OK
Oklahoma Senate Bill SB164

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB164 Compare Versions

Only one version of the bill is available at this time.
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5353 STATE OF OKLAHOMA
5454
5555 1st Session of the 60th Legislature (2025)
5656
5757 SENATE BILL 164 By: Murdock
5858
5959
6060
6161
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6363 AS INTRODUCED
6464
6565 An Act relating to the Oklahoma Education Lottery
6666 Act; amending 3A O.S. 2021, Section 703 , as amended
6767 by Section 1, Chapter 443, O.S.L. 2024 (3A O.S. Supp.
6868 2024, Section 703), which relates to definitions;
6969 updating statutory language; defining terms; amending
7070 3A O.S. 2021, Section 709, which relates to the
7171 powers of the Oklahoma Lottery Commission; updating
7272 statutory reference; authorizing the board of
7373 trustees to enter into agreements or contracts for
7474 the implementation of sports pools; allowing for
7575 certain agreements to be made; providing for
7676 promulgation of rules for the implementation of
7777 sports pools; authorizing the board of trustees t o
7878 develop criteria for licensure of retailers seeking
7979 to operate sports pools; specifying certain criteria
8080 for licensure; providing for licensing fees;
8181 requiring the Oklahoma Lottery Commission to provide
8282 annual reports, conduct internal audits, and mainta in
8383 records; exempting individuals from certain penalty
8484 if played lawfully; pro viding for promulgation of
8585 rules; creating the Sports Pools Fund; stating
8686 purpose; establishing funding procedures; requiring a
8787 certain appropriation; repealing 3A O.S. 2021,
8888 Section 735, which relates to prohibition of other
8989 Class III gaming; providing for codification; and
9090 providing an effective date .
9191
9292
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9494
9595 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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146146
147147 SECTION 1. AMENDATORY 3A O.S. 2021, S ection 703, as
148148 amended by Section 1, Chapter 443, O.S.L. 2024 (3A O.S. Supp. 2 024,
149149 Section 703), is amended to read as follows:
150150 Section 703. As used in the Oklahoma Education Lottery Act:
151151 1. “Administrative expenses ” means operating expenses,
152152 excluding amounts set aside for prizes, regardless of whether such
153153 prizes are claimed;
154154 2. “Board” means the board of trustees of the Oklahoma Lottery
155155 Commission;
156156 3. “Capital outlay projects ” means the acquisition,
157157 construction, installation, modification, renovatio n, repair,
158158 extension, renewal, replacement, or rehabilitation of land,
159159 interests in land, buildings, structures, facilities, or other
160160 improvements and the acquisition, installation, modification,
161161 renovation, repair, extension, renewal, replacement, rehabil itation,
162162 or furnishing of fixtures, machinery, equipment, computers,
163163 software, laboratories, furniture, textbooks, and reference material
164164 or other property of any nature whatsoever used on, in, or in
165165 connection with educational facilities;
166166 4. “Commission” means the Oklahoma Lottery Commission;
167167 5. “Educational facilities ” means land, structures, and
168168 buildings owned or operated by and through the Oklahoma State
169169 Regents for Higher Education, the State Board of Education, the
170170 Oklahoma Department of Career and Technology Education, or by any
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222222 school district within this state. A public road or highway leading
223223 to an educational facility shall not be considered an educational
224224 facility;
225225 6. “Executive director” means the chief executive officer and
226226 administrator of the Oklahoma Lottery Commission;
227227 7. “Gross proceeds” means all revenue deri ved from the sale of
228228 lottery tickets or shares and all other monies derived from the
229229 lottery;
230230 8. “Instant ticket” means a lottery ticket that requires the
231231 player to remove a coa ting to determine if a prize has been won;
232232 9. “Lottery”, “lotteries”, “lottery game”, or “lottery games”
233233 means an activity conducted by the Commission under the Oklahoma
234234 Education Lottery Act through which prizes are awarded or
235235 distributed by chance among persons who have paid for a chance or
236236 other opportunity to receive a prize, i ncluding, but not limited to,
237237 instant tickets and on-line online games, but excluding charity
238238 bingo and games conducted pursuant to the Oklahoma Charity Games
