Oklahoma is losing out on millions in sports betting revenue to other states and illegal operators, a Senate panel was told Thursday.

Sports betting is legal in 39 states, creates about 2 million jobs and has about a $325 billion dollar impact, said Frank Sizemore, who is with the Sports Betting Alliance, which is made up of five companies.

His comments were made during a Senate interim study by Sen. Bill Coleman, R-Ponca City, that brought many of the key players together, including an executive with the Oklahoma City Thunder NBA team. Lawmakers often use those studies to help craft legislation.

“Sports betting is happening now in the state,” Sizemore said. “It is just on illegal platforms and with bookies down the street.” Illegal markets have no taxes, accountability or regulation, Sizemore said.

“Weakening the illegal market strengthens the legal one,” he said.

States that allow sports betting tax it at an average of about 16%, Sizemore said.

When states have high taxes, those who bet stay in the illegal market, he said.

For years, Oklahoma lawmakers have unsuccessfully sought to legalize sports betting, but faced obstacles, such as setting up a system that complies with gaming compacts that give tribes exclusive rights in exchange for fees. 

The tribes pay the state between 4% and 10% of adjusted gross revenue, said Matthew Morgan, Oklahoma Indian Gaming Association chairman. The organization represents 25 of the 35 tribal governments that offer gaming.