A proposal could expand South Dakota sports betting outside of its Deadwood limits.
A bipartisan effort, Senate Resolution 507, was introduced this week. If approved, it would send statewide online SD sports betting to the voters in South Dakota. The proposal would use 90% of the sports betting tax as property tax relief.
If passed by the legislature, the proposal would give voters their say on the issue in November 2026. The resolution begins its legislative journey in the Senate Commerce and Energy Committee.
SD sports betting resolution
South Dakota gambling is legal in the city of Deadwood. That includes sports betting, which the legislature legalized in 2021.
The resolution filed this week would allow for online sportsbooks across the state if voters also give their approval. The casinos in Deadwood would hold the licenses and operate or partner with the sportsbooks.
The amendment also would require the sportsbook platforms to have servers located within Deadwood.
Previous efforts in South Dakota
South Dakota voters approved sports betting in Deadwood in 2020. State legislators restricted it to in-person sportsbooks in 2021.
Previous efforts to expand beyond city limits have been stymied. In 2022, a resolution to legalize mobile sportsbooks died in a House committee. One lawmaker equated the gambling expansion to murder and theft.
Deadwood casinos had not reached a consensus on the issue, and at least a few believe the expansion would hurt their revenue.
Online expansion efforts
Mississippi sports betting is also restricted to casino property. A bill to expand sportsbooks statewide passed the House this week, a step it took last year.
Other states are considering expanding gambling with online casino legalization.
Several states have already put those efforts on ice, including South Dakota’s neighbor, Wyoming.
