Oklahoma Legislature Overturns Veto On Sweepstakes Ban

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The Oklahoma legislature overturned Gov. Kevin Stitt‘s veto of a bill that bans sweepstakes casinos on the second to last day of session.

SB 1589 had been vetoed by Stitt last week over the law not being “clear, targeted and fair.” Both chambers had to repass the bill by a two-thirds majority, which the Senate did by a 34-10 vote followed by a 68-19 vote in the House on Thursday.

Sweepstakes operators have 5.5 months to exit as the bill becomes law on Nov. 1.

Stitt confused about sweepstakes?

Stitt wrote a short veto memo saying the ban discouraged innovation and investment in Oklahoma:

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.

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.

Stitt may be confused over what SB 1589 actually bans considering him calling out “everyday apps people use for fun.” While people do play at sweepstakes casinos recreationally and without paying, nearly every legislature considering a sweepstakes ban has shown concern over potentially banning popular games such as Candy Crush.

SB 1589 very specifically targets games with dual-currency systems and defines “representative of value” as gambling with such currency.

Suppliers implicated under bill, too

As Stitt stated, SB 1589 also holds suppliers accountable under the ban.

That means offering geolocation or payment services to a sweepstakes operator after Nov. 1 would lead to the same felony charges as those operating the site would face.

Oklahoma joins a growing list

Oklahoma is the third state to sign a sweepstakes ban into law this year, joining Indiana and Maine to ban the games that offer the online casino experience without the licenses and regulations traditional gambling companies must bear.

That builds off the list of six states that formally banned the games last year:

  • California
  • Connecticut
  • Montana
  • New Jersey
  • Nevada
  • New York

Tennessee also sent legislation banning sweepstakes casinos to Gov. Bill Lee‘s desk. He has until May 22 to sign before it becomes law without his signature.

Louisiana‘s legislature passed a bill that would charge those operating sweepstakes casinos and bribing athletes with racketeering. Gov. Jeff Landry has to take action by Saturday, otherwise it becomes law without his signature.

Photo by Shutterstock/Sue Smith