Sports Betting Legislation Introduced in South Dakota

Summary: Lawmakers have introduced legislation involving sports betting in South Dakota.

It seems almost every week that new legislation is being introduced in states across the US involving sports betting. Since the US Supreme Court ruled that the PASPA is no longer valid, lawmakers have been working quickly to get started in the new industry. South Dakota is the latest state to introduced legislation involving sports betting. SJR 2 was introduced this week by senators, seeking to see voters having the ability to legalize the gambling option in the state.

Sports Betting Legislation

With SJR 2, sports betting would be legalized in Deadwood, South Dakota, the gambling area of the state. Sports betting would be limited to the casinos in Deadwood and mobile options are not included in the bill.

If the measure were to pass into law, the eleven tribal operated casinos in the state would be able to offer sports betting as well. In South Dakota, tribes have the right to offer legal forms of gambling, so once legalized, the tribes could operate as well.

With the measure, sports betting plays only a small role. In general, the bill is being used to straighten out language of gambling law in the state that relates to the public spirited organizations that can provide games of chance in regard to charitable events.

However, in one small section of the legislation, sports betting is covered. The changes include roulette, keno, craps, wagering on sports betting events, limited card games and slots in Deadwood. In the bill, it states that legislature may authorize any of these categories by law.

The proceeds from such gaming would be adjusted on an annual basis based on inflation with monies going towards the Historic Restoration and Preservation of Deadwood. The amendment is connected to an option the Deadwood Gaming Association is pursuing.

The DGA would like to see an amendment placed on the 2020 ballot that would allow voters to weigh in on sports betting. The amendment cannot be placed on the ballot yet. The petition to do so requires signatures to qualify and the number required has yet to be met. However, if the bill proposed passed, then this action might not be needed.

Benefiting from Sports Betting

In Deadwood, the region would be able to benefit from sports betting operations. The state’s Legislative Research Council has estimated that such gaming would bring $2,051,972 in revenue and $184,678 in taxies in FY 2022. Right now, the gaming revenues in the state are taxed at 9%. The analysis has determined that over $100 million will be generated in total gaming revenues for the region by the fiscal year 2022.

Several areas of Deadwood benefit from the tax revenues. The State General Fund would receive a portion along with the Tourism Promotion Fund, the county, the city and the municipals in the county. Schools in the Deadwood region would also be able to benefit.

Now, the bill has to be able to move through legislature and be approved. If passed, the state would join the growing list of areas in the US that offer sports betting. State after state are beginning to become involved in the new industry. However, South Dakota will be a little behind other regions like New Jersey by not taking advantage of mobile sports betting.

Players want access to mobile betting and ignoring this sector of the industry can cut down on the total amount of revenues that can potentially be generated. It is possible that a change could be made in the process to see mobile gaming added, but that is yet to be determined.


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