Senators Steve Kolbeck and Casey Crabtree, in concert with Representatives Jessica Bahmuller and Eric Emery, have introduced Senate Joint Resolution 507, which proposes an amendment to the state constitution allowing electronic sports betting statewide, potentially opening the door for top sportsbooks to operate in South Dakota.
Beyond Deadwood
If there is one town symbolic of the old Wild West, it is Deadwood, South Dakota. Dusty saloons, rampant lawlessness, and a place where justice was not necessarily fair or impartial have become Deadwood’s legacy. Although the likes of Wild Bill Hickok and Calamity Jane no longer roam those streets and Deadwood is now more of a tourist attraction, there is one other thing that makes Deadwood unique—sports betting.
In September 2021, retail-only sports betting launched in Deadwood but nowhere else in the state. Although legislative attempts have been made to move South Dakota into the much more lucrative digital realm of sports betting, they have not been successful.
In February 2022, the House State Affairs Committee voted 10-3 against SJR 502, a bill that would have allowed mobile sports betting. Department of Revenue Deputy Secretary David Wiest made headlines when he vociferously spoke out against the bill.
“It strikes me that people have been doing lots of stuff illegally; should we strike those laws too? How about theft? How about murder?” Wiest asked the committee.
Interestingly enough, the Deadwood Gaming Association was not in attendance at that meeting because the group could not come to a consensus opinion on mobile sports betting. Some casino operators were reluctant to lose their sports betting exclusivity.
However, others were more optimistic, citing that the casinos in Deadwood that did offer sports betting would be getting some of that mobile sports betting revenue, as third-party platform providers would be required to partner with them to gain access to the market.
The casinos currently operating in Deadwood are Cadillac Jack’s Gaming Resort, Gold Dust Casino, Tin Lizzie Gaming Resort, Dale’s Sportsbook Bar & Grill, Landmark, and The Lodge at Deadwood.
Try, Try, Try Again
It was only a year later, in 2023, when another sports betting measure, House Joint Resolution 5006, passed through committee but was ultimately defeated in the House by a 41-28 vote. One issue that was unable to be hurdled was the effect mobile sports betting would have on existing tribal gaming compacts.
Now we have lawmakers taking another bite at the online sports betting apple in the form of Senate Joint Resolution 507, a bipartisan effort that would amend the state’s constitution to allow for statewide mobile sports betting. However, if approved, it would be subject to a referendum ballot question decided by the voters in 2026. Thus, even if this legislation does pass, it will still be a few years before South Dakota sees statewide digital sports betting.
As in the last sports betting proposal, Deadwood casinos would hold the licenses and could partner with national sports betting operators like Caesars, DraftKings, or FanDuel to name a recognizable few. Those companies would be required to house their servers in Deadwood while 90% of the revenue would be earmarked for property tax relief.
Neighboring states like Iowa, Nebraska, Montana, and Wyoming have all launched online sports betting, while Minnesota is considering the proposition of doing the same. Therefore, it is safe to say that South Dakotans are crossing state lines to wager on sports with border states and filling those tax coffers rather than their own.
SJR 507 is currently in the Senate Commerce and Energy Committee awaiting a vote.