239239 Act, poker, blackjack, slot machines, pulltab machines, card games,
240240 dice, dominos, roulette wheels, or other similar forms of gambling,
241241 or electronic or video forms of these gambling activities, or games
242242 where winners are determined by the outcome of a sports contest, or
243243 pari-mutuel betting conducted pursuant to the Oklahoma Horse Racing
244244 Act;
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296296 10. “Major procurement contract ” means any gaming product or
297297 service costing in excess of Twenty -five Thousand Dollars
298298 ($25,000.00), including, but not limited to, major advertising
299299 contracts, annuity contracts, prize payment agreements, consulting
300300 services, equipment, tickets, and other products and services unique
301301 to the Oklahoma lottery, but not including materials, supplies,
302302 equipment, and services common to the ordinary operations o f the
303303 Commission;
304304 11. “Member” or “members” means a trustee or trustees of th e
305305 board of trustees of the Oklahoma Lottery Commission;
306306 12. “Member of a minority ” means an individual who is a member
307307 of a race which comprises less than fifty percent (50%) of the total
308308 population of Oklahoma;
309309 13. “Minority business” means any business which is owned by:
310310 a. an individual who is a member of a minority who
311311 reports as the personal income of the individual for
312312 Oklahoma income tax purposes the income of the
313313 business,
314314 b. a partnership in which a majority of the ownership
315315 interest is owned by one or more members of a minority
316316 who report as their personal income for Oklahoma
317317 income tax purposes more than fifty percent (50%) of
318318 the income of the partnership, or
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370370 c. a corporation organized under the laws of this state
371371 in which a majority of the common stock is owned by
372372 one or more members of a minority who report as their
373373 personal income for Oklahoma income tax purposes more
374374 than fifty percent (50%) of the distributed earn ings
375375 of the corporation;
376376 14. “Net proceeds” means all revenue derived from th e sale of
377377 lottery tickets or shares and all other monies derived from the
378378 lottery less operating expenses;
379379 15. “On-line “Online games” means a game where tickets or
380380 shares are purchased through a network of computer terminals located
381381 at retail outlets, and such terminals are linked to a central
382382 computer that records the purchases;
383383 16. “Operating expenses” means all costs of doing business,
384384 including, but not limited to, prizes, commissions, and other
385385 compensation paid to retailers, advertising and marketi ng costs,
386386 personnel costs, capital costs, administration, and operation of the
387387 Commission and the lottery, and other operating costs;
388388 17. “Pari-mutuel betting” means the pari-mutuel system of
389389 wagering as defined in Section 200.1 of this title. Such term shall
390390 not include a lottery game which may be predicated on a horse -racing
391391 scheme that does not involve actual track events or traditional
392392 lottery games which may involve the dis tribution of winnings by
393393 pools;
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445445 18. “Person” means any individual, corporatio n, partnership,
446446 unincorporated association, limited liability company, or other
447447 legal entity;
448448 19. “Retailer” means a person who sells lottery tickets or
449449 shares on behalf of the Commission pursuant to a contract;
450450 20. “Share” means any intangible evidence of participation in a
451451 lottery game;
452452 21. “Sports pools” means any in-person wagering and wagering
453453 conducted on a mobile device on the outcome of sporting events or
454454 other events, other than horse or other animal races;
455455 22. “Sports pools retailer ” means any licensed in-person
456456 establishment or Internet -based application that allows for an
457457 individual to wager on sports pools;
458458 23. “Ticket” means any tangible evidence issued by the lo ttery
459459 to provide participation in a lottery game; and
460460 22. 24. “Vendor” means a person who provides or proposes to
461461 provide goods or services to the Commission pursuant to a major
462462 procurement contract, but does not include an employee of the
463463 Commission, a retailer, or a state agency or instrumentality
464464 thereof. Such term does not inc lude any corporation whose shares
465465 are publicly traded and which is the parent company of the
466466 contracting party in a major procurement contract.
