South Dakota Online Sports Betting Chances Take Step Back

• A South Dakota House Committee rejected a joint resolution calling for a vote in November to legalize online sports betting
• House State Affairs Committee voted down SJR 504, a resolution to approve online sports betting in the state
• The committee voted to defer the resolution to the last day of the session

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South Dakota online sports betting legalization odds took a big step back in the Mount Rushmore State this week.

The South Dakota House State Affairs Committee rejected Senate-approved SJR 504, a resolution to place an online sports betting question on the November general election ballot, by a 7-6 vote.

The House State Affairs Committee then voted to defer the resolution to the final day of the South Dakota legislative session.

Likely Need Changes to Pass

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

If the measure had been approved, it would have placed an amendment question on the November general election ballot for the South Dakota constitution to legalize online sports betting.

Committee Member Rep. Tim Reisch (R-8) urged approval of the measure, noting that the practice is going on now in the state whether it’s legal or not.

“Sports gambling is going on now. The bill doesn’t do anything unless the people support it at the ballot box. To me, it’s not an area I had familiarity with, but we’re missing out on a source of revenue, people are betting on it now, let’s let the people decide one way or the other,” he said.

However, Committee Chair Rep. Scott Odenbach (R-31) explained his reasoning to vote down the resolution. While he approves of destination gambling in Deadwood, which he described as “good clean fun,” he said online sports betting would likely lead the state down a bad road.

“I think this measure, with every bit of testimony I’ve heard, runs the risk of putting us down the path of an addictive form of gambling,” he said.

With the deferral, the state’s online sports betting chances are now greatly reduced. The approved resolution will likely have to be amended and brought back before the committee if it stands any chance of approval moving forward.

The South Dakota Senate earlier this month approved Sen. Casey Crabtree (R-8) and Rep. Greg Jamison’s (R-12) bill by a 23-10 vote.

Details on license numbers or sports betting tax rates were 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.”

South Dakota Tribes Fear Being Left Out

During the course of the nearly hour-long discussion on the resolution, South Dakota tribal leaders shared concerns over potentially being left out of online sports betting if approved. Frank Star Comes Out, president of the Oglala Sioux Tribe, spoked during the hearing and said the bill should be amended to explicitly include South Dakota tribes in any future online sports betting framework to ensure their inclusion.

Rep. Eric Emery (D-26A) agreed, noting that he voted in favor of the resolution on the promise that South Dakota tribes will be brought into the bill and “made whole.”

“I’m going to support this motion, but will only support it in the fact that I’ll take the proponents word that they will include the tribes in this and make sure the tribes are included and kept whole. The tribes can be brought to the table, and it sounds like you’re willing to make sure they’re brought to the table and included in the discussion,” he said.