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SENATE FLOOR VERSION
February 20, 2025
AS AMENDED
SENATE BILL NO. 125 By: Rader
[ amusements and sports - state-tribal gaming -
exception - Gaming Compact Supplement - fees -
retention of funds - scope - codification - effective
date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 3A O.S. 2021, Section 262, is
amended to read as follows:
Section 262. A. If at least four Indian tribes enter into the
model tribal-state compact Model Tribal Gaming Compact set forth in
Section 281 of this title, and such compacts are approved by the
Secretary of the Interior and notice of such approval is published
in the Federal Register, the Oklahoma Horse Racing Commission
(“Commission”) shall license organization licensees which are
licensed pursuant to Section 205.2 of this title to conduct
authorized gaming as that term is defined by this act the State-
Tribal Gaming Act pursuant to this act the State-Tribal Gaming Act
utilizing gaming machines or devices au thorized by this act the
State-Tribal Gaming Act subject to the limitations of subsection C
of this section. No fair association or organization licensed
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pursuant to Section 208.2 of this title or a city, town or
municipality incorporated o r otherwise, or an instrumentality
thereof, may conduct authorized gaming as that term is defined by
this act the State-Tribal Gaming Act.
Notwithstanding the provisions of Sections 941 through 988 of
Title 21 of the Oklahoma Statutes, the conducting of and
participation in gaming in accordance with the provisions of this
act the State-Tribal Gaming Act or the model compact set forth in
Section 281 of this title is lawful and shall not be subject to any
criminal penalties. Provided further, a licensed manu facturer or
distributor licensed pursuant to this act the State-Tribal Gaming
Act may manufacture, exhibit or store as a lawful activity any
machines or devices which are capable of being used to conduct the
following types of gaming:
1. Gaming authorized by the State -Tribal Gaming Act; or
2. Other gaming which may be lawfully conducted by an Indian
tribe in this state.
B. Except for Christmas Day, authorized gaming may only be
conducted by an organization licensee on days when the licensee is
either conducting live racing or is accepting wagers on simulcast
races at the licensee ’s racing facilities. Authorized gaming may
only be conducted by organization licensees at enclosure locations
where live racing is conducted. Under no circumstances shall
authorized gaming be conducted by an organization licensee at any
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facility outside the organization licensee ’s racing enclosure. No
person who would not be eligible to be a patron of a pari -mutuel
system of wagering pursuant to the provisions of subsection B o f
Section 208.4 of this title shall be admitted into any area of a
facility when authorized games are played nor be permitted to
operate, or obtain a prize from, or in connection with, the
operation of any authorized game, directly or indirectly.
C. In order to encourag e the growth, sustenance and development
of live horse racing in this state and of the state ’s agriculture
and horse industries, the Commission is hereby authorized to issue
licenses to conduct authorized gaming to no more than three
organization licensees operating racetrack locations at which horse
race meetings with pari -mutuel wagering, as authorized by the
Commission pursuant to the provisions of this title, occurred in
calendar year 2001, as follows:
1. An organization licensee operating a racetrack location at
which an organization licensee is licensed to conduct a race meeting
pursuant to the provisions of Section 205.2 of this title located in
a county with a population exceeding six hundred thousand (600,000)
persons, according to t he most recent Federal Decennial Census,
shall be licensed to operate not more than six hundred fifty (650)
player terminals in any year. Beginning with the third year after
an organization licensee is licensed pursuant to this paragraph to
operate such player terminals , such licensee may be licensed to
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operate an additional fifty (50) player terminals. Beginning with
the fifth year after an organization licensee is licensed pursuant
to this paragraph to operate such player terminals, such licensee
may be licensed to operate a further additional fifty (50) player
terminals; and
2. Two organization licensees operating racetrack locations at
which the organization licensees are licensed to conduct race
meetings pursuant to the provisions of Section 205.2 of this title
located in counties with populations not exceeding four hundred
thousand (400,000) persons, according to the most recent Federal
Decennial Census, may each be licensed to operate not more than two
hundred fifty (250) player terminals in any yea r.
