Legal Status
Sports betting is legal in the state of South Dakota but has yet to launch.
Legislative Progress
The legislative process in South Dakota started out much like other states; the voters had to give the okay to legalize sports betting via a public referendum. They did just that in November 2020, but for only the casinos in the City of Deadwood.
The South Dakota legislature did just that when it passed Senate Bill 44 in early March 2021, which Governor Kristi Noem signed into law later that month. The bill will go into effect on July 1.
Federal law would permit the state’s 11 tribal casinos to do so once the state legalized sports betting.
There was some initial confusion over whether some ambiguity in the legislation left the window open for mobile sports betting. But future legislation cleared the uncertainty up; all betting will have to take place inside a Deadwood casino.
Other sports betting bills did allow for mobile betting, but officials did not feel mobile betting was what the referendum intended.
Casino Participation
The focus of the bill was on the casinos in Deadwood, but federal law will allow the state’s 11 tribal casinos to offer anything that commercial ones can.
Role of the Lottery
South Dakota does have a lottery, but it does not appear as if it will be involved in any way with sports betting in South Dakota.
Professional Sports Team Involvement
There are no professional sports teams in South Dakota to get involved with sports betting.
Licensing
The South Dakota Commission on Gaming will be in charge of regulating the state’s sports betting industry. Only casinos in Deadwood will be able to apply for a license. While the license is for in-person, retail sports betting, people can bet via their mobile devices when inside the casino.
Casinos were allowed to start applying for a license (which includes a $5,000 application fee) in late May. The state will tax gross revenue at a rate of nine percent.
Expected Live Date
Officials have targeted early September for sports betting to go live.
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