The South Dakota Legislature has introduced Senate Joint Resolution 507, which proposes an amendment to the state constitution to allow sports betting through mobile and electronic platforms.
This amendment, if approved by voters in the next general election, would expand existing gaming laws in South Dakota.
Currently, the state constitution prohibits the legislature from authorising games of chance, lotteries, or similar enterprises, with exceptions for certain charitable, veterans, and religious organisations.
The law also allows the state lottery and video games of chance, but restrictions are in place regarding private ownership of lottery games or video gaming machines.
Furthermore, limited gambling activities, including roulette, keno, craps, slot machines, and card games, are permitted within the city limits of Deadwood.
Under the proposed amendment, individuals would be allowed to place bets on sporting events from locations both inside and outside Deadwood using mobile or electronic platforms.
However, these platforms must be operated by or in partnership with a licensed casino, and the servers for these platforms must be physically located within Deadwood’s city limits.
This measure ensures that the expansion of sports betting remains under regulatory control within the state.
Additionally, the resolution specifies how tax revenues from mobile and electronic sports betting would be allocated.
It mandates that 90% of the tax proceeds from this type of wagering must be used for property tax relief or to lower property taxes across South Dakota.
Meanwhile, municipal proceeds from games such as roulette, keno, craps, slot machines, and card games would continue to support the Historic Restoration and Preservation of Deadwood.
If approved, the amendment will be placed on the ballot for voters to decide during the next general election.
Previous attempts fall flat
In recent years, South Dakota has made several attempts to legalise online sports betting, though none have been successful to date. In November 2020, voters approved Constitutional Amendment B, permitting sports wagering within Deadwood’s city limits.
This led to the launch of retail sportsbooks in Deadwood and tribal lands in September 2021.
Since then, efforts to expand sports betting to online platforms have faced challenges.
In February 2022, Senate Joint Resolution 502 (SJR 502) was introduced, aiming to place a measure on the November 2022 ballot to legalise online sports betting statewide.
The resolution narrowly passed the Senate with an 18-17 vote but was subsequently rejected by the House State Affairs Committee in a 10-3 vote, halting its progress.
The following year, in early 2023, House Joint Resolution 5006 (HJR 5006) sought to authorise online sportsbooks in partnership with Deadwood casinos.
The resolution passed the committee stage but was defeated in the House with a 41-28 vote. A significant concern was the potential impact on existing tribal gaming compacts, leading to uncertainty and opposition.
