A bill that would outlaw Sweeps Coin gameplay at sweepstakes casinos in Oklahoma continues to progress in the state legislature.
House Bill 4130 essentially adds any type of online casino gaming to the purview of current or future gambling that cannot be offered by any entities in Oklahoma other than tribes operating under the Indian Gaming Regulatory Act. And, in addition to the new “online casino games” language created by the bill, HB4130 also modifies the definition of “representatives of value” to include the gaming model employed by most traditional sweepstakes casinos, thus classifying sweeps gaming as online gambling.
HB4130 passed its second House committee on Friday — with both committee votes on Feb. 17 and Feb. 26 being unanimous approvals — and on Friday it also added Sen. Todd Gollihare as a second author, setting the stage for its potential pathway through the Senate.
First, however, the bill will need to pass a full House floor vote. Oklahoma bills are often scheduled for full floor consideration after passing through two committee hearings.
How HB4130 would affect sweeps casinos in Oklahoma
Specifically, HB4130 defines “online casino games” as:
Any gambling game that allows a person to access the Internet, World Wide Web, or any part thereof by way of any computer, computer system, computer network, computer software, computer terminal, or similar device including, but not limited to, a cellular or mobile telephone, a smart or electronic watch, or a tablet which, upon risking any representatives of value, simulates any gambling game contemplated in this section or any other form of gambling …
And then it goes on to define “representatives of value” as:
Any and all currency used as part of a dual-currency system of payment allowing a person to exchange such currency for any prize, award, cash, or cash equivalent, or any chance to win any prize, award, cash, or cash equivalent.
The “dual-currency” language is a direct reference to the Gold Coin and Sweeps Coin gaming ecosystem used by most sweeps casinos.
Gold Coins are sold directly to players, but they function only as entertainment inside the platform and have no cash value. They can’t be exchanged for money or prizes outside the site.
Sweeps Coins work differently. They may be redeemed for real-world cash prizes, but they can’t be bought. Instead, players receive them through promotional methods — such as mailing in a request, collecting daily login rewards, or receiving them as bonuses with Gold Coin purchases.
There’s a twin on the other side, too
HB4130 is essentially the same bill as Senate Bill 1589, with only a couple additions seen in SB1589 that make no impact on the language affecting sweeps. Gollihare authored SB1589 and, not so coincidentally, Rep. Scott Fetgatter, the author of HB4130, was also recently added as the co-author for SB1589.
SB1589 cleared the Senate Business and Insurance Committee and was placed on the General Order — meaning up next is an assignment for full Senate floor time — on Feb. 24.
Oklahoma’s legislative session ends on May 29, leaving plenty of time for these twin bills.
This was brewing since December
This situation was foreshadowed in December at the winter meeting of the National Council of Legislators from Gaming States (NCLGS).
There, Matthew Morgan, the Oklahoma Indian Gaming Association Chairman, suggested that a bill banning sweepstakes casinos may be on the table in Oklahoma’s next legislative session. And, lo and behold, we’ve got two on the table.
And it makes sense, given the context of Oklahoma’s gambling ecosystem. It mirrors that of California, with gaming tribes operating casinos in the state and all other house-banked gambling illegal off-reservation. In fact, tribes may run things even more in Oklahoma, where there is no significant presence of cardrooms — unlike California, where tribes have argued for years cardrooms operate illegally and challenge tribal autonomy over gambling in the state.
Oklahoma also has a larger physical tribal gambling footprint, with nearly double the amount of casinos as California tribes.
So, in other words, it’s no surprise to see the introduction — and early success — of HB4130 and SB1589 after Oklahoma tribes and lawmakers saw the utter and complete success of California Assembly Bill 831, which ousted Sweep Coin gameplay at sweepstakes casinos in California with essentially zero resistance from those outside the sweeps industry as it breezed through the state legislature.
Either Oklahoma bill, if passed, would take effect Nov. 1.
