The Oklahoma Legislature has passed a bill that would prohibit online casino games, including those utilizing dual-currency systems used by sweepstakes casinos.
The Oklahoma Legislature has approved Senate Bill 1589, a measure that broadens the state’s gambling statute to explicitly cover online casino games and dual-currency payment systems, commonly used by sweepstakes casinos.
The House passed SB 1589 by a 65-21 vote, and the Senate unanimously passed it in early March.
The bill now awaits final enrollment before being sent to the governor.
SB 1589 Targets Dual-Currency Models and Online Casino Games
The legislation amends Oklahoma’s existing gambling law to include online casino-style games.
It defines “online casino games” as any internet gambling that allows users to risk something of value on games via computers, mobile phones, or tablets, including slots, lottery-style products, and bingo.
Crucially, the bill defines “representative of value” to include:
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.”
This language specifically targets sweepstakes casinos that use dual-currency payment systems. Users usually purchase one currency to play for fun and receive another currency as a gift, which they can redeem for prizes or cash equivalents.
SB 1589 expands liability beyond operators to include any “geolocation provider, gaming supplier, platform provider, promoter, or media affiliate” who “deals or provides support.” Such parties would face a Class C2 felony, with fines of $500 to $2,000 and potential imprisonment.
If enacted, the measure would take effect on November 1, 2026.
Fourth State to Advance Sweeps Ban in 2026
If enacted, Oklahoma would become the fourth state in 2026 to pass legislation effectively banning sweepstakes casinos.
Indiana and Maine have already enacted bans, both of which take effect in July. Meanwhile, the Tennessee Legislature passed SB 2136, though the governor has not yet signed it.
While the statutory language varies, each measure targets dual-currency systems that allow players to earn virtual currency redeemable for cash or cash-equivalent prizes.
In addition to the four states, the Iowa Legislature passed an enforcement-focused bill that, while not explicitly banning sweepstakes platforms, strengthens regulators’ ability to act against unlicensed operators, including those using similar models.
Momentum Builds Across Multiple States
In addition to the states where lawmakers have passed legislation targeting sweepstakes casinos, several others are considering similar measures.
In Louisiana, policymakers have taken a dual approach. The Legislature already passed a bill that expands Louisiana’s racketeering predicate list to include “Gambling by electronic sweepstakes device.” Additionally, a bill that directly targets the dual-currency payment system awaits a final vote in the Senate after passing in the House.
In Minnesota, a similar measure passed in the Senate last week and now awaits a committee hearing.
Additionally, Washington, D.C. lawmakers are discussing a bill to legalize online casinos, which includes a provision to ban sweepstakes casinos.
What’s Next in Oklahoma
SB 1589 is in the formal enrollment stage. After chamber leaders sign it off, it will be sent to the governor’s desk.
Once it reaches his desk, Gov. Kevin Stitt has five days (excluding Sunday) to sign, veto, or take no action on the bill. If he chooses not to act, it will become law automatically.
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