Sweepstakes Casinos Begin to Pull Back From Oklahoma

Oklahoma’s ban on sweepstakes casinos isn’t set to take effect until Nov. 1. But multiple social casino operators are already pulling their operations from the Sooner State.

Sweepstakes casino providers Modo and Stake.us have announced a reduction in their operations in Oklahoma, ahead of the November deadline. Modo has told its users that any sweepstakes coins must be played or redeemed by Nov. 1, and has stopped allowing Oklahoma-based users to purchase any new packages that included sweepstakes coins. However, Modo intends to remain available in Oklahoma, offering only Gold Coin play.

Stake.us has chosen an approach that is both more and less extreme. It will allow users in Oklahoma to redeem their sweepstakes coins after its deadline of Oct. 30. However, following that date, it will cut off all play in the state and essentially cease to exist for Oklahoma players.

What Are the Circumstances Regarding Oklahoma’s Ban on Sweepstakes Casinos?

In May, the Oklahoma legislature chose to override Gov. Kevin Stitt’s veto of Senate Bill 1589, which banned dual-currency casinos. In practice, that made sweepstakes casinos illegal, unless they chose to remove sweepstakes coins from their offerings.

For most social casinos, that eliminates much of their appeal. Until recently, sweepstakes casinos got around bans on iGaming by offering a free way to play, meaning users never technically had to spend any money. However, states began cracking down on these social casinos, and Oklahoma became one of the most recent when the state’s tribes protested.

However, Stitt’s relationship — or lack thereof — with Oklahoma’s tribal leaders made the sweepstakes casino ban more complicated than in other states. The ban only got through because Stitt’s relationship with his own party was just as negative. Oklahoma Republicans hold a supermajority in both chambers of the state legislature, allowing them to ignore Stitt and override him regularly.

How Does This Impact the Upcoming Elections?

While the restrictions come into play two days before election day, it probably won’t have much impact on the election. In the state gubernatorial race to replace Stitt, both Democrat Cyndi Munson and Republican Mike Mazzei have emphasized a need for stronger relationships with Oklahoma’s tribes.

Mazzei, Stitt’s former secretary of budget, has been out of politics since 2020 and has no voting record. Munson, the House minority leader, voted for both SB 1589 and House Bill 1047. That bill, sponsored by Sen. Bill Coleman (R-Ponca City), would have brought legal sports betting to Oklahoma through the state’s tribal gaming compacts.

Neither Munson nor Mazzei brought up either iGaming, sweepstakes casinos or sports betting during their recent debate. With both having similar positions on this issue and the Oklahoma legislature likely able to override them anyway, it’s not likely to have any impact on votes.

Interestingly, a recent poll showed that Mazzei has been unable to put the race away. The latest poll showed him ahead by only three points. As Oklahoma has not elected a Democratic governor since Brad Henry in 2006, this would represent a massive political change for the state. The non-partisan Cook Political Report recently moved the race from “Solid Republican” to “Likely Republican”, giving Munson at least a 10% chance for an upset.

What’s Likely To Happen From This?

Most likely, sweepstakes casinos will follow Stake.us’  lead and drop out of Oklahoma altogether. Although a few might follow the path of Modo and allow Gold Coin-only play, it seems more plausible that social casinos will instead stop accepting play from people with an Oklahoma address.

While that’s bad news for sweepstakes casino players, it’s potentially good news for those who want legal betting increased in Oklahoma. With the tribal leaders seeing their needs met, a plan for expanding gambling could come to fruition sometime in 2027.