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South Dakota Eyes Expansion of Sports Betting with New Proposal

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dani3839

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In a new legislative push, South Dakota lawmakers have introduced Senate Joint Resolution 507, aiming to
amend the state constitution to expand Sports Betting beyond its current limitations. The proposed amendment
would allow for mobile and electronic sports wagering, providing South Dakotans the option to place bets on sport
s from virtually anywhere within the state. This bill, if passed and approved by voters, could significantly alter the state’s gaming landscape.

Broadening gambling horizons in South Dakota:

As it stands, South Dakota has specific laws regulating gambling within the state. The South Dakota Constitution
restricts the legislature from legalizing most games of chance, lotteries, or similar gambling activities, except for
certain charitable, veterans, and religious organizations. The law does allow for state-run lotteries and video gambling,
but with tight regulations on private ownership of such machines. Additionally, games such as roulette, keno, craps, and
slot machines are legal within Deadwood, the state’s historic gaming hub.

The proposed amendment, spearheaded by Sen. Steve Kolbeck, would expand these parameters to include
mobile and electronic platforms for Sports Betting. These platforms, however, would still be required to operate
in partnership with a licensed casino, and all betting servers must be physically located within Deadwood’s city limits.
This ensures that while the scope of Sports Betting is broadened, the activity remains under strict regulatory oversight
within the state’s boundaries.

This new resolution also outlines a clear plan for how the tax revenues generated from mobile and electronic sports
betting would be allocated. According to NEXT.io, a key aspect of the proposal mandates that 90% of the tax revenue
from these online wagers would be used to provide property tax relief across South Dakota. Meanwhile, revenue from
traditional casino games like roulette and slot machines in Deadwood would continue to support the city’s Historic Restoration and Preservation Fund.

The proposed amendment would be placed on the 2026 general election ballot for voter approval, potentially paving
the way for South Dakota to become more competitive with its neighboring states, many of which already allow online Sports Betting.

Previous attempts at legalizing online Sports Betting fall short:
 

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