At the recent annual meeting of the United Indian Nations of Oklahoma Kansas and Texas, sports betting was the major topic. Creek Nation Chief Executive Officer Pat Crofts said, “We view sports betting with a lot of excitement. We are going to be dealing with a lot of new legislators and a new governor. So the one thing we know is it won’t happen quickly.”
Crofts said he and other tribal officials recently toured sports betting facilities on the Mississippi Gulf Coast. “Those sports books are drawing customers from all over the southeastern United States. They come in to make a few bets on the games and stay for a day or a weekend. It has brought a lot of new customers into their facilities. We think that could happen here, too, especially those casinos down near the Red River,” Crofts said.
He predicted sports betting could be legalized in Oklahoma as early as next summer. Others have suggested 2020 is more likely, such as Osage Casinos Chief Executive Officer Byron Bighorse. “I think 2020 might be the earliest for us, and that would be a pretty aggressive calendar. We have an upcoming election of our state’s new governor. We will need some type of legislation. Sports betting is a complex issue with a lot of variables. There are a lot of steps that need to be taken before you will see sports books start popping up around the state.”
Before tribal casinos could offer sports betting, the legislature would need to pass legislation to amend tribal gaming compacts to allow sports betting, and the governor would have to sign off on it. Oklahoma tribes will begin renegotiating state gambling compacts next year and into 2020. Some tribal compacts contain an evergreen clause allowing the agreement to continue for a defined period if the existing agreement is not renegotiated or properly canceled. The Innovation Group President Michael Soll noted, “We don’t know what will happen legislative-wise in your state. However, what we do know is that Oklahoma may have more gaming-possible tribal land than any other state.”
Michell Hicks, former chief of the Eastern Band of Cherokees and president at Chief Strategy Group in Cherokee, North Carolina, cautioned tribes need to take their time regarding sports betting. He said, “The door has been opened. However, it is very important that every tribe make sure it is a concept they want to do. Then, you have to make sure it is a critical piece of what you can do. It takes a lot of planning. I think it is wise to take your time and do what is best for each tribe. It is different for everyone.”
Caesars Entertainment Senior Vice President of Strategic Development and Enterprise Gaming Walt Fales agreed. He added, “These things can take a long time. Sometimes, there is a long lead time. However, my suggestion is for tribes to do their homework and start working now. Investigate what they want to do and how best to operate it. So when an agreement is reached, you can shorten the time it takes to get up and running.”
Fales said tribes should not consider sports books a big profit center. “I think in many cases sports betting is more of an amenity for your customers. The margins are very small, and it is a complex addition. However, I would compare it to providing food and beverage or entertainment. It is something your customers want, and they want it to be convenient.”
Tribes considering sports betting also need to consider taxes. SG Digital Vice President Kevin Vonasek said depending on the tax rate, some wagerers could go online or to a sports book at a casino in a neighboring state. “You have to monitor your competition, what they are offering, either within your state or in neighboring states.” Currently, Mississippi is the closest state to Oklahoma where wagerers can legally place a sports bet.
In addition, the experts noted, tribes will have to determine how their sports books actually will operate. Many have hire established sports betting operations with experience in setting lines and training personnel. Cherokee Nation Entertainment Chief Operating Officer Mark Fulton noted, “There’s going to be a gold rush on talent for guys who make the lines.”
