South Dakota

Sports betting in South Dakota has been legal since 2021, but bettors in the state are strictly limited to wagering at casinos in Deadwood or tribal casinos. Lawmakers in the state have continued their pursuit of legal online sports betting on a broader scale, but their efforts have continually fallen short.

South Dakota’s sports betting bill has strict rules about what can and cannot be wagered legally. The most important restriction concerns online wagering, as placing online sports bets is only allowed when the individual is physically located at Deadwood Casino.

Collegiate sports can be bet on, but wagers on in-state colleges or universities are not allowed. Additionally, betting on minor league or high school sports is strictly prohibited. Bets on politics and eSports are also not offered to bettors in the state. While the online sports betting scene is nearly non-existent, residents of South Dakota can download and use daily fantasy sports apps and racebooks for horse racing.

DFS products exist in an unregulated market as the state has neither outlawed nor legalized them. The good news is that this means residents can at least enjoy some form of sports gambling from the comfort of their homes.

Online sports betting in Mount Rushmore State

Sports betting was brought to light in South Dakota thanks to the passing of SJR 501. This resolution narrowly escaped the House in 2020, but once it did, the resolution was then approved by 58% of voters. This allowed Gov. Kristi Noem to sign SJR 501 in 2021, and shortly after, betting went live on September 9, 2021.

Arguably, the most important or noteworthy regulation of this resolution was that sports betting was only to be offered in Deadwood or at tribal casinos. Gambling itself was limited to Deadwood and tribal casinos prior to the passing of this resolution, so sports betting became lumped in with other gambling-related markets.

Mobile betting is allowed in South Dakota, but with a big asterisk next to it. While bettors in the Mount Rushmore state can place mobile wagers, they must be physically located inside a retail betting facility. All retail betting facilities in Deadwood can offer their own mobile betting app, but residents cannot create an account with that product anywhere outside of the premises of that casino.

There have been multiple efforts to change the infrastructure of sports betting in the state in a growing effort to get full-fledged mobile betting legalized. In 2022, a ballot proposal to make online sports betting legal in SD was able to pass through the Senate, but that proposal would die in the House.

Failed proposals did not stop lawmakers from trying again in 2023. Rep. Greg Jamison introduced HJR 5006 during legislative sessions, and after debate on the House floor, this resolution was voted down. Even with another defeat in this area, it's clear that some lawmakers in the state won’t stop until mobile betting is offered at some point over the next few years.

Sports betting & gambling legislation in SD

Based on the rules and regulations laid out by SJR 501, bettors in South Dakota must be at least 21 years old to place a legal sports betting wager. This rule, along with all the other rules and regulations for sports betting, is enforced by the South Dakota Commission on Gaming.

One of the most significant restrictions regarding sports betting in SD is that remote registration is not allowed. Since all wagers online must be placed at a retail location in Deadwood, customers cannot create a mobile betting account anywhere outside the confines of a licensed betting facility. While the lack of online sports betting is a black eye on the gambling market, one of the best aspects of the state's betting infrastructure is that the state does not withhold taxes for gambling winnings.

Heading into 2024, the expansion of sports betting remains a relevant topic during legislative sessions. The state has been losing revenue by not offering mobile sports betting, but the House remains in strong opposition to expansion. One thing that has not been clear is whether or not iGaming will be included on any of the mobile betting bills, as online casinos and online poker have remained illegal.

Most recent updates from the SD sports betting scene

• April 24, 2023: The Franklin Hotel and Silverado, a staple of the state's betting complex, has a new owner, which the state has just granted a license to operate.

• February 21, 2023: House lawmakers in the state have voted against statewide online betting legalization for 2023, so online sports betting will not be available for at least another year.

• February 14, 2023. Two legislative bills have made their way to the House. If they are passed, sports betting will be legal statewide and online.

In-person sports betting sites and locations

Since South Dakota state law already confined most gambling activities to the town of Deadwood, that rule carried over to sports betting. As a result, Deadwood casinos were able to apply for sports betting licenses, giving bettors close to ten locations in the area to place a legal sports wager.

Outside of Deadwood, residents may also be able to find tribal casinos throughout the state that also offer legal sports betting. Lastly, for horse racing fanatics, there is one off-track betting facility in North Sioux City.

Sports betting in neighboring states

South Dakota is in an area of the country where the sports betting scene is limited. Four of SD’s five neighboring states have legal sports betting, but most markets in those states have limitations similar to those in SD.

You can click on their name in the box below to learn more about how each of those states' betting infrastructures are arranged or why Minnesota has yet to pass any sports betting legislation.

Sports betting revenue impact on South Dakota's economy

As we’ve established, all sports betting in South Dakota is done in Deadwood. For a Deadwood area casino to offer a retail sportsbook, it must apply for a license. If its license is approved, the casino must pay a $2,000 licensing fee upfront and another $2,000 annually. The tax rate for sports betting in SD is one of the lowest in the country, currently at 9%.

Due to South Dakota’s sports betting market layout, the state is not a high earner in terms of handle and revenue. Sports betting has been legal since September 2021, but it took SD until October 2023 to surpass over $1 million in handle for a single month.

The longer South Dakota struggles to get mobile sports betting legal, the more the state's economy will struggle in this area. Of all the states with legal sports betting, SD has made the least amount of handle, revenue, and tax income. This is especially alarming since plenty of the states ahead of SD in those categories have offered sports betting for a very short period of time.

South Dakota sports betting record months:

• Sports betting handle: December 2023 ($1,143,938)

• Revenue: October 2023 ($174,906)

• Tax income: October 2023 ($15,742)

SD sports betting revenue in 2024