The Governor of South Dakota, Kristi Noem, has officially signed the state’s sports betting legalization bill SB 44 into law. In February, the South Dakota Senate approved the sports betting legalization bill by a vote of 32-2 and the House then approved the bill by a margin of 58-8 earlier this month to send SB 44 to Governor Noem for signature.
After much debate by lawmakers and further media discussion if the result of last November’s referendum (where South Dakota voters approved Amendment B by a margin of 58.5% for, 41.5% against) that found for South Dakota sports betting would also legalize online sportsbooks, for now at least, the answer is no. However, meanwhile, Sports betting in South Dakota is now legal to be will permitted at the casinos in the historic town of Deadwood. Players will be able to legally places wager at a number of sports betting windows, kiosks or through a mobile app (protected by geolocation technology) inside the casinos.
How South Dakota Sports Betting Will Work & When
It is expected that from September 1 2021, the newly signed bill will allow sports betting in the state’s historic city of Deadwood, the only location in the entire state of South Dakota where any form of gambling is legal.
With the new gaming regulations covering sports betting, a customer wishing to place a wager on sports will first need to register in-person at one of Deadwood’s licensed casinos. After going through the sign-up process, registered customers will be permitted to place a sports wager using a mobile device when inside the casino.
A sports betting operator license will set back approved providers $2000 up front with the operators then need to pay an additional $2000 annual renewal fee.
The legislation does not yet set a tax rate nor provide any detail of how many licenses would be made available in Deadwood. These details are expected to be finalized well before the anticipated launch date of September 1. Although the law officially changes on July 1 2021, it will take a little time to iron out all the details. The state’s sports betting industry will be regulated by the South Dakota Commission on Gaming.
Bettors in South Dakota will have access to legally wager on a wide selection of sporting events, however, wagering on every single event will not be permitted.
For example, betting on high school sports, minor league sports and colleges located with state lines state will be prohibited, as will prop bets on individual college athletes participating in sports like college football or college basketball.
South Dakota state officials estimate that an initial annual increase of about $6.8 million in sports betting revenue and an overall gaming jump in revenue of approximately $22 million with the expected extra foot traffic in Deadwood’s bricks-and-mortar casinos.
State Government officials and potential operators alike are quietly hoping that they state will meet its projected September 1 start date to cash in on the start of the NFL season, America’s biggest sport for sports wagering.
According to Executive Director of the Deadwood Gaming Association, Mike Rodman, the sooner the rules are developed, the sooner revenue will begin rolling in for South Dakota as wagering begins;
“Our next step will be working with the South Dakota Commission on gaming to promulgate the rules. Once the commission approves the rules, it’ll go back to the interim rules committee for final approval, and then it will be official. We expect that process will take a little bit of time to get everything in place. “We’re pushing to catch as much as the football season as we possibly can,” he said.