Two legislators from South Dakota are advocating to broaden the scope of sports betting in the state by permitting online wagering.
Senator Casey Crabtree and Representative Greg Jamison are the driving force behind Senate Joint Resolution 504, a proposal aimed at legalizing online sports betting through a constitutional amendment. Should the legislature approve it, the proposal will be presented to voters in November 2026, granting South Dakotans the opportunity to decide on digital wagering.
South Dakota initiated retail sports betting in November 2020, following the passage of the Deadwood Sports Betting Legalization Amendment, which garnered 239,620 votes in favor and 170,191 against in a constitutional amendment. Currently, betting is only permitted at commercial casinos in Deadwood, along with retail wagering available at two tribal casinos operated by the Sisseton-Wahpeton Oyate Tribe’s Dakota Nation Gaming Enterprise.
If passed, SR 504 mandates that online sports betting operators work in tandem with established land-based casinos, and servers must be housed within city limits of Deadwood. However, users will have the flexibility to place bets from any location within the state.
The legislation suggests allocating 90% of the tax revenue derived from online wagering to property tax relief. Meanwhile, funds generated from retail sports betting will continue to finance the restoration and preservation efforts in Deadwood. In 2024, the South Dakota Department of Revenue reported a total of $1.7 billion in property taxes collected statewide.
While SR 504 does not outline a specific tax rate for online betting, retail sports betting currently incurs a 9% tax at Deadwood and tribal casinos. Since its inception in 2021, the state has amassed over $3.5 million in sports betting taxes, including $925,477 for FY2025.
SR 504 had its initial reading in the Senate on January 23 and has been referred to the Taxation Committee for deliberation. It enjoys the support of more than five Republican senators but is expected to encounter hurdles, given that a similar bill failed in the House in 2023.
South Dakota isn’t the only state contemplating voter-approved gambling initiatives. In Alabama, Senator Merika Coleman intends to draft legislation for a constitutional amendment that would authorize a lottery, sports betting, and casino gambling, amid anticipated declines in the state’s General Fund for FY2027.