Subject to the limitations on the number of player terminals
permitted to each organization licensee, an organization licensee
may utilize electronic amusement games as defined in this act the
State-Tribal Gaming Act, electronic bonanza -style bingo games as
defined in this act the State-Tribal Gaming Act and electronic
instant bingo games as defined in this act the State-Tribal Gaming
Act, and any type of gaming machine or device that is specifically
allowed by law and that an Indian tribe in this state is authorized
to utilize pursuant to a compact entered into between the state and
the tribe in accordance with the provisions of the Indian Gaming
Regulatory Act and any other machine or device that an Indian tribe
in this state is lawfully permitted to operate pursuant to the
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Indian Gaming Regulatory Act, referred to collectively as
“authorized games”. An organization licensee ’s utilization of such
machines or devices shall be subject to the regulatory control and
supervision of the Commission; provided, the Commission shall have
no role in oversight and regulation of gaming conducted by a tribe
subject to a compact. The Commission shall promulgate rules to
regulate the operation and use of authorized gaming by organization
licensees. In promulgating such rules, the Co mmission shall
consider the provisions of any compact which authorizes electronic
gaming which is specifically authorized by law by an Indian tribe.
For the purpose of paragraphs 1 and 2 of this subsection, the number
of player terminals in an authorized game that permits multiple
players shall be determined by the maximum number of players that
can participate in that game at any given time; provided, however,
that nothing in this act the State-Tribal Gaming Act prohibits the
linking of player terminals f or progressive jackpots, so long as the
limitations on the number of permitted player terminals at each
organization licensee are not exceeded. Each organization licensee
shall keep a record of, and shall report at least quarterly to the
Oklahoma Horse Racing Commission, the number of games authorized by
this section utilized in the organization licensee ’s facility, by
the name or type of each and its identifying number.
D. No zoning or other local ordinance may be adopted or amended
by a political subdiv ision where an organization licensee conducts
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live horse racing with the intent to restrict or prohibit an
organization licensee ’s right to conduct authorized gaming at such
location.
E. For purposes of this act the State-Tribal Gaming Act,
“adjusted gross revenues” means the total receipts received by an
organization licensee from the play of all authorized gaming minus
all monetary payouts.
F. The Oklahoma Horse Racing Commission shall promulgate rules
to regulate, implement and enforce the provisions o f this act the
State-Tribal Gaming Act with regard to the conduct of authorized
gaming by organization licensees; provided, regulation and oversight
of games covered by a compact and operated by an Indian tribe shall
be conducted solely purs uant to the requirements of the compact.
G. If an organization licensee operates or attempts to operate
more player terminals which offer authorized games than it is
authorized to offer to the public by this act the State-Tribal
Gaming Act or the terms of its license, u pon written notice from the
Commission, such activity shall cease forthwith. Such activity
shall constitute a basis upon which the Commission may suspend or
revoke the licensee’s license. The Commission shall promulgate any
rules and regulations necessary to enforce the provisions of this
subsection.
H. This act The State-Tribal Gaming Act is game-specific and
shall not be construed to allow the operation of any other form of
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gaming unless specifically allowed by this act the State-Tribal
Gaming Act. This act The State-Tribal Gaming Act shall not permit
the operation of slot machines, house -banked card games, or house-
banked table games involving dice or roulette wheels, or games where
winners are determined by wagering on the outcome of a sports
contest; provided that in-person wagering and wagering conducted on
a mobile device on the outcome of sports contests may be conducted
in accordance with Section 3 of this act .
