South Dakota Sports Betting Rules Push Forward

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South Dakota sports betting

South Dakota sports betting took another important step this week.

The Legislative Rules Review Committee gave its OK to the Commission on Gaming’s proposed rules for sports betting in South Dakota. The Commission on Gaming will hold a public hearing to adopt additional sports wagering rules on July 14.

The rules are specifically for SD sports betting in the city of Deadwood, which voters approved in November 2020.

South Dakota licensing starting soon

Sports betting in South Dakota will be limited to retail locations at casinos in Deadwood.

When Gov. Kristi Noem signed sports betting legislation into law in March, its effective date was July 1, 2021.

That is the date the Commission on Gaming will begin accepting sports betting operator license applications according to Craig Sparrow, the commission’s deputy executive secretary. There is no official start date for sports betting yet.

Sports betting rules adopted

The committee approved a variety of rules, largely covering the basics for South Dakota sports betting. The most significant was the amendment adding sports wagering to authorized gaming in Deadwood.

Also adopted was a $5,000 application fee for sports betting service providers. The fee is to cover out-of-state travel for background checks.

Other rules adopted relate to record-keeping and surveillance methods.

Committee’s one objection

The committee did reject a rule to deduct federal excise tax from sports betting revenue figures.

Commission on Gaming Attorney Mike Shaw requested the committee revert the rule so the commission can add an amendment before the next meeting.

Deadwood Gaming Association Attorney Roger Tellinghuisen said he will likely be back before the legislature to ask for the tax deduction in January.

“I apologize it turned out to be [a change] they didn’t have the authority to make,” Tellinghuisen said.

Still more to come in South Dakota

The July 14 Commission on Gaming meeting will introduce more technical sports betting rules.

“We’re on track to get sports wagering rolling as quickly as we can,” Shaw said during a Commission on Gaming meeting on May 18.

Sports betting is expected to start later this year. Along with Deadwood casinos, the state’s 11 tribal casinos can offer the same games as commercial properties by law.

South Dakota sports betting restrictions

There is some gray area that could allow for statewide mobile wagering. However, Deadwood Gaming Association Executive Director Mike Rodman told PlayIA there will be preventative measures in place.

Legislators also prohibited betting on in-state colleges.

With the on-premise restrictions, South Dakota’s handle will be greatly hamstrung. Deadwood is a six-hour drive from the state’s largest city, Sioux Falls, which is on the border with Iowa, a legal market that does not require in-person mobile registration.

Neighboring states Wyoming and Nebraska both passed sports betting legislation this year.