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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 164 By: Murdock
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4
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5
5
6 AS INTRODUCED
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7 An Act relating to the Oklahoma Education Lottery
7 Act; amending 3A O.S. 2021, Section 703, as amended
8 by Section 1, Chapter 443, O.S.L. 2024 (3A O.S. Supp.
8 2024, Section 703), which relates to definitions;
9 updating statutory language; defining terms; amending
9 3A O.S. 2021, Section 709, which relates to the
10 powers of the Oklahoma Lottery Commission; updating
10 statutory reference; authorizing the board of
11 trustees to enter into agreements or contracts for
11 the implementation of sports pools; allowing for
12 certain agreements to be made; providing for
12 promulgation of rules for the implementation of
13 sports pools; authorizing the board of trustees to
13 develop criteria for licensure of retailers seeking
14 to operate sports pools; specifying certain criteria
14 for licensure; providing for licensing fees;
15 requiring the Oklahoma Lottery Commission to provide
15 annual reports, conduct internal audits, and maintain
16 records; exempting individuals from certain penalty
16 if played lawfully; providing for promulgation of
17 rules; creating the Sports Pools Fund; stating
17 purpose; establishing funding procedures; requiring a
18 certain appropriation; repealing 3A O.S. 2021,
18 Section 735, which relates to prohibition of other
19 Class III gaming; providing for codification; and
19 providing an effective date.
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22 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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Req. No. 1232 Page 1
1 SECTION 1. AMENDATORY 3A O.S. 2021, Section 703, as
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2 amended by Section 1, Chapter 443, O.S.L. 2024 (3A O.S. Supp. 2024,
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3 Section 703), is amended to read as follows:
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4 Section 703. As used in the Oklahoma Education Lottery Act:
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5 1. "Administrative expenses" means operating expenses,
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6 excluding amounts set aside for prizes, regardless of whether such
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7 prizes are claimed;
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8 2. "Board" means the board of trustees of the Oklahoma Lottery
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9 Commission;
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10 3. "Capital outlay projects" means the acquisition,
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11 construction, installation, modification, renovation, repair,
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12 extension, renewal, replacement, or rehabilitation of land,
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13 interests in land, buildings, structures, facilities, or other
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14 improvements and the acquisition, installation, modification,
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15 renovation, repair, extension, renewal, replacement, rehabilitation,
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16 or furnishing of fixtures, machinery, equipment, computers,
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17 software, laboratories, furniture, textbooks, and reference material
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18 or other property of any nature whatsoever used on, in, or in
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19 connection with educational facilities;
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20 4. "Commission" means the Oklahoma Lottery Commission;
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21 5. "Educational facilities" means land, structures, and
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22 buildings owned or operated by and through the Oklahoma State
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23 Regents for Higher Education, the State Board of Education, the
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24 Oklahoma Department of Career and Technology Education, or by any
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Req. No. 1232 Page 2
1 school district within this state. A public road or highway leading
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2 to an educational facility shall not be considered an educational
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3 facility;
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4 6. "Executive director" means the chief executive officer and
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5 administrator of the Oklahoma Lottery Commission;
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6 7. "Gross proceeds" means all revenue derived from the sale of
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7 lottery tickets or shares and all other monies derived from the
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8 lottery;
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9 8. "Instant ticket" means a lottery ticket that requires the
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10 player to remove a coating to determine if a prize has been won;
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11 9. "Lottery", "lotteries", "lottery game", or "lottery games"
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12 means an activity conducted by the Commission under the Oklahoma
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13 Education Lottery Act through which prizes are awarded or
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14 distributed by chance among persons who have paid for a chance or
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15 other opportunity to receive a prize, including, but not limited to,
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16 instant tickets and on-line online games, but excluding charity
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17 bingo and games conducted pursuant to the Oklahoma Charity Games
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18 Act, poker, blackjack, slot machines, pulltab machines, card games,
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19 dice, dominos, roulette wheels, or other similar forms of gambling,
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20 or electronic or video forms of these gambling activities, or games
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21 where winners are determined by the outcome of a sports contest, or
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22 pari-mutuel betting conducted pursuant to the Oklahoma Horse Racing
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23 Act;
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1 10. "Major procurement contract" means any gaming product or
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2 service costing in excess of Twenty-five Thousand Dollars
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3 ($25,000.00), including, but not limited to, major advertising
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4 contracts, annuity contracts, prize payment agreements, consulting
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5 services, equipment, tickets, and other products and services unique
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6 to the Oklahoma lottery, but not including materials, supplies,
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7 equipment, and services common to the ordinary operations of the
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8 Commission;
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9 11. "Member" or "members" means a trustee or trustees of the
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10 board of trustees of the Oklahoma Lottery Commission;
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11 12. "Member of a minority" means an individual who is a member
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12 of a race which comprises less than fifty percent (50%) of the total
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13 population of Oklahoma;
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14 13. "Minority business" means any business which is owned by:
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15 a. an individual who is a member of a minority who
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16 reports as the personal income of the individual for
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17 Oklahoma income tax purposes the income of the
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18 business,
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19 b. a partnership in which a majority of the ownership
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20 interest is owned by one or more members of a minority
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21 who report as their personal income for Oklahoma
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22 income tax purposes more than fifty percent (50%) of
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23 the income of the partnership, or
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Req. No. 1232 Page 4
1 c. a corporation organized under the laws of this state
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2 in which a majority of the common stock is owned by
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3 one or more members of a minority who report as their
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4 personal income for Oklahoma income tax purposes more
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5 than fifty percent (50%) of the distributed earnings
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6 of the corporation;
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7 14. "Net proceeds" means all revenue derived from the sale of
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8 lottery tickets or shares and all other monies derived from the
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9 lottery less operating expenses;
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10 15. "On-line "Online games" means a game where tickets or
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11 shares are purchased through a network of computer terminals located
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12 at retail outlets, and such terminals are linked to a central
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13 computer that records the purchases;
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14 16. "Operating expenses" means all costs of doing business,
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15 including, but not limited to, prizes, commissions, and other
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16 compensation paid to retailers, advertising and marketing costs,
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17 personnel costs, capital costs, administration, and operation of the
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18 Commission and the lottery, and other operating costs;
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19 17. "Pari-mutuel betting" means the pari-mutuel system of
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20 wagering as defined in Section 200.1 of this title. Such term shall
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21 not include a lottery game which may be predicated on a horse-racing
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22 scheme that does not involve actual track events or traditional
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23 lottery games which may involve the distribution of winnings by
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24 pools;
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1 18. "Person" means any individual, corporation, partnership,
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2 unincorporated association, limited liability company, or other
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3 legal entity;
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4 19. "Retailer" means a person who sells lottery tickets or
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5 shares on behalf of the Commission pursuant to a contract;
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6 20. "Share" means any intangible evidence of participation in a
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7 lottery game;
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8 21. "Sports pools" means any in-person wagering and wagering
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9 conducted on a mobile device on the outcome of sporting events or
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10 other events, other than horse or other animal races;
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11 22. "Sports pools retailer" means any licensed in-person
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12 establishment or Internet-based application that allows for an
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13 individual to wager on sports pools;
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14 23. "Ticket" means any tangible evidence issued by the lottery
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15 to provide participation in a lottery game; and
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16 22. 24. "Vendor" means a person who provides or proposes to
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17 provide goods or services to the Commission pursuant to a major
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18 procurement contract, but does not include an employee of the
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19 Commission, a retailer, or a state agency or instrumentality
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20 thereof. Such term does not include any corporation whose shares
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21 are publicly traded and which is the parent company of the
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22 contracting party in a major procurement contract.
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23 SECTION 2. AMENDATORY 3A O.S. 2021, Section 709, is
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24 amended to read as follows:
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Req. No. 1232 Page 6
1 Section 709. A. The Oklahoma Lottery Commission shall have any
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2 and all powers necessary or convenient to its usefulness in carrying
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3 out and effectuating the purposes and provisions of the Oklahoma
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4 Education Lottery Act which are not in conflict with the Oklahoma
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5 Constitution and laws of this state including, but not limited to,
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6 the following:
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7 1. To sue and be sued in contract, equity, mandamus, and
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8 similar actions in its own name and to complain and defend in all
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9 courts;
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10 2. To adopt and alter a seal;
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11 3. To hold copyrights, trademarks, and service marks and
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12 enforce its rights with respect thereto;
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13 4. To acquire or lease real property and make improvements
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14 thereon and acquire by lease or by purchase personal property,
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15 including, but not limited to, computers and intangible property,
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16 including, but not limited to, computer programs, systems, and
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17 software;
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18 5. To enter into contracts to incur debt in its own name and
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19 enter into financing agreements with the state, agencies or
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20 instrumentalities of the state, or with any commercial financial
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21 institution or credit provider as provided in Section 732 of this
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22 title;
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23 6. To select and contract with vendors and retailers;
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Req. No. 1232 Page 7
1 7. To enter into contracts or agreements with state or local
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2 law enforcement agencies for the performance of law enforcement,
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3 background investigations, and security checks;
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4 8. To administer oaths, take depositions, issue subpoenas, and
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5 compel the attendance of witnesses and the production of books,
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6 papers, documents, and other evidence relative to any investigation
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7 or proceeding conducted by the Commission;
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8 9. To enter into contracts of any and all types on such terms
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9 and conditions as the Commission may determine;
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10 10. To advertise and promote the lottery and lottery games.
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11 None of the advertisement and promotion for games and products
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12 offered by the Oklahoma Lottery allowed by this paragraph shall
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13 involve children under the age of eighteen (18) in any manner;
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14 11. To inform the public about Oklahoma Lottery Commission
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15 contributions to Oklahoma education programs; and
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16 12. To act as a retailer, to conduct promotions which involve
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17 the dispensing of lottery tickets or shares, and to establish and
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18 operate a sales facility to sell lottery tickets or shares and any
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19 related merchandise.
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20 B. The board of trustees of the Oklahoma Lottery Commission
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21 shall have any and all powers necessary or convenient to its
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22 usefulness in carrying out and effectuating the purposes and
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23 provisions of the Oklahoma Education Lottery Act which are not in
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Req. No. 1232 Page 8
1 conflict with the Oklahoma Constitution and laws of this state
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2 including, but not limited to, the following:
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3 1. To adopt, amend, and repeal policies and procedures and to
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4 promulgate rules for the regulation of its affairs and the conduct
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5 of its business, to prescribe the duties of officers of the board,
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6 and to perform such other duties as may be required by law. In the
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7 promulgation of rules, the board shall be subject to the
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8 Administrative Procedures Act;
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9 2. To procure insurance;
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10 3. To initiate, supervise, and administer the operation of the
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11 lottery in accordance with the provisions of the Oklahoma Education
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12 Lottery Act and rules, policies, and procedures adopted pursuant
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13 thereto;
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14 4. To enter into written agreements with one or more other
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15 states or sovereigns for the operation, participation in marketing,
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16 and promotion of a joint lottery or joint lottery games. Such an
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17 agreement may be entered into with a federally recognized Indian
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18 tribe only if a cooperative agreement authorizing the Commission to
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19 do so has been entered into by the Governor and such a tribe and has
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20 been further approved by the Joint Committee on State-Tribal
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21 Relations pursuant to the provisions of Section 1221 et seq. of
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22 Title 74 of the Oklahoma Statutes;
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23 5. To direct the executive director to conduct or have
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24 conducted such market research as is necessary or appropriate, which
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Req. No. 1232 Page 9
1 may include an analysis of the demographic characteristics of the
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2 players of each lottery game and an analysis of advertising,
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3 promotion, public relations, incentives, and other aspects of
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4 communication; and
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5 6. To adopt and amend such rules, policies, and procedures as
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6 necessary to implement its powers and duties, organize and operate
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7 the Commission, regulate the conduct of lottery games in general,
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8 and any other matters necessary or desirable for the efficient and
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9 effective operation of the lottery or the convenience of the public;
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10 7. To enter into written agreements with one or more other
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11 states or sovereigns for the operation, participation in marketing,
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12 and promotion of sports pools. Such an agreement may be entered
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13 into with a federally recognized Indian tribe for in-person sports
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14 pool games only if a cooperative agreement authorizing the
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15 Commission to do so has been entered into by the Governor and such a
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16 tribe and has been further approved by the Joint Committee on State-
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17 Tribal Relations pursuant to the provisions of Section 1221 et seq.
