Oklahoma Gov. Kevin Stitt Keeps Sweepstakes Alive by Vetoing SB 1589
There was a shocking announcement this week as Oklahoma Governor Kevin Stitt vetoed Senate Bill 1589 (SB 1589), stopping what would have been the end of dual-currency online casino- and sportsbook-style games in the state.
SB 1589 passed the Oklahoma Senate unanimously (48-0) in March and later cleared the House on a 65-21 vote in early May, but when it got to Gov. Stitt’s desk, he kept the dream alive for sweepstakes casinos and sportsbooks in the Sooner State. Had the bill been signed or left untouched, it would have taken effect on November 1, 2026.
Gov. Stitt had a clear message that made people around the industry take notice, writing:
“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.”
He added that the state “has no business interjecting itself into private business contracts.”
It’s a monumental piece of news, as Oklahoma was set to become the latest state to get in on the mix of axing sweepstakes casino and sportsbook games. Now, it’s a whole new ballgame, giving life to what seemed like a foregone conclusion that sweepstakes fans would have to find a way to get in on the action elsewhere.
My law expertise begins and ends with Law & Order, but I believe Oklahoma and Gov. Stitt have now set the utmost precedent for future sweepstakes casinos and sportsbooks to operate in even more U.S. states. Before, sweepstakes games were a nice alternative to real-money gambling. Now, they are at the forefront of transforming the gambling landscape.
Last-Minute Veto of Oklahoma’s SB 1589
Gov. Stitt’s veto actually took place on May 7, 2026, but the information wasn’t made public until a week later because of the traditional way vetoes are revealed; governors typically issue their vetoes in batches.
Since this decision was made near the end of a session, it was on the back end of Stitt’s “2026 Vetoed Legislation” page on the governor’s website. It was a very busy session for Oklahoma, with numerous decisions coming down to the wire.
Oklahoma became the latest state to come out swinging with SB 1589, claiming online casino games that included “any internet-based game that simulates slots, table games, or sports betting when players risk “any representative of value” were illegal.
SB 1589 directly targeted dual-currency platforms by treating redeemable virtual currency as a means of doing so. These violations would have become Class C2 felonies, with fines ranging from $500-$2,000 and up to 30 days in jail for each offense.
The sweepstakes format has been a massive void-filler for Oklahomans, but it is seen as direct competition that provides no tax revenue, player protections, or economic benefit to the state.
Along with the support of tribal communities in Oklahoma, SB 1589 was trying to ensure that any future regulated online gambling remained exclusively under tribal control on Indian lands. Many of the provisions in the bill had tribal-friendly clauses, helping the state secure overwhelming support from the state’s legislature.
Related Articles
Other Legal Gambling Alternatives in Oklahoma?
As of May 2026, Oklahoma does not have any licensed online casinos or sportsbooks, and there is no immediate timetable on when that dream will become a reality.
In April, the Oklahoma Senate rejected a sports betting legalization bill that narrowly missed by a 21-27 margin. The proposal would have allowed the tribal casinos to offer in-person/mobile sports betting, with revenue fees and sharing going to the Sooner State.
Even the NBA’s Oklahoma City Thunder were huge supporters of the bill, but the state faced opposition over tribal access disputes, problematic gambling concerns, and various other issues.
Gov. Stitt also wanted the sportsbooks to have more of a wider reach, outside the tribal communities, as this would have granted licensing for the state lottery, horse tracks, and non-gaming entities. FanDuel, which is a big supporter of the bill, estimated the bill could generate anywhere from $75 million to $100 million in revenue for Oklahoma over the next five years.
However, the tribes weren’t too enthralled with having someone else and cut in on their profits. Land-based tribal casinos generated over $3.6 billion in revenue and over $221 million in exclusivity fees in 2025, and that’s no small slice of the pie.
Just as the case is in Oklahoma, other states like Florida and Washington have faced pushback from the tribal groups, leading to a long standoff or the altogether absence of casino and sports betting games in those places.
Why Are So Many U.S. States Cracking Down on Sweepstakes Casinos & Sportsbooks?
There is a legal gray area that allows sweepstakes casinos and sportsbooks to operate similarly to the big boys in the iGaming space. Under the dual-currency system, players can purchase Gold Coins (GC) to play games on and Sweeps Coins (SC) to redeem for cash prizes; this simulates the gambling-like experience without wagering real money to get real money back.
The sweepstakes platform has been quite popular in states without legal sports betting or casino play, as it had been allowed to operate without needing the same regulations.
Well, now the states have caught on to this platform, and they want a piece of the action; that can’t happen, they just want sweepstakes formats go away forever.
In 2025, states like California, Connecticut, Montana, New Jersey, and New York all set the precedent by banning sweepstakes casinos and sportsbooks within their respective state’s borders. Just this year in 2026, Indiana, Maine, and Tennessee all followed suit.
All of the states that broke away from sweepstakes casinos and sportsbooks brought the same list of concerns, which included consumer risks like lengthy wait times for rewards redemptions, account closures when it was time for a payout, and limited recourse. There have been many other concerns like the lack of a central regulatory body, making the whole operation ripe for the picking on money laundering or fraud.
Getting away from the sweepstakes model is also a sign for some states that they are moving towards fully regulated (and legal) iGaming platforms. If the state is worried about what the sweep platforms are doing, their focus will be diverted from the operation that is actually bringing in legal money.
The Road Ahead for Sweepstakes Games, Oklahoma
Oklahoma’s legislative session ends on May 29, so lawmakers have time to try a veto override; this requires a two-thirds majority in both chambers. Considering there was a ton of support for SB 1589, it’s not a guarantee to work, especially if some lawmakers have a change of heart after hearing Gov. Stitt’s reasoning.
In the long run, this veto could create guidelines for the sweepstakes industry that have long been wanted. Gov. Stitt has mentioned being open to legalization if the right deal is in place, and this could be a reminder to everyone that Oklahomans really want some type of platform to play on.
Many critics of Gov. Stitt’s veto said this is a huge mistake, but I actually agree with the ruling in some aspects. There are plenty of credible operators in the industry, and they deserve a shot to prove themselves.
However, there have been numerous payout horror stories, and it seems like everyone just wants to feel safe about what’s happening. Oversight in sweepstakes games is an absolute must, and the opportunity to be transformative is right here at the doorstep.
The sweepstakes model still has around 30 U.S. states under legal occupation, but the number is declining, especially in states like Illinois, Minnesota, and maybe even Virginia, which could be next on the chopping block. Not to mention, other states allow people to play the games, but they don’t allow people to make real cash redemptions. What are people supposed to do, play for fun? That’s no fun.
The sweepstakes platforms generated millions as an industry at their peak, so the interest is certainly there among players in every state. These states want a piece of the pie, and they are hungry enough to eat the whole thing.
Read More
