South Dakota lawmakers passed a resolution Wednesday that would allow voters to decide whether to expand sports betting beyond Deadwood through statewide mobile wagering.
Senate Joint Resolution 504 proposes amending the South Dakota Constitution to permit wagering on sporting events via a mobile or electronic platform. If approved by the Legislature, the proposal would appear on the November 2026 general election ballot.
Mobile betting would still be tied to Deadwood with all bets being routed through servers at the casinos.
South Dakota sports betting history
Sports betting in South Dakota has been tightly restricted since its legalization after voters approved sports wagering in Deadwood in 2020. The market launched before the start of the NFL season in 2021, limiting betting in-person sports books located inside Deadwood casinos.
Efforts to expand wagering beyond city limits have continuously failed. A 2022 proposal to authorize statewide mobile sports books stalled in a House committee amid fierce opposition, where critics likened gambling expansion to serious crimes and warned it would fundamentally alter the state’s gaming landscape.
“It strikes me that people have been doing lots of stuff illegally, should we strike those laws too? How about theft? How about murder?” the Department of Revenue Deputy Secretary David Wiest asked at the time.
Sports betting revenue leaving South Dakota
Lawmakers advancing the resolution repeatedly argued that mobile sports betting revenue is already being generated by South Dakotans but flowing out of the state and into Iowa.
“This revenue is already being generated in our state, but it is leaving our boarders and going to the benefit of surrounding states,” Sen. Casey Crabtree said during the testimony discussion. “The voters get to decide if they want this in November, and if the people say yes, then the legislature builds the guardrails and safety nets int he next session.”
Crabtree also tied the proposal directly to property tax pressure, which he described as a top issue: “We’ve got hard working folks … telling you that their property tax bill rivals what their mortgage was at one time.”
Concern over expansion
Opponents raised concerns though about gambling addiction and social harm.
“South Dakota is rated number two of the five most gambling addicted states,” Sen. Joy Hohn said. “Gambling addicts develop a high tendency to amass even more debt, suffer from other health issues, lose their jobs, strain their relationships or even commit crimes.”
Sen. Steve Kolbeck explained mobile betting is already happening within South Dakota through offshore operators.
“On this floor… I can use my phone, I can download an app, and I can bet… all of that can be done today, right now,” Kolbeck said.
More tax dollars for property relief
The proposal mandates that 90% of taxes collected from mobile sports betting be used for property tax relief or to reduce property taxes statewide. South Dakota taxes retail sports betting at 9% of adjusted gross revenue.
Since sports betting launched in September 2021, South Dakota’s retail only model limited its market participation and tax generation. Of the nearly three dozen states that publicly report sports betting data, South Dakota ranks last in terms of handle, revenue and tax dollars.
