General FAQs
What is the Six Percent Markup Rule?
“No alcoholic beverages…shall be sold at retail for less than a six percent (6%) markup.” 37A O.S., § 3-118. For example, if a retail establishment obtains a case (24 bottles) of beer for $24.00 from a beer distributor - or $1.00 per beer - it may not sell the beer for less than $1.06 per bottle, a six percent markup. Or if a retail store obtains a case (12 bottles) of wine for $120.00 - or $10.00 per bottle - it may not sell the wine for less than $10.60 per bottle.
Are there exceptions to the Six Percent Markup Rule?
Yes. For example, Section 3-118 lists various exceptions to the rule. Some examples include bona fide clearance sales for seasonable merchandise, sales of damaged merchandise, sales upon the final liquidation of a business, and sales for charitable purposes.
Is a license required to sell products (like jam) that contained alcohol that has been “burned out”?
No license is required to sell such a product if alcohol is no longer present.
If alcohol is used in creating a product, an industrial license may be required (see below).
What is a bottle club?
A bottle club is a bar where guests or members bring their own alcoholic beverages and bartenders serve drinks using the guest’s own alcohol. Bottle clubs no longer exist in Oklahoma.
As a business owner, am I responsible for the actions of my employees?
Per 37A O.S., § 2-133, a licensee is responsible for any act or omission of his or her employee in violation of any alcohol law.
Yes, you can! 37A O.S., § 2-140 allows the ABLE Commission to issue personal use permits, which authorize the permit holder to make beer and wine2 for personal use.
2And non-distilled cider.
I want to open a business that will cater alcohol for events. I may sell some snack food on the side, but not much. I want to focus on selling alcohol. May I obtain a caterer license?
It does not sound like you would be eligible to obtain a caterer license. 37A O.S.,
§ 2-113(A)(1) states, “A caterer license may be issued to any person for the purpose of sale, delivery or distribution of alcoholic beverages incidental to the sale or distribution of food on a premises not licensed by the ABLE Commission. For purposes of this section, ‘incidental to the sale or distribution of food’ means food sales constituting at least thirty-five percent (35%) of the caterer’s total combined annual sales. A caterer license shall not be issued to a person whose main purpose is the sale of alcoholic beverages.” (emphasis added).
When a customer chooses to pay with a credit card rather than cash, may I add a fee onto the purchase price in order to pass the expense onto the customer?
No. Under current law, 14A O.S., § 2-417(A) states, "No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card or debit card in lieu of payment by cash, check or similar means."
Note: Effective 11/1/25, 14A O.S., § 2-417(A), has been repealed. Thus, state law no longer prohibits retailers from imposing a surcharge for the use of credit card as payment.
When I ask for identification, some people do not have a driver’s license, but they present other forms of identification. Is this acceptable?
Yes, a State identification card issued pursuant to 47 O.S., § 6-105 or “other generally accepted means of identification” that contains a photograph of the individual, describes the individual as twenty-one (21) years or older, and appears on its face to be valid are acceptable to prove a person’s age.
Am I required to ID anyone who wants to purchase alcohol?
According to Section 2-163, state law and administrative rules cannot require license holders to check identification (ID) cards prior to selling or serving alcoholic beverages to a person. However, license holders may still choose to check and verify a person’s ID prior to selling or serving a person an alcoholic beverage. This does not absolve the license holder from the prohibition of selling or serving alcoholic beverages to a person under twenty-one (21) years of age. ABLE will never issue a citation for failure to check ID, but the agency will fully prosecute any license holder who sells or serves alcoholic beverages to someone under 21.
I want to apply for an employee license, but I have been convicted of a felony. Am I eligible?
It depends. Section 2-148(D)(2) provides that a person with a felony conviction is eligible for an employee license as long as the conviction is not for a violent felony as defined in 57 O.S., § 571.
When employees receive a license, do they need to complete any kind of training?
Yes, employees are required to go through training. Section 2-121(A) states, “As a prerequisite to the issuance of an employee license, not later than fourteen (14) days after initial licensure, the first-time applicant shall be required to have successfully completed a training program conducted by the ABLE Commission, or by another entity approved by the ABLE Commission including an in-house training program conducted by the employer.” You can upload your training documents to your Accela account.
Section 2-121(A) also states, “Proof of training completion shall be made available for inspection by the ABLE Commission at the business location employing the licensee.”
I work at a golf course. May we allow customers to buy alcohol through their monthly dues account?
Although, generally, licensees are not allowed to sell alcohol on credit, 37A O.S., § 6-108(4)(b) states, “[W]hen the holder of a Retail Wine License, Retail Beer License or Mixed Beverage License is a private membership club, marina, golf course or country club that normally charges food, drinks and other purchases to the member's monthly dues account in the regular course of business, in lieu of actual cash payment at the time of purchase, such practice does not constitute the extension of credit.”
