Governor announces a plan for sports betting in Oklahoma, but many hurdles lie ahead

According to Stitt's plan announced late Thursday, he wants the state to license mobile sports betting operations, which would in return pay a 20% tax on revenues. He also said he would support tribal casinos adding sports betting in exchange for 15%.

"Thirty-five states have already legalized sports betting, and it’ll be a great revenue stream for the state," Stitt said in a written statement.

The proposal was met with surprise and questions from lawmakers and lawyers. State law currently prohibits sports betting. Tribal governments also have exclusive rights to conduct gaming in the state without outside competition.

"I think he’s a little out of his wheelhouse on what he thinks he can do, (with) granting the mobile portion to an outside vendor," said Rep. Ken Luttrell, R-Ponca City, who has led legislative efforts to legalize sports betting in the state. He said he wasn't consulted ahead of Stitt's announcement.

Sports betting is expensive to roll out and operates with small profit margins, meaning it may not pencil out for all tribal governments. Allowing outside vendors to offer mobile gaming would make it even more difficult for tribes to absorb the cost, Luttrell said.

"It’s asking a lot, I think, to ask the tribes to be out money for brick and mortar and lose money on mobile sports betting," he said.

William Norman, an Oklahoma City lawyer who represents tribal governments in gaming matters, said the governor's announcement appears to be a tactical move. "It's an effort certainly to move forward his involvement and his engagement in this particular topic, and also a desire to maybe press the tribes to come forward with their views," Norman said.

He said tribal leaders will need to spend time considering Stitt's proposal and how best to respond.

"Fundamentally, the tribes have to be at the forefront in making the determination about the scope and breadth and ultimate authority for the operation of sports books in Oklahoma," Norman said.

Matthew Morgan, who chairs the Oklahoma Indian Gaming Association, could not immediately be reached.

Stitt's announcement lands days before the Legislature is set to meet next week to study all of the state's compacts with tribes. As part of that, lawmakers are planning to discuss who has the authority to negotiate the agreements, which has been a point of contention between Stitt and legislative leaders.

Luttrell said he did see one positive in the governor's proposal: "Maybe it gives us a negotiating point to start from do some negotiations," he said.