Oklahoma Governor Kevin Stitt has vetoed a bill aimed at banning sweepstakes casinos, while lawmakers in Louisiana moved forward with another measure designed to tighten enforcement against unregulated online gambling operators.
In Oklahoma, Senate Bill 1589 was officially vetoed on May 7 despite receiving overwhelming backing in the Legislature. The proposal sought to expand the state’s gambling laws by explicitly prohibiting online casino-style games played through computers, mobile devices, and tablets.
The bill specifically targeted sweepstakes casinos through its definition of “representative of value,” covering dual-currency systems that allow players to exchange virtual coins or credits for cash prizes or equivalents. It also proposed extending criminal liability beyond operators to include payment processors, platform providers, geolocation companies, affiliates, suppliers, and promoters connected to illegal gambling activity.
Under the proposal, violations would have been treated as a Class C2 felony.
In his veto message, Governor Stitt argued the language was too broad and could unintentionally criminalize common entertainment apps. He also warned the legislation created uncertainty for businesses operating legally and could discourage innovation and investment in Oklahoma.
Stitt said the state could address consumer protection concerns without introducing criminal penalties that extend beyond the intended targets.
The bill had previously passed the Oklahoma Senate unanimously in a 48-0 vote and cleared the House 65-21. However, the House result fell short of the two-thirds majority required to override a gubernatorial veto. Lawmakers could still attempt an override during the current session.
At the same time, Louisiana lawmakers advanced House Bill 883, which unanimously passed the Senate in a 35-0 vote after earlier receiving House approval by a 99-0 margin.
The measure would update Louisiana’s “gambling by computer” statute to include online and mobile gambling-style games using dual-currency systems where virtual currency can later be redeemed for prizes or cash.
The bill now heads back to the House for approval of Senate amendments before potentially reaching Governor Jeff Landry’s desk.
Louisiana legislators have also already passed HB 53, another proposal targeting illegal gambling operations. That measure would expand the state’s racketeering laws by adding several gambling-related offenses often associated with sweepstakes casino enforcement.
The latest efforts come after Louisiana lawmakers attempted to ban sweepstakes casinos last year. Governor Landry vetoed that earlier legislation, saying existing enforcement tools were already sufficient to address illegal operators.
The developments in both Oklahoma and Louisiana reflect the growing nationwide push by regulators and lawmakers to crack down on sweepstakes casinos and dual-currency gaming models operating outside traditional gambling frameworks.