I manage a hotel. We have a mixed beverage license. We would like to sell wine in our sundry shop. Are we allowed to do this? Do we need another license?
Yes, you may obtain a retail license in order to sell wine in your sundry shop.
21 years of age or older.
21 years of age or older.
Liquor store: 21 years of age or older.
Grocery or convenience store: 16 years of age or older.
After you have downloaded and completed all required forms, log into the ABLE Commission's online portal to continue the online the application process. Make sure to have all required documents completed and ready for uploading.
Visit the ABLE Commission's online portal for licensing, permitting, and forms submission.
18 years of age or older.
What type of license is needed if alcohol is used for purposes other than consumption, such as an antiseptic, or for scientific or chemical purposes?
In such cases, an industrial license should be used.
I am about to return to Oklahoma after a tour of duty overseas in the military. I have been collecting wines from different countries during my service and I would like to bring them back home with me. I was told that I need a letter from the ABLE Commission. Could you please send a letter?
Under 37A O.S., § 6-101(A)6, you are specifically allowed to import up to 180 liters of alcohol as part of your household goods as military personnel. You do not need written permission from the ABLE Commission to do so.
However, please feel free to download the Military Exemption Letter.
Thank you for your service to our country.
Note: The allowable 180 liters would cover approximately 240 bottles of wine at the typical 750 ml size.
I would like to start a “mobile bar” business and transport the bar to different venues and provide alcohol for events. Are mobile bars allowed in Oklahoma?
No. Mobile bars for the sale of alcohol are not allowed in Oklahoma. This is similar to the question about catering alcohol. Oklahoma does not issue licenses to such businesses. People who organize a private party may buy their own alcohol and serve it to their guests. You may be permitted to provide bar equipment for such events and serve alcohol to guests for free, but you may not sell alcohol to customers.
Can I serve/sell beer, wine, and spirits from my Mobile/Food Truck? What License do I need to apply for?
No, under current Oklahoma law, alcohol beverage licenses are only issued to a permanent physical address that has been approved by the ABLE Commission.
For example, a food truck that moves around a City/County does not have a permanent physical address. There is no license available for a mobile/food truck to serve or sell alcoholic beverages currently.
When was the ABLE Commission created?
The Alcoholic Beverage Control Board was created in 1959, the year that prohibition ended in Oklahoma. In 1984, the Alcoholic Beverage Control Board was abolished and the ABLE Commission was established by Article 28 of the Oklahoma Constitution. The Commission was re-created by statute in 2018 as part of alcohol modernization measures.
Where does the ABLE Commission get its authority to regulate the alcohol industry?
The Oklahoma Statutes, at 37A O.S., § 1-107, give the ABLE Commission the power and the duty to regulate the alcoholic beverage industry.
Are ABLE agents licensed peace officers and can they make arrests?
Yes. All ABLE agents are Oklahoma certified peace officers and “have all the powers and authority of peace officers of this state for the purpose of enforcing the provisions of the Oklahoma Alcoholic Beverage Control Act.” 37A O.S., § 1-109(A). Moreover, ABLE agents are authorized to arrest violators for offenses against the laws of this state committed in the presence of the Director or such agents and inspector, and further, upon the request of a sheriff or another peace officer of this state or any political subdivision thereof, assist in apprehension and arrest of a violator or suspected violator of any of the laws of this state.” 37A. O.S., § 1-109(B). Thus, our agents can and do assist other state and local law enforcement agencies in investigating crimes and arresting suspects.
What gives the ABLE Commission authority to impose penalties for violations of alcoholic beverage laws?
37A O.S., § 2-148(F) states, “The ABLE Commission shall have the authority to promulgate rules to establish a penalty schedule for violations of any provision of the Oklahoma Alcoholic Beverage Control Act or any rule of the ABLE Commission.” Pursuant to that authority, ABLE has established a penalty schedule and imposes penalties pursuant to the schedule. Various penalties are also provided by the Oklahoma Statutes.
How does Oklahoma regulate the alcohol industry?
Oklahoma is an “Open State” that regulates the alcohol industry through a licensing system, as opposed to a “Control State,” where the State has a monopoly on alcohol sales.1
1 The National Alcohol Beverage Control Association lists 18 Control States. Thus, 32 States are Open States.
Where can I find the laws relating to alcohol in Oklahoma?
Such laws are found in Article 28A of the Oklahoma Constitution, Title 37A of the Oklahoma Statutes, and Title 45 of the Oklahoma Administrative Code.
