Oklahoma Passes Bill to Ban Sweepstakes Casinos
The Oklahoma Legislature recently passed a bill that aims to ban free-to-play sweepstakes casinos in the Sooner State.
The move to ban sweepstakes casinos has one more step
After passing in the Oklahoma Legislature, bill SB 1589 goes to Gov. Kevin Stitt. He now has three options: veto the bill, sign off on it, or take no action. If he signs off on it or takes no action, the bill becomes a law and will take effect on Nov. 1.
The bill's language specifically targets the dual-currency system in place at nearly all sweepstakes casinos. It looks to ban “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.”
Plenty of support for outright ban
The bill passed by a margin of more than 3-to-1 (65-21) and was previously approved by the Oklahoma Senate in March.
SB 1589 also does not specifically target operators, but also any “geolocation provider, gaming supplier, platform provider, promoter, or media affiliate.” If a party were found guilty of breaking the law, it would be a Class 2 felony with fines and potential prison time.
Sooner State close to becoming No. 4
If the bill becomes a law, Oklahoma would become the fourth state in 2026 to ban sweepstakes casinos. Indiana and Maine already have bans in place, and, like Oklahoma, the bill to ban them in Tennessee is on the governor’s desk.
While the bills in the four states use different language, the main theme targets platforms that use dual currencies. One can usually be redeemed for real money and prizes, including gift cards.
Other states that may follow suit
Oklahoma isn't the only state with its sights set on banning sweepstakes casinos this year. Here are a few more states that may follow suit:
Iowa
A bill passed in the Iowa Legislature did not specifically ban online casinos but focused on regulatory enforcement. It gave gaming regulators in the state enhanced power to act against unlicensed operators. Sweeps casinos are not licensed because they operate under the sweepstakes model.
Louisiana
Louisiana has two bills targeting weepstakes casinos. One deals with racketeering, and the bill states that “Gambling by electronic sweepstakes device” falls under that. The other bill, which has passed in the House but has not been voted on in the Senate, targets the sweepstakes model of dual currencies.
Minnesota
A bill in Minnesota targeting the dual-currency system was recently passed by the state senate and, before going to the governor, will be referred to a committee for a hearing.
Washington, D.C.
A bill was recently proposed in Washington, D.C. to legalize online casino gambling, and included a provision to ban sweepstakes casinos outright.
Regulation over banishment
Unlike the other states that aim to fully ban sweepstakes casinos, Ohio has taken a different approach with another controversial topic: prediction market platforms.
A bill in the Buckeye State would see the state take over federal regulation of prediction markets rather than aiming to ban them.
