South Dakota Senate passes online sports betting proposal
The South Dakota Senate advanced Senate Joint Resolution 504 (SJR 504) in a 23–10 vote, bringing the state closer to expanding sports betting beyond Deadwood’s casinos. The House is now going to discuss the resolution. Voters will decide in November whether to allow sports betting outside of Deadwood’s casinos, if the House gives its approval. The resolution outlines that online betting would only operate in partnership with Deadwood casinos and directs 90 percent of state revenue from mobile wagering toward property tax relief. Specific tax rates and regulatory details would be determined later.
Background of sports betting
Voters approved sports betting in South Dakota in 2020, but only in the city limits of Deadwood. Following suit, lawmakers in 2021 limited it to in-person bets at Deadwood casinos, omitting statewide access and smartphone apps. Since then, Deadwood has been the only location for authorised betting; retail sportsbooks were introduced in September 2021.
SJR 504 ties online sports betting revenue directly to property tax relief, with 90 percent of funds earmarked for that purpose. Property taxes in 2024 amounted to $1.7 billion, according to the South Dakota Department of Revenue, placing a significant financial strain on homeowners. According to Senator Casey Crabtree, the plan would help retain money in the state instead of going to nearby markets, although proponents point out that there is already betting activity.
Crabtree stated, “The proposal in front of you is about property tax relief. 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.”
Concerns about compulsive gambling and its wider social effects are the main reasons for opposition to South Dakota’s expansion of online sports betting. The state already has a high rate of gambling addiction, according to Senator Joy Hohn, and the hazards include debt, lost jobs, damaged relationships, and criminal activity.
Financial performance
Since retail sportsbooks opened in Deadwood in 2021, they’ve taken in about $38.9 million in wagers and produced $3.9 million in revenue. In contrast, Wyoming’s online market regularly exceeds $25 million in bets each month. Testimony in South Dakota suggested that if online betting were expanded statewide, the monthly handle could reach around $17 million, showing how much larger the market could be compared to the current retail-only system.
Data shows that many South Dakotans are already betting across state lines or through unregulated platforms. Reports indicate that about 55,000 online betting accounts registered in Wyoming are linked to South Dakota residents. GeoComply also tracked more than 100,000 geolocation pings near the South Dakota–Iowa border during the 2025 NFL season, suggesting people were travelling specifically to place bets.
Implementation concerns
South Dakota still has unanswered questions about how online sports betting would be implemented. Although lawmakers have not specified specifics, they have speculated that the mobile rate could be higher than the state’s existing 9 percent adjusted gross revenue tax on retail betting. Additionally, the resolution omits information about enforcement, licencing costs, and consumer protections—all of which the legislature would need to determine later. Even if voters approve the measure, lawmakers will retain authority to shape the system, meaning legalisation would not take effect immediately.
What happens next
The South Dakota House will now have to determine whether to move SJR 504 to the November ballot. Voters would decide whether to allow internet sports betting throughout the state if it were passed. Supporters point out the potential for millions of additional tax revenue, while opponents warn of increased exposure to gambling risks. The argument highlights a trade-off between collecting money and bringing attention to accountability issues.
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