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 sports 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:

South Dakota has made several attempts in recent years to expand its sports betting laws, with limited success. In November 2020, voters approved Constitutional Amendment B, which permitted retail sports wagering within Deadwood’s city limits. This resulted in the launch of retail sportsbooks in Deadwood and on tribal lands in September 2021. However, efforts to extend sports betting to online platforms have struggled to gain traction.

One of the more recent efforts was Senate Joint Resolution 502 (SJR 502), introduced in February 2022. This resolution sought to put a measure on the November 2022 ballot to allow for statewide online sports betting. While the measure passed the state Senate with a narrow 18-17 vote, it was later rejected by the House State Affairs Committee, halting its progress.

In 2023, another effort, House Joint Resolution 5006 (HJR 5006), attempted to legalize online sports betting in partnership with Deadwood casinos. Although the resolution passed through committee, it was defeated in the House by a 41-28 vote, with one of the major concerns being its potential impact on existing tribal gaming compacts. This ongoing uncertainty about how the expansion of online betting would affect tribal agreements led to significant opposition, stalling the bill once again.

The proposed Senate Joint Resolution 507 reflects ongoing bipartisan interest in broadening the scope of sports betting in South Dakota. The bill is co-sponsored by four lawmakers, including both Republicans and a Democrat. Despite the bipartisan support, concerns about problem gambling and its potential impact remain a significant issue in the ongoing debate. The legislature has previously heard concerns related to the societal impacts of gambling, with some lawmakers worried about its consequences on public health and welfare.

South Dakota is surrounded by states that already allow online sports betting. North Dakota, however, recently rejected a sports betting ballot measure after significant opposition, particularly from university faculty and students. Meanwhile, neighboring states like Iowa, Nebraska, Montana, and Wyoming have successfully implemented online sports betting. Minnesota is also reconsidering the issue, with the possibility of introducing a ballot referendum soon. These neighboring states’ progress highlights the competitive nature of the issue and the pressure South Dakota may feel to act.

Despite these challenges, the passage of Senate Joint Resolution 507 would represent a significant step forward for South Dakota’s sports betting industry. If approved, it would be placed on the 2026 general election ballot, where voters will have the final say on whether the state should expand its sports betting laws.