A ban on sweepstakes casinos will take effect in Oklahoma on November 1, after lawmakers overrode Governor Kevin Stitt‘s veto of the legislation.
Stitt vetoed SB1589 earlier this week, but the Senate voted 34-10 to override the Governor. The House followed suit in a 68-19 vote, leading to the bill being filed with the Secretary of State.
Dual-Currency Gambling to Be Prohibited
After it takes effect in November, operators will be prohibited from using dual-currency systems to offer online casino games to users.
The bill defines online casino games as “any gambling game that allows a person to access the Internet, World Wide Web, or any part thereof by way of a computer, computer system, computer network, computer software, computer terminal, or similar device including, but not limited to, a cellular or mobile telephone, a smart or electronic watch, or a tablet that, upon risking any representative of value, simulates any gambling game.”
It goes on to define “representative of value” as “any and all currency used as part of a dual-currency system of payment that allows a person to exchange such currency for any prize, award, cash, or cash equivalent, or any chance to win any prize, award, cash, or cash equivalent.”
At the moment, almost all major sweepstakes casinos remain active in Oklahoma. If they continue past November, they may face Class C2 felonies, with fines of $500 to $2,000 and potential imprisonment.
Governor Objects to Vague Definitions
Gov. Stitt released a veto message explaining why he chose not to sign off on the legislation.
“Oklahoma’s gaming laws must be clear, targeted, and fair. Senate Bill 1589 does not accomplish that end,” the Gov. wrote on his dedicated veto page.
“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,” Stitt added.
“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.”
Will Louisiana Governor Also Veto Approved Ban?
Louisiana lawmakers also sent a bill that proposes banning dual-currency gambling platforms to the Governor on Thursday.
HB883 has similar text to the bill in Oklahoma. It adds to its definition of illegal gambling to include: “Any game, contest, or promotion that is available on the internet or accessible on a mobile phone, computer terminal, or similar access device that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award, cash, or cash equivalents, or any chance to win any prize or award, cash, or cash equivalents, and simulates any form of gambling constitutes gambling by computer.”
Gov. Jeff Landry vetoed similar legislation last year, citing the enforcement powers state authorities already hold to target illegal gambling. The state subsequently sent cease-and-desist orders to 40 offshore and sweepstakes operators.
Many have complied, and we counted at least 57 platforms that already list Louisiana as a restricted state. Gov. Landry may therefore again veto the bill.
Similar to Gov. Stitt, in his veto message last year, Gov. Landry said “some of the language in this bill is overly broad and could be interpreted in an adverse manner, which may harm or impede our current enforcement actions taken against these bad actors.”
If he does sign off on the ban, Louisiana would become the fifth state to prohibit sweepstakes casinos this year. In addition to Oklahoma, Tennessee, Indiana, and Maine have all passed legislation to ban the platforms.
