Senate Bill No. 125 amends Oklahoma law regarding state-tribal gaming compacts by updating the terminology from "model tribal-state compact" to "Model Tribal Gaming Compact." The bill establishes that at least four tribes must participate for the compacts to be licensed by the Oklahoma Horse Racing Commission and clarifies that authorized gaming activities are lawful under the State-Tribal Gaming Act, exempt from criminal penalties. It also specifies the number of player terminals that organization licensees can operate based on county populations.

Additionally, the bill introduces provisions for tribes to offer sports pools, allowing in-person and mobile device wagering on sporting events. Tribes that choose to implement this must execute a supplement to their existing compact, which includes a tiered fee structure based on revenues from sports pools. The fees start at 5% for the first $5 million in monthly net win and increase to 7% for revenues beyond that. The bill ensures that the operation of sports pools is lawful under the existing compact and requires federal approval for the supplement. It does not authorize new forms of gaming or additional electronic gaming in Oklahoma and is set to take effect on November 1, 2025.