New Rules Emerge For Sports Betting In South Dakota

Posted on May 20, 2021
sports betting in South Dakota
Posted By on May 20, 2021

With betting in Deadwood on the horizon, new rules for sports betting in South Dakota were approved on Tuesday.

The South Dakota Commission on Gaming approved a new set of regulations. It is the next step as SD prepares to launch sports betting in Deadwood later this year.

Gov. Kristi Noem signed SB 44 into law March 18 after legislators moved quickly to enact the wishes of South Dakota voters from November 2020. The law goes into effect July 1.

Previously, September 1 had been stated as a target to launch sports betting in SD.

New South Dakota sports betting rules

Perhaps the most important adopted rule was adding sports wagering to the list of authorized gaming in Deadwood. The rules do not take effect until July 1.

There is also now a $5,000 application fee for SD sports betting service providers. Applications for sports betting in Deadwood will open Friday, with approvals starting July 1.

Also approved was a proposed rule to deduct promotional spending and federal excise tax from reported revenue figures.

Physical space rules in Deadwood

Many of the rules added in South Dakota include additional reporting requirements and adding sports betting equipment to inspection language.

Another rule prohibits licensees from wagering on sports.

Surveillance also received an overhaul, as the casinos are to switch from videotape surveillance to digital, while also monitoring sports wagering areas.

More to come in South Dakota

There is still more left to do for regulators before South Dakota sports betting can launch.

The rules laid out Tuesday need to go for a hearing by the Legislative Interim Rules Review Committee on June 7. The Commission on Gaming will discuss more technical rules during a meeting held after July 1.

“We’re on track to get sports wagering rolling as quickly as we can,” commission attorney Mike Shaw said during the meeting.

Details from SD sports betting legislation

South Dakota legislators worked quickly to concur with state voters this session. The Senate passed the bill, 32-2, before the House approved it 58-8.

Sports betting in SD is limited to the casinos in Deadwood. Despite some unclear language in the legislation that could open the door to statewide mobile betting, Deadwood Gaming Association Executive Director Mike Rodman told PlayIA geolocation technology will ensure the Deadwood rule is followed.

Since tribal casinos can offer the same games as commercial properties by law, sports betting in South Dakota can also take place at the state’s 11 tribal casinos.

South Dakota restrictions

Deadwood is a six-hour car ride from Sioux Falls, the most populous city in the state, leaving most South Dakotans without sports betting.

They also might keep heading to neighboring states. Sioux Falls is essentially on the border with Iowa, which does not require in-person registration or wagering. Wyoming legalized mobile sports betting this year, while in-person sports betting in Nebraska appears likely to cross the finish line this legislative session.

South Dakota legislators also prohibited betting on high school sports, minor league sports and colleges in South Dakota.

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Pat Evans

Pat Evans is a Las Vegas-based reporter covering sports business. Evans previously worked at Front Office Sports and the Grand Rapids Business Journal. He has authored two books: Grand Rapids Beer and Nevada Beer.

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