The NBA defending world champion, Oklahoma City Thunder, has been outspoken in its desire to bring mobile sports betting to the Sooner State, where the team would get a piece of the handle generated from an exclusive sportsbook operator.
The Art of the Deal
Native American tribes jealously guard their control of the gaming industry, and Oklahoma’s tribes are no different. Recent attempts to legalize sports betting in the state have hit a logjam, with the tribes demanding a monopoly, while Oklahoma Governor Kevin Stitt has vowed to veto any sports betting bills that grant exclusivity to them.
A Possible Compromise
However, a compromise may be looming as the tribes have consented to sharing revenues with the NBA’s Oklahoma City Thunder franchise. Except for Texas, Oklahoma is one of only 11 states that have not legalized sports betting in some form. However, it is surrounded by states that have launched, or in Missouri’s case, are about to launch, sports betting. Legislators are trying to join those states and navigate a deal that would generate sports betting revenue for Oklahoma.
“In other markets, teams are getting direct licenses,” said Will Syring, vice president of corporate sponsorships for the Thunder. “If they’re getting licenses, they are getting paid off of those bets. The league also only allows you to take a percentage off the top.”
In the current scenario under discussion, for which the Thunder have advocated, the team would be allowed to take 0.25% of the total betting handle, and not the revenue, which would allow for greater profits. As an added bonus for the state, the lottery would be allowed to sell its tickets online, which would ostensibly increase revenues for that entity.
Jay Finks, executive director of the Oklahoma Lottery Commission, said, “As we’re looking at this expansion into gaming and as we look at Oklahoma evolving that, don’t forget about us, because [with] the addition of sports betting, forgetting about the Oklahoma Lottery does have the opposite effect, and that could take away the revenue that we’re driving for Oklahoma education.”
Tribes Open to Cooperating With the Thunder
Governor Stitt’s unwillingness to bend to the wishes of the tribes regarding their demands for exclusivity and control of the sports betting market has stalled any progress in reaching a solution tolerable to all stakeholders. However, recent developments may reveal a ray of hope as the tribes are willing to cooperate with the Thunder.
Matthew Morgan, chairman of the Oklahoma Indian Gaming Association, said, “If we can find a way forward and work with the Oklahoma City Thunder, that’s what we want to keep in mind as we move forward. They’re a big part of the discussion, and someone we want to ensure that we listen to their voice and their thoughts.”
Moreover, the state would be paid exclusivity fees by the tribes under the existing compact structure, which may assuage any concerns the governor has regarding granting them a monopoly.
The Thunder would be allowed access to the market on non-tribal lands, while each gaming tribe would have the option of creating its own mobile sportsbook or partnering with an existing sportsbook such as BetMGM, Caesars, DraftKings, FanDuel, or any other online gaming company that can obtain a license in the state.