What is the “three-tier system”?
Oklahoma uses a three-tier system. The first tier consists of organizations that produce or manufacture alcoholic beverages, such as brewers, wineries and distillers (who produce spirits). The second tier consists of beer distributors and wine and spirits wholesalers. The third tier consists of retailers. This includes establishments like bars and restaurants, where people enjoy drinks on-site (“on-premise consumption”) and grocery stores, convenience stores, and liquor stores, where alcoholic beverages are purchased for “off-premise consumption.”
Generally, manufacturers/producers may only sell their products to wholesalers/distributors, who then distribute the products to retailers. Only retailers may sell to consumers. (Some exceptions exist, like with brewers who produce beer and sell it at retail and wineries who sell wine at retail.) The idea behind the separate tiers is to ensure that no industry participants can monopolize the entire alcoholic beverage market.
Can I transport a bottle of alcohol that has been opened in my vehicle?
Yes, but the opened container must be “in the rear trunk or rear compartment...or any outside compartment which is not accessible to the driver or any other person in the vehicle while it is in motion,” pursuant to 37 A O.S., § 6-101(A)(7).
The type of license or permit you need will depend on what your business model will be. The Business Application Reference Documents page provides a full list of forms, licenses, and permits.
Is it illegal for anyone under the age of 21 to possess an intoxicating beverage in public?
Yes, it is unlawful for anyone under the age of 21 to even possess an intoxicating beverage in public.
When I apply for a license, do I need to provide proof of liability insurance?
Yes. Section 2-142(B)(6) requires that every applicant for a license must provide proof of liability insurance for bodily injury and property damage.
I am considering opening a bar, but a public school is located just down the road. Is this an issue?
37A O.S., § 2-139 prohibits bars and liquor stores from being located within 300 feet of a public or private school or a church that is regularly used for worship services and religious activities. The 300 feet is measured from the nearest property line of the school to the nearest perimeter wall of the bar. A college, university or church may waive the 300-foot requirement.
May I obtain a retail spirits license as a sole proprietor?
Yes. Article 28A § 4(A) of the Oklahoma Constitution allows two types of business entities to obtain a retail spirits license: a sole proprietor or a partnership.
Can a corporation or an LLC obtain a retail spirits license?
No. This is prohibited by the Oklahoma Constitution. In Article 28A, § 4(A), the Oklahoma Constitution states, “A Retail Spirits License shall not be issued to a corporation, limited liability company or similar business entity…” The Oklahoma Statutes also state, “No retail spirits license shall be issued to a corporation, limited liability company or similar business entity.” 37A O.S., § 2-156(A). The same exclusions apply to wine and spirits wholesalers.
I have a retail spirits license. May I obtain one or two more?
You may obtain a second retail spirits license, but the Oklahoma Constitution prohibits ownership interests in more than two retail spirits licenses.
What about sacramental wine that is used in religious services?
37A O.S., § 3-101(B)(2) provides, “The possession, transportation and dispensation of wine by any authorized representative of any church for the conducting of a bona fide rite or religious ceremony conducted by such church shall not be prohibited by the Oklahoma Alcoholic Beverage Control Act; nor shall such act prevent the sale, shipping or delivery of sacramental wine by any person holding a sacramental wine supplier license issued pursuant to the Oklahoma Alcoholic Beverage Control Act to any religious corporation or society of this state....”
May I sell alcohol to a person who is intoxicated?
No. Selling or furnishing alcoholic beverages to a person who is intoxicated violates the Oklahoma Constitution and state statute. Oklahoma Constitution Article 28A,
§ 5(A)(3); see also 37A O.S., § 2-148(D)(1).
Are retail establishments required to post signage about sales to minors?
Yes. Pursuant to 63 O.S., § 1-229.29(A), “Every person who sells alcoholic beverages at retail shall post…a sign stating the following: ‘IT’S THE LAW. WE DO NOT SELL ALCOHOLIC BEVERAGES TO PERSONS UNDER 21 YEARS OF AGE.’”
I received a citation for a violation. Will my license be suspended or revoked?
Although the ABLE Commission may suspend or revoke a license for certain violations, it is not typical to have your license suspended or revoked for one violation. It is more typical to have a monetary penalty imposed.
What if I commit multiple violations over time?
According to 37A O.S., § 2-148(F), penalties for violations shall be increasingly severe for each violation. If you commit multiple violations over time, your license could be suspended for some time, or even revoked, or a higher monetary penalty may be imposed. But, pursuant to Section 2-148(F), “[F]or a fourth major violation by a licensee within a twenty-four-month period, the penalty shall be mandatory revocation of license.” (emphasis added).