SECTION 2. AMENDATORY 3A O.S. 2021, Section 280, is
amended to read as follows:
Section 280. The State of Oklahoma through the concurrence of
the Governor after considering the executive prerogatives of that
office and the power to negotiate the terms of a compact between the
state and a tribe, and by means of the execution of the State -Tribal
Gaming Act, and with the concurrence of the State Legislature
through the enactment of the State -Tribal Gaming Act, hereby makes
the following offer of a model tribal gaming compact Model Tribal
Gaming Compact regarding gaming to all federally recognized Indian
tribes as identified in the Federal Register within this state that
own or are the beneficial owners of Indian lands as defined by the
Indian Gaming Regulatory Act, 25 U.S.C., Section 2703(4), and over
which the tribe has jurisdiction as recognized by the Secretary of
the Interior and is a part of the tribe ’s “Indian reservation” as
defined in 25 C.F.R., Part 151.2 or has been acquired pursuant to 25
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C.F.R., Part 151, which, if accepted, shall constitute a gaming
compact between this state and the accepting tribe for purposes of
the Indian Gaming Regulatory Act. Acceptance of the offer contained
in this section shall be through the signature of the chief
executive officer of the tribal government whose aut hority to enter
into the compact Compact shall be set forth in an accompanying law
or ordinance or resolution by the governing body of the tribe, a
copy of which shall be provided by the tribe to the Governor. No
further action by the Governor or the state is required b efore the
compact Compact can take effect. A tribe accepting this Model
Tribal Gaming Compact is responsible for submitting a copy of the
Compact executed by the tribe to the Secretary of the Interior for
approval and publication in the Fed eral Register. The tribe shall
provide a copy of the executed Compact to the Governor. No tribe
shall be required to agree to terms different than the terms set
forth in the Model Tribal Gaming Compact, which is set forth in
Section 281 of this title. As a preconditio n to execution of the
Model Tribal Gaming Compact by any tribe, the tribe must have paid
or entered into a written agreement for payment of any fines
assessed prior to the effective date of the State -Tribal Gaming Act
by the federal governme nt with respect to the tribe’s gaming
activities pursuant to the Indian Gaming Regulatory Act.
Notwithstanding the provisions of Sections 941 through 988 of
Title 21 of the Oklahoma Statutes, the conducting of and the
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participation in any game authorized by the model compact Model
Tribal Gaming Compact set forth in Section 281 of this title are
lawful when played pursuant to a compact which has become effective.
1. Prior to July 1, 2008, of all fees received by the state
pursuant to subsection A of Part 11 of the Model Tribal Gaming
Compact set forth in Section 281 of this title:
a. twelve percent (12%) shall be deposited in the
Oklahoma Higher Learning Access Trust Fund, and
b. eighty-eight percent (88%) of such fees shall be
deposited in the Education Reform Revolving F und.
2. On or after July 1, 2008, of all fees received by the state
pursuant to subsection A of Part 11 of the Model Tribal Gaming
Compact set forth in Section 281 of this title and Gaming Compact
Supplements offered pursuant to Section 2 280.1 of this title and
Section 3 of this act:
a. twelve percent (12%) shall be deposited in the General
Revenue Fund, and
b. eighty-eight percent (88%) of such fees shall be
deposited in the Education Reform Revolving Fund.
Provided, the first Twenty Thousand Eight Hundr ed Thirty-three
Dollars and thirty-three cents ($20,833.33) of all fees received
each month by the state pursuant to subsection A of Part 11 of the
Model Tribal Gaming Compact set forth in Section 281 of this title
and Gaming Compact Supplem ents offered pursuant to Section 2 280.1
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of this title and Section 3 of this act shall be transferred to the
Department of Mental Health and Substance Abuse Services for the
treatment of compulsive gambling disorder and educational programs
related to such disorder.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 280.2 of Title 3A, unless there
is created a duplication in numbering, reads as follows:
A. Provided that federal laws permit and pursuant to the offer
of the Model Tribal Gaming Compact made in Section 280 of Title 3A
of the Oklahoma Statutes and the definition of “covered games” in
the Model Tribal Gaming Compact codified in Section 281 of Title 3A
of the Oklahoma Statutes, which codified compac t offer provides that
the state may approve additional forms of covered games under the
compact by amendment of the State -Tribal Gaming Act and a compacting
tribe may operate such additional forms of covered games by written
supplement to an existing compact, the state hereby approves,
subject to this section, an additional game offering as follows:
“Sports pools” means any in-person wagering and wagering
conducted on a mobile device on the outcome of sporting events or
other events, other than horse or oth er animal races.
B. If a tribe that has compacted with the state in accordance
with Sections 280 and 281 of Title 3A of the Oklahoma Statutes
elects to accept this offer of an additional covered game and,
accordingly, to operate sports pool s under the terms of its existing
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gaming compact with the state, the tribe shall execute a supplement
to the compact, to provide as follows:
MODEL TRIBAL GAMING COMPACT SUPPLEMENT
Between the [Name of Tribe]
and the STATE OF OKLAHOMA
To be governed in accord with the [Na me of Tribe]’s State-Tribal
Gaming Compact (“Compact”), approved by the United States Department
of the Interior on [Date], the [Name of Tribe] (“Tribe”) accepts the
state’s offer of additional covered game codified in Section 280.2
of Title 3A of the Oklahoma Statutes, which offer and this
acceptance are subject to the following terms:
Part 1. TITLE
This document shall be referred to as the “[Name of Tribe] and
State of Oklahoma Gaming Compact Sports Pools Supplement (Gaming
Compact Supplement)”.
