Oklahoma Joins Multi-State Push Against Sweepstakes Gaming

Oklahoma is the latest state seeking to shut down sweepstakes casinos with new legislation that broadens the definition of online gambling and effectively closes the dual-currency loophole.

The bill, officially titled Oklahoma Senate Bill 1589, successfully passed its second reading in the Senate today, a positive step for anti-sweepstakes casino legislation.

SB1589 goes a step beyond similar anti-sweepstakes bills by extending its focus to include third-party technology providers, promoters, and affiliates.

For SB1589 to pass, it would still need to get through committee and a third reading in the Senate. It would then need to repeat that process in the House before receiving the governor’s signature.

Bill Targets Sweepstake’s Dual-Currency System

Sweepstakes casinos operate on a dual-currency model in which one token (usually Gold Coins) is purchasable and has no monetary value. It’s an entertainment product, so it’s not subject to gambling laws. However, sweeps casinos also offer a secondary token (Sweeps Coins, etc.) that is provided for free when purchasing the main currency. The secondary token can be redeemed for cash prizes.

The bill addresses this loophole by amending gambling bills to clarify that sweeps tokens are “representative of value” and a cash equivalent. Therefore, sweeps casinos would constitute gambling.

The amendment accounts for all forms of online casino games, including:

• Slots
• Bingo
• Lottery
• Poker
• Roulette
• Craps
• Any gambling game with cards or dice

Going forward, any owner or operator that violates these laws would be subject to Class C Felony offenses, with fines of $500-$2,000 and jail time.

However, the potential for a Class C Felony extends beyond just the owners and operators. The bill also targets a wide range of associated parties, including geolocation providers, gaming suppliers, platform providers, promoters, dealers, support staff, and media affiliates.

If the bill is signed into law, it would go into effect on Nov. 1, 2026.

Despite having no online poker, sports betting, or online casino, Oklahoma is a giant when it comes to land-based casinos. There are 140 tribal casinos in the state, which is the most in America. That’s at least part of the reason the state has been staunchly opposed to online casino expansion.

Oklahoma Joins Growing List of States Cracking Down on Sweepstakes Casinos

While prediction markets continue to operate relatively unfettered in the US, it appears states are focusing legislative efforts on sweepstakes casinos.

Seven other states, including Indiana, Florida, and Massachusetts, have introduced bills that specifically target sweepstakes casinos.

States have had much more success in wielding their power to ban sweepstakes casinos. California, New York, New Jersey, Connecticut, Montana, and Nevada have all successfully passed legislation banning sweepstakes casinos.

Considering that Washington, Idaho, Louisiana, and Michigan have longstanding laws against sweepstakes gambling, it seems momentum is shifting against the popular social gaming apps.

Here’s a look at all the states that currently have legislation against sweepstakes casinos in the works: