In a significant legislative update, Oklahoma has enhanced its ethics framework and modified its wagering tax code. House Bill 3419 and House Bill 4432 have both received final legislative approval and now await the signature of Governor Kevin Stitt, setting new standards for public servant conduct and player tax relief.
Cracking Down on “Insider” Information
HB 3419 significantly expands a 2025 ban on public servants using nonpublic information for financial gain. The new law now includes employees of municipal corporations, counties, and local school boards. Violators face up to five years in prison and $10,000 in fines, along with a permanent bar from holding public office or entering state contracts.
While the bill does not explicitly name prediction markets like Kalshi or Polymarket, lawmakers noted that the surge in popularity of such platforms served as a catalyst for these revamped rules. The statute specifically prohibits:
- Speculating or wagering based on nonpublic information.
- Communicating sensitive data to unauthorized individuals.
- Benefiting family members (including spouses, siblings, and stepchildren) through duty-acquired knowledge.
Tax Relief for Oklahoma Gamblers
Simultaneously, HB 4432 introduces a major shift for taxpayers who report wagering activity. As per the update, tarting in the 2027 tax year, wagering losses will be excluded from Oklahoma’s $17,000 itemized deduction cap. This ensures that residents can fully deduct eligible losses without being restricted by the state’s general deduction ceiling, providing much-needed relief from federal tax reporting pressures.
