South Dakota Online Sports Betting Resolution Heads to Senate Floor

• A Senate resolution to legalize online sports betting has been moved out of committee
• The Senate taxation committee moved the bill to the Senate floor
• The bill will place an online sports betting referendum question on the next South Dakota general election ballot

South Dakota lawmakers will evaluate a resolution to allow voters to potentially expand the state’s sports betting market.

The Senate Taxation Committee moved Sen. Casey Crabtree (R-8) and Rep. Greg Jamison’s (R-12) SJR 504, a resolution to place an online sports betting question on an upcoming election ballot, but a 4-3 vote. The joint resolution will now head to the Senate floor for a potential vote.

If the bill is approved by the Senate and House, South Dakota voters will have the final say on online sports betting legalization in a future general election.

Expanding Sports Betting

South Dakota currently allows in-person sports betting within the city limits of Deadwood and at existing tribal casinos in the state. SJR 504 will legalize online sports betting throughout South Dakota if approved by state voters.

“It is lawful for the Legislature to authorize by law wagering on sporting events by individuals located within and outside the city limits of Deadwood, by means of a mobile or electronic platform, provided the mobile or electronic platform is offered by or in partnership with a licensed casino and the platform has its servers located within the city limits of Deadwood.”

If signed into law, the resolution will place an amendment question for the South Dakota constitution to legalize online sports betting through the Mount Rushmore State. The amendment question will appear on a general election ballot.

Details on license numbers or sports betting tax rates are not provided, but the bill earmarks 90% of online sports betting tax revenues to be used “for property tax relief or to reduce property taxes in the state.” The remaining 10% will be used for the “historic restoration and preservation of Deadwood.”

Retail sports betting is currently taxed at a rate of 9%.

Retail Sports Betting Approved by Voters

South Dakota voters approved in-person and retail sports betting in Deadwood during the state’s 2020 general election.

Voters widely approved Constitutional Amendment B in the election, with 239,620 voters approving the measure compared with 170,191 who voted against it. According to election results, more than 58% of voters approved the amendment.

All in-person sports betting revenue is dedicated to the “historic restoration and preservation” of Deadwood.