South Dakota Senate Approves Online Sports Betting Resolution

• The South Dakota Senate approved SJR 504, a resolution to approve online sports betting in the state
• Online sports betting revenues will be earmarked for property tax relief
• The bill will place an online sports betting referendum question on the November general election ballot

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A South Dakota resolution to approve online sports betting in the Mount Rushmore State has taken a a big step forward to approval.

The South Dakota Senate yesterday approved Sen. Casey Crabtree (R-8) and Rep. Greg Jamison’s (R-12) SJR 504, a resolution to place an online sports betting question on the November general election ballot, by a 23-10 vote.

The resolution now moves to the South Dakota House of Representatives. If now approved by the House, South Dakota voters will then have the final say on legalization.

Property Tax Relief is Name of the Game

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.

Crabtree noted that more than 55,000 online sports betting accounts are already registered in the state. Constituents want this new form of gaming, he said, and voters should have the final say in November.

“The proposal in front of you is about property tax relief. It ultimately puts more money in the pockets of hard working South Dakotans,” he said.

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 the November general election ballot.

Details on license numbers or sports betting tax rates are not included in the bill. However, the legislation 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%.

If approved by voters, Crabtree said the state’s online sports betting framework will be crafted during the next legislative session.

Worries Over Addiction

While the bill was approved, several in the Senate spoke up with worries over increased addiction rates in the state.

Sen. Joy Hohn (R-9) presented data to the Senate body, which showcased South Dakota’s gambling addiction rate. Of the five most gambling addicted states in the country, Hohn reported that South Dakota has the second highest rate of addiction.

“Is this really how we want to fund our government?” Hohn asked.

Sen. Kevin D. Jensen (R-16) expressed doubt that the legislative body will be able to figure out a way to use the new sports betting revenues to actually reduce the property tax rate in South Dakota.

“We’ll get some money, but it makes me sad we’re going to collect this money off the back of people that have problems, have addictions…We’re going to collect this money and then somehow we are going to come up with a way to reduce property taxes when we can’t figure it out right now with it in our lap? I don’t see us coming up with a solution in the next year. I’ll be voting no,” he said.