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18 of Title 74 of the Oklahoma Statutes; and
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19 8. To adopt and amend such rules, policies, and procedures as
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20 necessary to implement its powers and duties, organize and operate
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21 the Commission, regulate the conduct of sports pools in general, and
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22 any other matters necessary or desirable for the efficient and
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23 effective operation of the sports pools or the convenience of the
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24 public.
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Req. No. 1232 Page 10
1 C. The powers enumerated in subsections A and B of this section
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2 are cumulative of and in addition to those powers enumerated
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3 elsewhere in the Oklahoma Education Lottery Act, and no such powers
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4 limit or restrict any other powers of the Oklahoma Lottery
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5 Commission or the board of trustees.
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6 SECTION 3. NEW LAW A new section of law to be codified
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7 in the Oklahoma Statutes as Section 713.1A of Title 3A, unless there
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8 is created a duplication in numbering, reads as follows:
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9 There is hereby created in the State Treasury a fund for the
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10 Oklahoma Lottery Commission to be designated the "Sports Pools
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11 Fund". The fund shall be a continuing fund, not subject to fiscal
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12 year limitations, and shall consist of all monies received by the
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13 Commission from net revenue received from sports pools wagering and
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14 license fees collected pursuant to Section 4 of this act. All
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15 monies accruing to the credit of the fund shall be appropriated at
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16 the discretion of the Legislature for the purpose of funding
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17 gambling addiction programs, common education, and administrative
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18 costs associated with implementing this act; provided, an
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19 appropriation from the fund no less than One Million Dollars
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20 ($1,000,000.00) shall be made to the Department of Mental Health and
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21 Substance Abuse Services for the purpose of treating individuals who
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22 may struggle with gambling addiction.
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1 SECTION 4. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 717.1 of Title 3A, unless there
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3 is created a duplication in numbering, reads as follows:
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4 A. The board of trustees of the Oklahoma Lottery Commission
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5 shall develop a list of objective criteria upon which the
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6 qualification of a licensed sports pools retailer, as defined in
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7 Section 703 of Title 3A of the Oklahoma Statutes, shall be based.
