Oklahoma is moving closer to eliminating online sweepstakes casinos after lawmakers approved Senate Bill 1589, a measure designed to redefine illegal gambling and reinforce protections for the state’s regulated tribal gaming market against offshore and dual-currency operators. The bill was primarily pushed by Republican lawmakers led by Senator Todd Gollihare, the main sponsor of Senate Bill 1589. The initiative was also backed by Republican House Speaker Kyle Hilbert and Representative Scott Fetgatter, both strong supporters of Oklahoma’s tribal gaming framework and regulated gambling market.
The bill passed the Senate on March 2, 2026, by a 48-0 vote and cleared the House on May 4 with a 65-21 result before being sent on May 5 to Governor Kevin Stitt, who now holds the final decision on one of the broadest anti-sweepstakes measures currently advancing in the United States.
Senator Todd Gollihare
The legislation amends Title 21, Section 941 of Oklahoma law by expanding the definition of illegal gambling to include online casino-style games accessible through smartphones, computers, tablets, smartwatches and similar digital devices when virtual coins or credits can ultimately be redeemed for cash, prizes or equivalents of monetary value. The reform directly targets the dual-currency model widely used by sweepstakes and social casino operators, where users purchase or receive virtual currency that later becomes exchangeable for rewards or cash payouts.
Representative Scott Fetgatter
The bill also broadens potential liability to include platform providers, geolocation providers, affiliates, gaming suppliers and promotional partners connected to unauthorized gambling operations. Penalties would include fines ranging from US$500 to US$2,000 alongside criminal exposure under Class C2 felony provisions. If enacted, the law would take effect on November 1, 2026. Legal tribal gaming operations remain protected through exemptions tied to the Indian Gaming Regulatory Act — IGRA and the Oklahoma Charity Games Act, preserving the state’s tribal compact structure.
Oversight of Oklahoma’s tribal gaming system remains under the Gaming Compliance Unit of Oklahoma within the Oklahoma Office of Management and Enterprise Services. Tribal gaming generated more than US$221 million in exclusivity fees during fiscal year 2025 on gaming revenues exceeding US$3.64 billion, with funds supporting public education, general state revenue and mental health programs.
