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Sports betting simplified
South Dakota sports betting law allows casinos in Deadwood to operate retail sportsbooks for visitors 21 and older. The first South Dakota sportsbooks opened after voters approved a ballot measure authorizing sports wagering within Deadwood city limits. Online sports betting isn’t yet legal in South Dakota, but some sportsbooks offer mobile apps that guests can use to place wagers from anywhere on casino property. Other South Dakota online betting options include pari-mutuel horse wagering and daily fantasy sports apps.
State of South Dakota Sports Betting Overview
South Dakota sports betting apps allow bettors to skip the line by placing wagers from their mobile devices while located within licensed casinos.
Full-fledged online sports betting is prohibited in South Dakota, but some lawmakers are interested in changing that.
In early 2022, lawmakers introduced SJR 502, calling for another referendum during the next general election. The South Dakota Senate approved SJR 502 by a thin margin in February 2022, but the bill died in the House.
Undeterred, South Dakota online sports betting proponents took up the measure once again in early 2023 by introducing HJR 5006. The bill survived a close committee vote shortly after its introduction but failed on a House vote of 41-28 against. In a debate before the vote, HJR 5006 supporters couldn’t answer how the measure would impact the gaming compacts several tribes have with the state.
As a result, South Dakota online sports betting remains prohibited by state law.
After voters approved sports betting in South Dakota, the legislature passed SB 44 to legalize and regulate sportsbooks in Deadwood. The law covers a lot of ground, but the highlights include a minimum age of 21 to bet on sports. Deadwood Casinos may apply for licenses to operate retail sportsbooks on-premises. South Dakota sportsbooks may offer mobile betting, but the law clearly states customers may only place wagers from within licensed casinos. Casinos that wish to operate sportsbooks pay a $2,000 initial licensing fee and a $2,000 annual fee after that. Sportsbooks may accept wagers on professional, collegiate, and international sporting events. South Dakota sportsbooks may not accept wagers on minor league sports or the performances of individual athletes in college sporting events. Sportsbooks may not accept wagers on games involving South Dakota college teams. The South Dakota Commission on Gaming retains the authority to adopt additional rules as needed to regulate sports betting.
Additional regulations adopted by the Commission address the finer details, such as integrity monitoring requirements, anti-money laundering standards, and various consumer protection rules.
The South Dakota legislature has also considered expanding sports betting beyond Deadwood. In February 2023, Sen. Ryan Maher introduced SB 209 to authorize self-serve betting kiosks throughout South Dakota at businesses with liquor licenses.
State of South Dakota Sports Betting Timeline
2023: International Gaming Technology (IGT) signed a five-year contract extension with the South Dakota Lottery in November.
South Dakota sports betting handle hit a record high with $1,021,660 in October.
2022: A ballot proposal that could allow South Dakotans to approve mobile sports betting in November 2022 was passed by the Senate in February. It faced an uphill battle in the House after barely escaping the Senate.
A House committee voted against the proposal, keeping South Dakota sports betting limited to Deadwood casinos.
SJR 502, which proposed an amendment to the Constitution of South Dakota to provide online sports betting, passed the Senate but came up short in the House before the end of the 2022 legislative session.
2021: With voter wishes behind them, legislators passed legislation legalizing sports betting in Deadwood.
With Gov. Kristi Noem‘s signature, the state’s regulators worked quickly on industry rules. A first set was approved in June, while a second, more detailed set received legislative approval on Aug. 2.
A ceremonial first sports bet was placed at Tin Lizzie Gaming Resort on Sept. 9, 2021, just in time for the 2021 NFL season.
2020: The Senate tried again with a similar sports betting resolution in 2020 and this time, it received a better reception in the House.
The House passed SJR 501 by a single vote, putting the issue of legalizing sports betting in South Dakota in front of voters in November. Nearly 60% of voters approved sports wagering in Deadwood.
2019: The effort to put South Dakota sports betting at Deadwood casinos in front of voters began in 2019. The ballot question introduced by a bipartisan group of state senators would have been part of a larger proposal.
A fiscal note by the state Legislative Research Council estimated that Deadwood sports betting revenue would amount to about $2 million annually, with about $185,000 going to the state in taxes.