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8 In developing these criteria, the board shall consider such factors
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9 as the financial responsibility of the applicant, security of the
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10 place of business or activity of the applicant, accessibility to the
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11 public, integrity, and reputation. The board shall not consider
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12 political affiliation, activities, or contributions to political
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13 committees or candidates for any public office. The criteria shall
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14 include, but not be limited to, the following:
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15 1. The applicant shall be current in filing all applicable tax
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16 returns and in payment of all taxes, interest, and penalties owed on
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17 state or federal taxes, excluding items under formal appeal pursuant
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18 to applicable statutes;
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19 2. No person, partnership, unincorporated association,
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20 corporation, or other business entity or principal, officer, or
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21 director of a corporation or other business entity shall be selected
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22 as a licensed sports pools retailer who:
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23 a. has been convicted of or is awaiting sentencing on a
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24 plea of guilty or nolo contendere to a criminal
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Req. No. 1232 Page 12
1 offense related to the security or integrity of the
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2 lottery in this or any other jurisdiction,
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3 b. has been convicted of or is awaiting sentencing on a
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4 plea of guilty or nolo contendere to any illegal
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5 gambling activity, false statements, false swearing,
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6 or perjury in this or any other jurisdiction,
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7 c. has been convicted of or is awaiting sentencing on a
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8 plea of guilty or nolo contendere to any crime
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9 punishable by more than one (1) year of imprisonment
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10 or a fine more than One Thousand Dollars ($1,000.00)
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11 or both, unless the civil rights of the person have
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12 been restored and at least five (5) years have elapsed
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13 from the date of the completion of the sentence
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14 without a subsequent conviction of a crime described
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15 in this subparagraph,
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16 d. has been found to have violated the provisions of the
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17 Oklahoma Education Lottery Act or any rule, policy, or
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18 procedure of the Commission unless either ten (10)
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19 years have passed since the violation or the board
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20 finds the violation both minor and unintentional in
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21 nature,
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22 e. is a vendor or any employee or agent of any vendor
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23 doing business with the Commission,
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1 f. resides in the same household as the executive
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2 director, any board member, or any employee of the
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3 Commission, or
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4 g. has made a statement of material fact to the
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5 Commission knowing such statement to be false;
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6 3. Any sports pools retailer contract executed pursuant to this
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7 section may, for good cause, be suspended, revoked, or terminated by
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8 the executive director or designee if the retailer is found to have
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9 violated any provisions of the Oklahoma Education Lottery Act or
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10 objective criteria established by the board. Review of such
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11 activities shall be in accordance with the procedures outlined in
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12 the Oklahoma Education Lottery Act and shall not be subject to the
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13 Administrative Procedures Act; and
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14 4. All sports pools retailer contracts may be renewable
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15 annually in the discretion of the Commission unless sooner canceled
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16 or terminated.
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17 B. Licenses issued by the Oklahoma Lottery Commission for
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18 sports pools retailers shall be as follows:
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19 1. For in-person wagering, fifteen percent (15%) of the
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20 adjusted gross revenues received in a calendar year from the play of
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21 sports pools; and
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22 2. For wagering conducted on a mobile device, the following:
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Req. No. 1232 Page 14
1 a. an initial fee of Five Hundred Thousand Dollars
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2 ($500,000.00) with an annual fee of One Hundred
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3 Thousand Dollars ($100,000.00), and
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4 b. twenty percent (20%) of the adjusted gross revenues
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5 received in a calendar year from the play of sports
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6 pools.
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7 C. To ensure the financial integrity of sports pools, the
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8 Oklahoma Lottery Commission through its board of trustees shall:
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9 1. Electronically submit annual reports to the Governor, State
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10 Auditor and Inspector, Oklahoma State Bureau of Investigation, and
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11 Attorney General, disclosing the total sports pools revenues, prize
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12 disbursements, operating expenses, and administrative expenses of
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13 the Commission. The annual report shall additionally describe the
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14 organizational structure of the Commission and summarize the
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15 functions performed by each organizational division within the
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16 Commission;
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17 2. Adopt a system of internal audits; and
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18 3. Maintain weekly or more frequent records of lottery
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19 transactions, including the distribution of tickets or shares to
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20 retailers, revenues received, claims for prizes, prizes paid, prizes
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21 forfeited, and other financial transactions of the Commission.
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22 D. Notwithstanding the provisions of Sections 941 through 988
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23 of Title 21 of the Oklahoma Statutes, the conducting of and
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Req. No. 1232 Page 15
1 participation in any game authorized pursuant to this section is
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2 lawful when played pursuant to this section.
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3 E. The board of trustees of the Oklahoma Lottery Commission
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4 shall promulgate any rules necessary for the implementation of
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5 sports pool wagering in this state.
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6 SECTION 5. REPEALER 3A O.S. 2021, Section 735, is hereby
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7 repealed.
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8 SECTION 6. This act shall become effective November 1, 2025.
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10 60-1-1232 CAD 12/30/2024 12:21:53 PM
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Req. No. 1232 Page 16Every fact on this page links to its source, starting with the official bill record.