Happenings at the Federal level of government are the biggest precursors surrounding the development of sports betting in the Mount Rushmore State.
South Dakota’s State Legislators have been granted the opportunity to consider the possibility of introducing legal sports betting after the U.S. Supreme Court’s decision to pass sports betting laws back to the states in May 2018, following the successful court challenge by the state of New Jersey to the Federal nationwide sports betting ban.
Currently, South Dakota does not have legal sports betting, however, the State Government is beginning to lay the ground work by which it will be possible.
In January 2018, the South Dakota Department of Revenue made public a white paper explaining the process that the State should adopt once the Supreme Court ruled in favor of New Jersey and overturned the federal law prohibiting sports betting.
The White Paper recommended a state-wide referendum on sports betting, granting regulatory power on sports betting to the state’s Commission on Gaming, limiting sports betting to licensed casinos, and that the State Legislature should determine a tax rate on sports betting. Similar to other states, the white paper recommends that sports betting in South Dakota should be a ‘pool betting’ format, (as horse racing payouts are determined).
The introduction of legal sports betting bills and their debate began in South Dakota in the January 2019 legislative session.
The outcome of that process led to the State Legislature passing Bill SJR 501, a sports betting referendum bill which will ask the state’s voters to decide if they want to authorize and amendment to the state constitution to allow for bricks-and-mortar sports wagering in the town of Deadwood. Notably, at this stage, there is no allowance for online sports betting.
Under Federal Law, any potential sports wagering authorized for Deadwood would also be need to be permitted at on-reservation tribal casinos upon amendments to current tribal gaming compacts.
State Governor Kristi Noem signed sports betting legalization bill into law in March 2021 and the first sports wagers at Deadwood’s bricks-and-mortar casinos are expected to be placed on or around September 1 2021.
As a result, legal sports betting could arrive earliest in South Dakota in the second half of 2021 and hopefully, something like online sports betting NJ could be in the Mount Rushmore State sooner rather than later.
Meanwhile, South Dakota’s residents and visitors can bet 100% legally on horse and greyhound racing and enjoy playing DFS real money competitions until legal sports betting becomes reality in the Mount Rushmore State.