Oklahoma Gov. Vetoes Sweepstakes Ban; Louisiana Advances Crackdown

Oklahoma Gov. Kevin Stitt vetoed SB 1589 on May 7. The Oklahoma Legislature posted the bill’s status as “Vetoed 05/07/2026” on May 11. In his veto message, Stitt wrote the bill was “so broad that it criminalizes everyday apps people use for fun” and that it would “unnecessarily create a new felony and extend criminal liability to businesses and service providers.” He added the proposal’s “vague and overbroad approach creates uncertainty for businesses operating in good faith and discourages innovation and investment in our state.”

SB 1589 would have amended state gambling law to explicitly ban “online casino games,” defined as games that allow users to risk something of value on computers, mobile phones or tablets, including slots, lottery-style products and bingo. The bill defined “representative of value” to include any currency used in dual-currency payment systems that can be exchanged for prizes, cash or cash equivalents. It would have expanded potential criminal liability to suppliers, platform providers, geolocation firms, affiliates, payment processors and promoters. Violations would have been a Class C2 felony under Oklahoma law.

The Oklahoma Senate approved SB 1589 48-0 and the House passed it 65-21. State law requires a two-thirds vote in both chambers to override a gubernatorial veto; the Senate’s vote met that threshold but the House fell three votes short of the 68 needed to override. During the 2025 session the Legislature overrode 47 of 68 gubernatorial vetoes.

In Baton Rouge, the Louisiana House passed HB 883 99-0 and the Senate approved it 35-0 on May 12; the Senate made amendments and returned the bill to the House for concurrence. If the House agrees to the changes, HB 883 would go to Gov. Jeff Landry. The bill would expand the state’s “gambling by computer” statute to cover online and mobile games that simulate gambling and use dual-currency systems where players can exchange virtual currency for cash or prizes.

Lawmakers earlier this year passed HB 53, which amends Louisiana’s racketeering statute to add existing gambling offenses as predicate crimes for racketeering charges. HB 53 is awaiting Landry’s decision. Landry vetoed a statewide sweepstakes ban passed last year, stating existing enforcement tools were sufficient to address illegal operations.

Legislators in both states cited dual-currency sweepstakes systems that convert virtual tokens into cash or prizes when advancing the bills. The measures focus on payment mechanics and the role of third-party service providers in enabling those systems.