Could South Dakota get a vote on legalizing online sports betting?
The US state of South Dakota is looking to potentially expand its sports betting offerings after the South Dakota State Senate approved a proposal that would let its residents vote on allowing sports betting online throughout the state.
Earlier in February, the South Dakota Senate voted 23-10 in favor of a resolution – namely, Senate Joint Resolution 504 – that would pull 90% of tax revenue from mobile sports betting towards reducing state property taxes. It’s now up to the House of Representatives to approve the proposal. If the House is able to push it forward, the movement will go on the November ballot for state residents to vote on.
Is sports betting legal in South Dakota?
Sports betting was legalized in South Dakota in 2020, but it’s currently limited to Deadwood and tribal casinos. The Senators behind the recent resolution believe it’s best to expand sports betting in the state to online spaces in an attempt to regulate it and better profit off of it, since “these people are already doing it,” according to Republican Senator Amber Hulse.
Republican Senator Steve Kolbeck shared similar sentiments. He took to the Senate floor on February 11 to tell lawmakers that legalizing online betting sites would economically benefit the state, as residents currently drive across state borders to other states including Iowa and Wyoming to place their bets. This means South Dakota misses out on that sports betting revenue as well as whatever entertainment and restaurant payments residents would make if they were staying within the community instead.
South Dakota residents would potentially benefit as well.
“The proposal in front of you is about property tax relief. It ultimately puts more money in the pockets of hard-working South Dakotans,” Senator Casey Crabtree said. “This revenue is already being generated in our state, but it is leaving our borders and going to the benefit of surrounding states.”
In 2024, property taxes totaled $1.7 billion in South Dakota. This would be reduced if citizens vote to approve mobile sports betting. And that approval would be required, as unlike some other US states, South Dakota would be putting the decision directly in front of the state’s residents.
Legalizing sports betting on a larger scale would also help regulate betting activity, ensuring it’s done on approved and regulated sites rather than potentially on unregulated markets.
“They’re already doing it on the black market. They’re already potentially making bets that are hurting their families more,” Hulse said. “So why don’t we put some guardrails on it and help protect some families so that there aren’t as many harms being done by this, especially to our communities?”
Opponents of Senate Joint Resolution 504 include some state residents who remain concerned about the potentially addictive nature of gambling. They also question connecting property tax reductions to gambling revenue, which could encourage even more gambling.
Hulse and others have countered those concerns by further emphasizing that this gambling activity is already occurring, and that making it legal locally in the state of South Dakota would only change where the resulting tax revenues are being directed. In this proposal, they would be funneled away from neighboring states and back into South Dakota.
Should the vote be placed on the November ballot and then approved by state residents, South Dakota would join other US states like Missouri that have further embraced online sports betting and the tax revenues it can create.
Olivia has worked in media ever since graduating from college, with her coverage ranging from traditional newspaper reporting to digital coverage of all things gaming, online betting, and nerd culture. She has traveled around the world pursuing that coverage, from the far coasts of the United States to the busy downtown core of Tokyo, Japan. Olivia’s favorite games include Overwatch and Super Smash Smash Bros, and she has been published at Esports Illustrated, Inven Global, EsportsInsider, Upcomer, and elsewhere.
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