South Dakota senators voted Wednesday night to move forward with a constitutional amendment that would allow residents to decide whether mobile sports betting should be permitted statewide, expanding wagering beyond the current in-person model limited to Deadwood.

The Senate approved Senate Joint Resolution 504 by a 23-10 vote during its final consideration in the chamber. If the House passes the measure, voters would consider the amendment in November 2026. The proposal does not require approval from Gov. Larry Rhoden to appear on the ballot.

Under the resolution, mobile wagering would be authorized through electronic platforms, but all bets would be routed through servers located at casinos in Deadwood. Retail sports betting is currently available at commercial casinos in Deadwood and at two tribal casinos outside the city.

South Dakota first authorized sports betting through a constitutional amendment approved by voters in 2020, leading to the launch of retail sportsbooks ahead of the 2021 NFL season. Since then, wagering has been restricted to in-person betting within Deadwood casinos.

A 2022 attempt to legalize statewide mobile sportsbooks stalled in a House committee after critics compared gambling expansion to serious crimes and warned of long-term consequences for the state’s gaming framework.

“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.

Supporters of Senate Joint Resolution 504 argue that South Dakotans are already participating in mobile betting, either by traveling to neighboring states or using offshore platforms. Sen. Steve Kolbeck told colleagues that wagering through unregulated operators is currently accessible from within the state.

“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.

Backers also linked the proposal to concerns about property tax burdens. The resolution mandates that 90% of tax revenue generated from mobile sports betting be directed toward property tax relief or reducing property taxes statewide. The state’s Department of Revenue reported that property taxes reached $1.7 billion in 2024.

Sen. Casey Crabtree, a co-sponsor of the measure, framed the amendment as a way to retain revenue currently flowing elsewhere and to allow voters to weigh in directly.

“The proposal in front of you is about property tax relief,” continued Crabtree. “It ultimately puts more money in the pockets of hard-working South Dakotans. This revenue is already being generated in our state, but it is leaving our borders and going to the benefit of surrounding states.”

Crabtree also stated that lawmakers would retain authority over implementation details if voters approve the amendment.

The resolution does not establish a specific tax rate for online wagering or outline detailed consumer protection standards. Those elements would be determined by the Legislature in a subsequent session if both the House and voters approve the measure.

South Dakota currently taxes retail sports betting at 9% of adjusted gross revenue. While no rate has been set for mobile betting, lawmakers indicated it could exceed the existing retail rate.

Opponents continued to raise concerns about addiction and social costs. Sen. Joy Hohn cited state rankings related to gambling dependency during the debate.

“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.”