employee licensing requirements, accounting and auditing standards, property claim policies, liability insurance, and several other provisions. The tribal community even provides vendor licenses.

However, this legislation doesn’t impact the role of the National Indian Gaming Commission (NIGC).

Tribal Gaming Landscape Across Oklahoma

Unlike other US states, Oklahoma allowed tribes to operate casinos only a decade ago.

In November 2004, the People of the State of Oklahoma voted for “The State-Tribal Gaming Act.” Nevertheless, it’s better to be late than never. Today, the Oklahoma tribes have more casinos than any other state.

Under this law, Oklahoma’s governors also signed the Model Tribal Gaming Compact with the state’s native Indian tribes. This compact allows OK tribal communities to provide various casino games, such as electronic bonanza-style bingo, instant bingo, electronic amusement games, and certain types of blackjack.

Local tribes upgraded Class II games to Class III casino-style gambling with the passage of state Question 712. The Indian casinos can equip their facilities with as many gaming machines as they want.

Further, Governor Fallin signed the HB3375 bill into law in April 2018, which legalized roulette, craps, and pooled sports gambling at tribal casinos.

Who Controls Tribal Gambling Activities?

The Indian Gaming Regulatory Act (IGRA) 1988 defines tribal gaming operations throughout American states, including Oklahoma. This regulatory body creates a framework of regulations for native Indian casinos. Although tribes have sovereignty, the Oklahoma state government plays a crucial role in deciding which games tribes can host in their casino facilities.

A Tribal Casino Association and an independent testing laboratory regularly test the casino gaming machines. These audits ensure a fair gambling experience for every player. Further, the NIGC oversees that tribes adhere to the regulations set by the IGRA.

Oklahoma-based native tribes primarily regulate both Class II and Class III casino games under the compact. The games are subject to the provisions of the IGRA, while NIGC supervises these activities.

Top Land-based Casino Facilities Run by Native Indians

Currently, 35 native Indian tribes operate casino clubs under Oklahoma’s gaming compacts. These include the Seminole Nation, Chickasaw Nation, Choctaw Nation, Iowa Tribe of Oklahoma, Cherokee Nation of Oklahoma, and many more.

Here’s the list of popular tribal-owned casino venues in Oklahoma:

• Cherokee Casino Grove
• Cherokee Casino Ramona
• Hard Rock Casino Tulsa
• WinStar World Casino
• Lucky Star Casino Clinton
• Choctaw Casino Stringtown
• Artesian Hotel, Casino, Spa
• Riverwind Casino
• West Bay Casino & Resort
• Saltcreek Casino
• Bordertown Casino & Arena
• Ioway Casino
• Kiowa Casino & Hotel
• Creek Nation Casino Duck Creek
• Seminole Nation Casino
• River Spirit Casino
• Downstream Casino
• 7 Clans Paradise Casino
• High Winds Casino
• Sugar Creek Casino

Other Betting Segments Legal in The Sooner State

Official State Lottery

In 2003, the HB1278 bill permitted lottery games in Oklahoma after voter approval. With this, the state got the Oklahoma Education Lottery on 2 November 2004. This state-run lottery contributes lottery proceeds for educational campaigns.

Further, the state lottery department introduced the first instant scratch games in October 2005. Soon, residents also got access to several other legal lotto games, including Pick 3, Powerball, Mega Millions, Hot Lotto, Lottery Pick 4, and Lottery Cash 5.

Today, the state also has an official lottery site that provides rewards and promotions to regular players.

Poker Rooms and Game Varieties

Many Oklahoma-based native Indian casinos also run poker rooms. These gaming facilities host various poker tournaments year-round.

Residents can enjoy the famous poker game versions in these poker halls, such as Hold’em, Omaha, No-limit Hold’em, Three-card Poker, Seven-Card Stud, and many more.

Tribal Casino Revenue Share

The tribal-state compact requires casino operators to share a percentage of revenue with the state. Section 3A-280 of the Oklahoma Code requires the state to contribute 88% of tribal gaming revenue to the Education Reform Revolving Fund. Further, 12% of profits go to the General Revenue Fund.

Based on The National Indian Gaming Commission report, 244 tribal nations generated $40.9 billion in revenue in 2022 through tribe-owned gaming enterprises.

Gaming revenue is the economic driver for many native Indian communities. The tribes use the funds for education, transportation, and housing purposes. According to federal law, Oklahoma native tribes shared $2.4 billion of gaming profits.

According to IGRA rules, the state government and Oklahoma’s Native American tribes can use casino profits for five major purposes.

The tribal revenue facilitates the general welfare of tribal members, tribal economic development, charitable fundraisers, tribal operations, and state government agencies. The goal is to benefit and support tribal communities.

Oklahoma’s Charitable Gaming Statutes

In 1992, the state government passed The Oklahoma Charity Games Act. Under this statute, only non-profit organizations can host charity game sessions.

The qualified organizations include churches, schools, parent-teacher organizations, and student groups. These non-profits must be operational for at least two years. However, only licensed NGOs can organize charitable bingo, raffles, and pull-tab gaming events. This license is available for a $100 annual fee.

As per law, the maximum prize value for a bingo event is $6,000 in cash or merchandise.

Online Gambling – Legal or Not?

Currently, Oklahoma has no state-approved igaming laws. However, the OK gambling statutes don’t specifically mention overseas-based online casinos. The undefined laws keep online gambling in the grey area within this state.

This vagueness gives Oklahomans a leeway to play casino games via offshore sites. The internationally licensed and regulated virtual casino operators comply with betting laws outside the US border. As these OK online casinos accept payments via cryptocurrency, Oklahoma gamblers won’t face any trouble during deposit and withdrawal.

Some reliable offshore casino sites for Oklahoma residents are DuckyLuck, Bovada, Wild Casino, and Super Slots. After registering at these online casinos, players can gamble on an array of games from the comfort of their couches.

Unregulated Sports Betting Market

Several attempts in the House to legalize the Oklahoma sports betting industry have been futile lately. Even last year, Rep. Ken Luttrell’s HB 1027 bill failed to pass in the Senate. According to industry insights, there is a big gap between the native tribes and Gov. Kevin Stitt.

However, residents don’t need to lose hope. The OK authorities introduced more sports wagering bills during this 2024 legislative session. If approved, Oklahoma will also launch its e-sportsbook platforms and apps.

Hence, no legal, state-run source of online or land-based sportsbooks is available in the Sooner State. Till then, offshore sportsbook sites are the only option for locals to punt on sports betting events.

The amendments in Oklahoma’s sports betting landscape depend on the agreement between native tribes and the state government. Presumably, all the operational native Indian casinos can provide sports betting services to residents.

Not to mention, Oklahoma has teams that participate in prominent sports games, such as the Oklahoma Sooners and Oklahoma State Cowboys. Moreover, Okies love sports events, which indicates enormous revenue potential for the state through sports betting.

In a Nutshell

With 143 native Indian casinos, Oklahoma’s gambling market is vibrant. The state laws and tribal compacts redefined the entire market. The huge profit margins also show that the Okies love to gamble.

The plans to qualify online sportsbooks are also on the card. Once legalized, the Sooner State will become a hotbed for online operators.