467467 SECTION 2. AMENDATORY 3A O.S. 2021, Section 709, is
468468 amended to read as follows:
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520520 Section 709. A. The Oklahoma Lottery Commission shall have any
521521 and all powers necessary or convenient to its usefulness in carrying
522522 out and effectuating the purposes and provisions o f the Oklahoma
523523 Education Lottery Act which are not in conflict with the Oklaho ma
524524 Constitution and laws of this state including, but not limited to,
525525 the following:
526526 1. To sue and be sued in contract, equity, mandamus, and
527527 similar actions in its own name and to complain and defend in all
528528 courts;
529529 2. To adopt and alter a seal;
530530 3. To hold copyrights, trademarks, and service marks and
531531 enforce its rights with respect thereto;
532532 4. To acquire or lease real property and make improvements
533533 thereon and acquire by leas e or by purchase personal property,
534534 including, but not limited to, computers a nd intangible property,
535535 including, but not limited to, computer programs, systems, and
536536 software;
537537 5. To enter into contracts to incur debt in its own name and
538538 enter into financing agreements with the state, agencies or
539539 instrumentalities of the state, or with any commercial financial
540540 institution or credit provider as provided in Section 732 of this
541541 title;
542542 6. To select and contract with vendors and retailers;
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594594 7. To enter into cont racts or agreements with state or local
595595 law enforcement agencies for the perfo rmance of law enforcement,
596596 background investigations, and security checks;
597597 8. To administer oaths, take depositions, issue subpoenas, and
598598 compel the attendance of witnesses and the production of books,
599599 papers, documents, and other evidence relative to any investigation
600600 or proceeding conducted by the Commission;
601601 9. To enter into contracts of any and all types on such terms
602602 and conditions as the Commission may determine;
603603 10. To advertise and promote the lottery and lottery games.
604604 None of the advertisement and promotion for games and products
605605 offered by the Oklahoma Lottery allowed by this paragraph shall
606606 involve children under the age of eighteen (18) in any manner;
607607 11. To inform the public about Oklahoma Lottery Commission
608608 contributions to Oklahoma education programs; and
609609 12. To act as a retailer, to conduct promotions which involve
610610 the dispensing of lottery tickets or shares, and to establish and
611611 operate a sales facility to se ll lottery tickets or shares and any
612612 related merchandise.
613613 B. The board of tru stees of the Oklahoma Lottery Commission
614614 shall have any and all powers necessary or convenient to its
615615 usefulness in carrying out and effectuating the purposes and
616616 provisions of the Oklahoma Education Lottery Act which are not in
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668668 conflict with the Oklahoma Constitution and laws of this state
669669 including, but not limited to, the following:
670670 1. To adopt, amend, and repeal policies and procedures and to
671671 promulgate rules for the regulati on of its affairs and the conduct
672672 of its business, to prescribe the duties of officers of the board,
673673 and to perform such other duties as may be required by law. In the
674674 promulgation of rules, the board shall be subject to the
675675 Administrative Procedures Act;
676676 2. To procure insurance;
677677 3. To initiate, supervise, and administer the operation of the
678678 lottery in accordance with the provisions of the Oklahoma Education
679679 Lottery Act and rules, policies, and procedures adopted pursuant
680680 thereto;
681681 4. To enter into writt en agreements with one or more other
682682 states or sovereigns for the operation, p articipation in marketing,
683683 and promotion of a joint lottery or joint lottery games. Such an
684684 agreement may be entered into with a federally recognized Indian
685685 tribe only if a coop erative agreement authorizing the Commission to
686686 do so has been entered into by the Governor and such a tribe and has
687687 been further approved by the Joint Committee on State -Tribal
688688 Relations pursuant to the provisions of Section 1221 et seq. of
689689 Title 74 of the Oklahoma Statutes;
690690 5. To direct the executive director to conduct or have
691691 conducted such market research as is necessary or appropriate, which
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743743 may include an analysis of the demographic characteristics of the
744744 players of each lottery game and an analysis of advertising,
745745 promotion, public relations, incentives, and other aspects of
746746 communication; and
747747 6. To adopt and amend such rules, policies, and procedures as
748748 necessary to implement its powers and duties, organize and operate
749749 the Commission, regulate the conduct of lottery games in general,
750750 and any other matters necessary or desir able for the efficient and
751751 effective operation of the lottery or the convenience of the public ;