Part 2. TERMS
A. The Tribe hereby memorializes its election to accept the
state’s offer of an additional covered game, which offer is codified
in Section 280.2 of Title 3A of the Oklahoma Statutes. The Tribe
further certifies and agrees it shall not offer such additional
covered game unless and until doing so would be legal under federal
law.
B. The Tribe agrees, subject to the enforcement and exclusivity
provisions of its Compact, to pay to the state a fee derived from
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sports pool revenues calculated as set fo rth in paragraph 2 of this
subsection. Such fee shall be paid no later than the twentieth day
of the month for revenues received by the Tribe in the preceding
month.
1. The fee shall be:
a. five percent (5%) of the first Five Million Dolla rs
($5,000,000.00) of monthly net win received by a Tribe
in a calendar year from the p lay of sports pools,
b. six percent (6%) of the next Five Million Dollars
($5,000,000.00) of adjusted gross revenues received by
a Tribe in a calendar year from the play of sports
pools, and
c. seven percent (7%) of all subsequent adjusted gross
revenues received by a Tribe in a calendar year from
the play of sports pools.
2. Payment of such fee shall be made to the Treasurer of the
State of Oklahoma. Nothing herein sha ll require the allocation of
such fee to particular state purposes including, but not limited to,
the actual costs of performing the State ’s regulatory
responsibilities hereunder. “Net win” shall mean all money wagered
less prizes paid out and less applicable federal ta xes. For all
purposes, such payment shall be deemed an exclusivity and fee
payment under paragraph 2 of subsection A of Part 11 of the Model
Tribal Gaming Compact between the electing Tribe and the State.
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C. The Tribe’s operation of sports pools pursuant to this
Gaming Compact Supplement shall, for all purposes, including
enforcement and exclusivity, be treated as subject to and lawfully
conducted under the terms and provisions of the Compact.
Part 3. AUTHORITY TO EXECUTE
This Gaming Compact Supplement, to the extent it conforms with
Section 280.2 of Title 3A of the Oklahoma Statutes, is deemed
approved by the State of Oklahoma . No further action of the State
or any state official is necessary for this Gaming Compact
Supplement to take eff ect upon approval by the Secretary of the
United States Department of the Interior and publication in the
Federal Register. The undersigned tribal official(s) represents
that he or she is duly authorized and has the authority to execute
this Gaming Compact Supplement on behalf of the Tribe for whom he or
she is signing.
APPROVED:
[Name of Tribe]
________________________ Date: __________
[Title]
A. A tribe electing to accept this additional game offering is
responsible for submitting a copy of the execut ed supplement to the
Secretary of the United States Department of the Interior for
approval and publication in the Federal Register.
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B. Upon approval of a supplement by the Secretary of the United
States Department of the Interior, said supplement shall be
construed as an acceptance of this offer and a supplement to the
Tribe’s existing Model Tribal Gaming Compact with the State.
Thereafter, sports pools shall be deemed a covered game pursuant to
said Compact.
C. The Tribe is entitled to keep an amount e qual to state
payments from the operation of sports pools. For all purposes, such
payment shall be deemed an exclusivity and fee payment under
paragraph 2 of subsection A of Part 11 of the Model Tribal Gaming
Compact between the electing Tribe and the State.
D. The offer contained in this section shall not be construed
to permit the operation of any additional form of gaming by
organization licensees or permit any additional electronic or
machine gaming within Oklahoma.
E. Notwithstanding the provisions of Sections 941 through 988
of Title 21 of the Oklahoma Statutes, the conducting of and
participation in any game authorized pursuant to this section are
lawful when played pursuant to a compact supplement which has become
effective in accordance with this section.
SECTION 4. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
February 20, 2025 - DO PASS AS AMENDED