What happens if I do not pay the fine?
Pursuant to 37A O.S., § 2-148(H), “The failure of any licensee to pay a fine or serve a suspension imposed by the ABLE Commission or the Tax Commission shall result in the revocation of the license of the licensee.”
Does ABLE regulate non-alcoholic beverages?
No, ABLE does not regulate non-alcoholic beverages.
What percentage of alcohol by volume do beverages need to be considered beer, wine or spirits in Oklahoma?
By definition, to be considered as beer, wine or spirits in Oklahoma, beverages must contain more than .50% alcohol by volume. See 37A O.S., §§ 1-103(5), (65), and (71). Beverages containing .50% alcohol by volume or less do not meet the definition of alcoholic beverages in Oklahoma.
What is the highest alcohol content allowed for retail sales of beer?
Fifteen percent. 37A O.S., § 2-109(C). But such a high alcohol volume would be unusual. An average beer would contain four to six percent alcohol by volume.
What about retail wine?
Wine is the same – 15%. 37A O.S., § 2-109(B). Wine usually contains more alcohol by volume than beer, averaging approximately 11 to 13 percent.
What is an inducement? Are inducements allowed in Oklahoma?
An inducement provides an incentive to purchase alcoholic beverages. Examples of inducements include certain discounts, free merchandise, gifts and prizes, retailer rebates, and instantly redeemable coupons. Inducements are generally prohibited, but certain exceptions are allowed.
When most people think of inducements, they think of inducements being offered directly to consumers in retail sales transactions. In this context, 37A O.S., § 6-108(5) states, “No holder of a Retail Wine License or a Retail Beer License shall…[o]ffer or furnish any prize, premium, gift or similar inducement to a consumer in connection with the sale of beer or wine...” Section 6-103(A)(6) contains similar prohibitions relating to the sale of retail spirits to consumers.
Another context in which inducements occur is in the sale by businesses in the
first tier (brewers, wineries and distillers) to businesses in the second tier (distributors and wholesalers). It can also occur in sales to the third tier (retail). Section 3-123(A)(2) states, “It shall be unlawful for any person privileged to sell alcoholic beverages to wholesalers, beer distributors or retailers…[t]o grant, directly or indirectly, any discount, rebate, free goods, allowance or other inducement.” The Oklahoma Constitution also provides, “It shall be unlawful for any wholesaler to grant to any member of the retail tier, directly or indirectly, any credit, loan, discount, rebate, free goods, allowance or other inducement not otherwise expressly permitted by state law.” Oklahoma Constitution Article 28A, § 2(A)(5).
Article 28A, § 2(A)(5) Oklahoma Constitution
Section 3-123(D) provides an expansive definition of inducement. It states:
“[I]nducement" means directly or indirectly offering, selling, trading, giving or furnishing any discount, free goods, electronic or nonelectronic refrigerated equipment, barrels, tubs, fixtures, dispensing equipment, outdoor electric or nonelectric advertising structure displaying the retailer's name, permanent shelving, supplies, gifts, prizes, instantly redeemable coupons, premiums, retailer rebates, services of any employee including but not limited to affixing price labels or tags, routinely stocking product on shelves other than the stocking of cold boxes, paying a third party for entering product and price information into a retailer's computer system, portal, website, spreadsheet or third-party system, handling product that was not sold to the retailer by the licensee, paying a slotting fee, selling on consignment, operating a retailer's cash register, conducting janitorial services, providing decorations, samples of alcoholic beverages, personal property or other inducement or thing of value to any retail spirit, retail beer, retail wine, beer and wine, mixed beverage, caterer, bottle club or special event licensee, wine and spirits wholesaler or beer distributor, their agents or employees.”
I own a brewery. May a brewery offer rebates, or are they considered an impermissible inducement?
As noted above, Oklahoma’s inducement laws allow for exceptions. This is a good example of an exception that applies to breweries and certain other businesses in the beer industry. Section 3-123(E) states: “It shall not be deemed an inducement for a brewer…to voluntarily take the following merchandising actions with the permission of the retail licensee:
…11. “Provide mail-in rebates for beer…funded by the brewer and redeemed by the brewer...for a…rebate on the beer…;
…18. “Offer…refunds…directly to consumers….”
Thus, breweries may offer rebates in this context.
Can you provide another example of exceptions to inducement laws?
37A O.S., § 6-108(5), which was quoted above, lists certain prohibited inducements, but then states certain exceptions: “…[G]oods or merchandise included by the manufacturer in packaging with beer or wine or for packaging with beer or wine shall not be included in this prohibition, nor shall a retail wine or retail beer license holder selling wine or beer at a multiunit discount be included in this prohibition….”