752752 7. To enter into written agreements with one or more other
753753 states or sovereigns f or the operation, participation in marketing,
754754 and promotion of sports pools. Such an agreement may be entered
755755 into with a federally recognized Indian tribe for in -person sports
756756 pool games only if a cooperative agreement authorizing the
757757 Commission to do so has been entered into by the Governor and such a
758758 tribe and has been further a pproved by the Joint Committee on State -
759759 Tribal Relations pursuant to the provisions of Section 1221 et seq.
760760 of Title 74 of the Oklahoma Statutes; and
761761 8. To adopt and amend such rules, policies, and procedures as
762762 necessary to implement its powers and duties, organize and operate
763763 the Commission, regulate the conduct of sports pools in general, and
764764 any other matters necessary or desirable for the efficient and
765765 effective operation of the sports pools or the convenience of the
766766 public.
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818818 C. The powers enumerated in subsections A and B of this section
819819 are cumulative of and in addition to those powers enumerated
820820 elsewhere in the Oklahoma Education Lottery Act, and no such powers
821821 limit or restrict any other powers of the Oklahoma Lottery
822822 Commission or the board of trustees.
823823 SECTION 3. NEW LAW A new section of law to be codified
824824 in the Oklahoma Statutes as Section 713.1A of Title 3A, unless there
825825 is created a duplicati on in numbering, reads as follows:
826826 There is hereby created in the State Treasu ry a fund for the
827827 Oklahoma Lottery Commission to be designated the “Sports Pools
828828 Fund”. The fund shall be a continuing fund, not subject to fiscal
829829 year limitations, and shall co nsist of all monies received by the
830830 Commission from net revenue received from sports pools wagering and
831831 license fees collected pursuant to Section 4 of this act. All
832832 monies accruing to the credit of the fund shall be appropriated at
833833 the discretion of the Legislature for the purpose of funding
834834 gambling addiction programs, common edu cation, and administrative
835835 costs associated with implementing this act; provided, an
836836 appropriation from the fund no less than One Million Dollars
837837 ($1,000,000.00) shall be made to the Department of Mental Health and
838838 Substance Abuse Services for the purpose of treating individuals who
839839 may struggle with gambling addiction.
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891891 SECTION 4. NEW LAW A new section of law to be codified
892892 in the Oklahoma Statutes as Secti on 717.1 of Title 3A, unless there
893893 is created a duplication in numbering, read s as follows:
894894 A. The board of trustees of the Oklahoma Lottery Commission
895895 shall develop a list of objective criteria upon which the
896896 qualification of a licensed sports pools reta iler, as defined in
897897 Section 703 of Title 3A of the Oklahoma Statutes, shall be based.
898898 In developing these criteria, the board shall consider such factors
899899 as the financial responsibility of the applicant, security of the
900900 place of business or activity of th e applicant, accessibility to the
901901 public, integrity, and reputation. The boar d shall not consider
902902 political affiliation, activities, or contributions to political
903903 committees or candidates for any public office. The criteria shall
904904 include, but not be limi ted to, the following:
905905 1. The applicant shall be current in filing all applicable tax
906906 returns and in payment of all taxes, interest, and penalties owed on
907907 state or federal taxes, excluding items under formal appeal pursuant
908908 to applicable statutes;
909909 2. No person, partnership, unincorporated association,
910910 corporation, or other busines s entity or principal, officer, or
911911 director of a corporation or other business entity shall be selected
912912 as a licensed sports pools retailer who:
913913 a. has been convicted of or is aw aiting sentencing on a
914914 plea of guilty or nolo contendere to a criminal
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966966 offense related to the security or integrity of the
967967 lottery in this or any other jurisdiction,
968968 b. has been convicted of or is awaiting sentencing on a
969969 plea of guilty or nolo contendere to any illegal
970970 gambling activity, false statements, false swearing,
971971 or perjury in this or any other jurisdiction ,
972972 c. has been convicted of or is awaiting sentencing on a
973973 plea of guilty or nolo contendere to any crime
974974 punishable by more than one (1) year of imprisonment
975975 or a fine more than One Thousand Dollars ($1,000.00)
976976 or both, unless the civil rights of the person have
977977 been restored and at least five (5) years have elapsed
978978 from the date of the completion of the sentence
979979 without a subsequent conviction of a crime described
980980 in this subparagraph,
981981 d. has been found to have violated th e provisions of the
982982 Oklahoma Education Lottery Act or any rule, policy, or
983983 procedure of the Commission unless either ten (10)
984984 years have passed since the violation or the board
985985 finds the violation both minor and unintentional in
986986 nature,
987987 e. is a vendor or any employee or agent of any vendor
988988 doing business with the Commission,
989989
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10401040 f. resides in the same household as the executive
10411041 director, any board member, or any employee of the
10421042 Commission, or
10431043 g. has made a statement of material fact to the
10441044 Commission knowing su ch statement to be false;
10451045 3. Any sports pools retailer contract executed pursuant to this
10461046 section may, for good cause, be suspended, revoked, or terminated by
10471047 the executive director or designee if the retailer is found to have
10481048 violated any provisions of the Oklahoma Education Lottery Act or
10491049 objective criteria established by the board. Review of such
10501050 activities shall be in accordance with the procedures outlined in
10511051 the Oklahoma Education Lottery Act and shall not be subject to the
10521052 Administrative Procedures Act; and
10531053 4. All sports pools retailer contracts may be renewable
10541054 annually in the discretion of the Commission unless sooner canceled
10551055 or terminated.
10561056 B. Licenses issued by the O klahoma Lottery Commission for
10571057 sports pools retailers shall be as follows:
10581058 1. For in-person wagering, fifteen percent (15%) of the
10591059 adjusted gross revenues received in a calendar year from the play of
10601060 sports pools; and
10611061 2. For wagering conducted on a mobil e device, the following:
10621062
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11131113 a. an initial fee of Five Hundred Thousand Dollars
11141114 ($500,000.00) with an annual fee of One Hundred
11151115 Thousand Dollars ($100,000.00), and
11161116 b. twenty percent (20%) of the adjusted gross revenues
11171117 received in a calendar year from the play of sports
11181118 pools.
11191119 C. To ensure the financial integrity of sports pools, the
11201120 Oklahoma Lottery Commission through its board of trustees shall:
11211121 1. Electronically submit annual reports to the Governor, State
11221122 Auditor and Inspector, Oklahoma State Bureau of In vestigation, and
11231123 Attorney General, disclosing the total sports pools revenues, prize
11241124 disbursements, operating expenses, and administrative expenses of
11251125 the Commission. The annual report shall additionally describe the
11261126 organizational structure of the Commis sion and summarize the
11271127 functions performed by each organizational division within the
11281128 Commission;
11291129 2. Adopt a system of internal audits; and
11301130 3. Maintain weekly or more frequent records of lottery
11311131 transactions, including the distribution of tickets or shar es to
11321132 retailers, revenues received, claims for prizes, prizes paid, prizes
11331133 forfeited, and other financial transactions of the Commission.
11341134 D. Notwithstanding the provisions of Sections 941 through 988
11351135 of Title 21 of the Oklahoma Statutes, the conducting of and
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11871187 participation in any game authorized pursuant to this section is
11881188 lawful when played pursuant to this section.
11891189 E. The board of trustees of the Oklahoma Lottery Commission
11901190 shall promulgate any rules necessary for the implementation of
11911191 sports pool wagering in this state.
11921192 SECTION 5. REPEALER 3A O.S. 2021, S ection 735, is hereby
11931193 repealed.
11941194 SECTION 6. This act shall become effective November 1, 2025.
11951195
11961196 60-1-1232 CAD 12/30/2024 12:21:53 PM