South Dakota might have legal sports betting, but placing a bet requires visiting a retail sportsbook located inside one of the Deadwood casinos. Lawmakers from the Mount Rushmore State are attempting to add statewide mobile sports betting apps to the current landscape.
Senate Joint Resolution 504 proposes amending the South Dakota Constitution to allow sports wagering via a mobile or electronic platform. The Senate has voted 23-10 in favor of the bill that would include property tax relief for residents. It still requires a thumbs-up from the legislature before voters can have a say in the November general election.
The first House reading of SJR 504 took place on February 12.
Neighboring states Iowa, Wyoming, and Montana all offer mobile sports betting. Nebraska lawmakers are having mobile sports betting debates as well.
It means if South Dakota residents want to place mobile sports bets, potential tax revenue is leaving the state.
If SJR 504 passes it would help resolve the situation. Here is a snippet of the proposed changes that the bill includes:
“It is lawful for the Legislature to authorize by law wagering on sporting events by individuals located within and outside the city limits of Deadwood, by means of a mobile or electronic platform, provided the mobile or electronic platform is offered by or in partnership with a licensed casino and the platform has its servers located within the city limits of Deadwood.”
The wording continues that 90% of the proceeds from all taxes imposed on mobile sports wagering “must be used for property tax relief to reduce property taxes in this state.”
Like New Yorkers used to do before the Empire State legalized mobile sports betting, crossing state lines to place legal bets is a common practice.
During the recent South Dakota Taxation Committee hearing, John Papas shared data from GeoComply, a geolocation tracking company.
Papas told the committee that GeoComply logged 1.6 million geolocation checks from 55,000 people in South Dakota last year. He also revealed that close to 7,000 people crossed state lines during the previous NFL season, with the bulk of them entering Iowa.
When talking about top U.S. sports betting markets, South Dakota is one of those jurisdictions that people might not realize is legal. However, it has been around since the 2021 NFL season. The Cadillac Jack’s and Tim Lizzie gaming resorts have BetMGM-branded retail sportsbooks.
Outside of Deadwood, South Dakota tribal casinos are permitted to offer in-person sports betting. Current sports betting law prohibits betting on games involving in-state college teams and universities. College player prop bets are prohibited as well.
Legislators previously tried to add mobile sports wagering in 2022, but the efforts failed.
Should the latest version of South Dakota mobile sports betting make it to the finish line, the state’s gaming commission would be tasked with crafting the regulations such as permitted sports and the number of skins.
