Oklahoma House Committee Advances Anti-Sweepstakes Bill
Oklahoma lawmakers have moved a step closer to shutting down sweepstakes-style gambling platforms after Senate Bill 1589 cleared another stage in the House. The proposal, already approved unanimously in the Senate earlier in March, passed the House Criminal Judiciary Committee without opposition, 6-0.
The measure focuses on dismantling the structure used by sweepstakes casinos, which have operated for years in a legal gray area. Lawmakers are now targeting how these platforms function rather than what they call themselves.
At the center of the bill is the dual-currency system. Online sweepstakes platforms typically sell non-redeemable tokens while offering separate promotional credits that can be exchanged for cash or prizes.
SB 1589 reframes that setup. It expands the definition of online casino gaming to include any digital simulation of slots, poker, or lottery-style games in which something of value is involved, even if that value is indirect or promotional. That change closes the gap operators relied on.
The enforcement scope is quite evident. It goes beyond operators and covers affiliate networks, marketing partners, software developers, and geolocation providers associated with the platform.
In fact, all parties involved in promoting sweepstakes casinos can be exposed. Violations would be treated as Class C2 felonies, with fines ranging from $500 to $2,000, placing sweepstakes operators in the same category as illegal bookmakers under state law.
Sen. Todd Gollihare, a sponsor of the bill, said the activity has diverted revenue away from regulated channels. The bill was adjusted after discussions with tribal representatives to carve out an exemption for tribal operations tied to existing federal frameworks.
If approved in the next committee stage and signed by Gov. Kevin Stitt, the law would take effect on Nov. 1.
Maine Governor signs sweepstakes ban bill
While Oklahoma's proposal leans on criminal penalties, Maine has taken a different route but reached a similar outcome. Gov. Janet Mills signed LD 2007 into law this week, formally banning sweepstakes casinos and defining their operations as unlawful gambling.
The law classifies any online platform that simulates real-money online casino games and uses both paid and promotional credits as an illegal sweepstakes system. It also provides for direct consideration, including tokens or credits earned via payment or promotion, enabling participation in prize-linked gaming. The definitions are broad enough to encompass all current lottery structures.
Legal action in Maine will follow civil, rather than criminal, procedure. Penalties are set between $10,000 and $100,000 per violation, with all funds to be placed into the Gambling Addiction Prevention and Treatment Fund.
License holders must also be wary of violating any of these provisions, as license suspension is automatic for anyone who does. Implementation is scheduled for July, approximately 90 days after the legislative session ends.
