South Dakota (SD)

Mount Rushmore State is one of the US states with an increasing demand for online sports betting. Interestingly, sports gambling is legal in South Dakota after SD residents voted overwhelmingly in favor of the SB 44 bill. However, the bill proposed sports wagering to happen in a limited fashion, with only four casinos located in Deadwood allowed to offer sports betting.

A ballot proposal was passed by the Senate in November of 2022 to legalize sports betting, however, the house voted against it so sports betting can still only be done in Deadwood casinos. It is unclear if and when another proposal could be put on the ballot for legalized mobile sports betting.

Online Sports Betting in South Dakota

Immediately after the United States of America overturned the federal ban on betting, South Dakota took significant steps toward legalizing it. Sports wagering was put to the ballot in 2020, and the SD residents approved it. However, this only allowed in-person sports betting in the four casino establishments in the state.

Although sports betting is currently limited to state-regulated brick-and-mortar casinos, bettors can still use the BetMGM app to wager online. These wagers can only be made in person however and not outside the confines of the casinos. This makes online sports betting in South Dakota legal.

Previously punters needed to be at the casino establishments to bet online and the casinos made sure of this through their geo-restricted sports betting apps. However, that changed when the state realized it could rake in more revenue if bettors could bet remotely. That said, online betting bookies must work with land-based casinos to offer similar odds.

Besides the state-regulated online bookies, bettors in South Dakota can still wager through offshore sports gambling sites and mobile applications. There is no mention of the legality of sports betting through such apps, which gray area punters in the state take advantage of. Nonetheless, it is a risky venture since American federal laws do not govern these offshore sites. But most of them are trustworthy and reputable in the US.

Sports Betting Legislation in SD

The state legalized gambling in South Dakota in 1989 but was limited to slots and card games. Decades later, in 2015, the state sought the opinions of voters who approved table games. This made SD a perfect gambling hub in the US and was the precedent for the legalization of sports betting.

In 2020, South Dakota once again put its citizens to the task of approving sports betting as they voted overwhelmingly, with 58% of the votes being in favor of Senate Bill 44. Afterward, legislators in both the Senate and the House of Representatives discussed and approved the bill. They then forwarded the amended bill to the office of Gov. Noem Kristi in March 2021, who signed it into law.

In September 2021, the first legal wagers in the state were placed at the land-based retail casinos. 2022 has also seen some in-person and online sports betting at these casinos. Bettors might have to wait a bit longer for mobile sports betting after a recent proposal was turned down by a house committee.

Restrictions

The biggest restriction that South Dakota has on sports betting is that all bets must be made in person, as no online betting is available in the state. While making legal bets, customers are not prohibited to bet on events that feature in-state colleges or universities.

In order to make a legal sports wager in the state, customers must be at least 21 years of age.

Licensing and Taxes

The licensing fee in South Dakota is $2,000, which is very low compared to many other legalized states.

Additionally, there is a 9% tax rate for retail casinos and a 9% effective tax rate. Since the state does not allow online betting, there is no tax rate necessary for online betting.

In-Person Sports Betting In South Dakota

SB Bill 44 allowed in-person and online wagering with the state-regulated casinos in Deadwood only. Currently, South Dakota has 11 brick-and-mortar retail casinos, and these casinos accept wagers on daily fantasy sports and lottery games with no restrictions whatsoever. Bettors can even wager on these sports online within the casino's jurisdiction. However, the minimum age for one to place bets through these casinos is 21 years.

The Cadillac Jack's Gaming Resort was the first retail casino to offer in-person sports wagering in SD. It was then joined by Mustang Sally's, Gold Dust Casino, and Tin Lizzie Gaming Resort.

Notably, bettors in the state have enjoyed competitive odds from these casinos over time. However, from what we have seen in neighboring states, it is evident that statewide online betting allows for more competitive odds.

Sports Betting In Neighboring States

South Dakota has no restrictions that prohibit residents from wagering in neighboring states. All SD bettors can travel to any state with legal sports betting and wager on their favorite markets. As such, states like Montana and Colorado offer in-person and online sports wagering to bettors from Mount Rushmore State.

Notably, online sports wagering in these states is legal statewide, so bettors can bet from any corner of these states without limitations. However, for example, the CO online betting apps, like in other states, are also geo-restricted, meaning that a bettor has to be within state lines to bet.

But the state of Iowa is perfect for bettors who prefer in-person sports betting. As long as a bettor is of legal age, they can travel to this state and place wagers as they please.

In Colorado and Montana sports betting scenes, bettors will find sportsbooks such as Betway and BetMGM, which offer a wide range of sports betting markets. Moreover, they operate in conjunction with state-run casinos, which helps the states earn more in terms of revenue.

How profitable has sports betting been for South Dakota?

Since their legalization, South Dakota has made over $12 million dollars in sports betting handle. This is considered low compared to most states, but that is due to them only having retail betting. Here we will take a look at their monthly numbers for handle, revenue, and tax rate.

• October 2023:

  • Handle: $1.02m

  • Revenue: $174,906

  • Tax Income: $15,742

• September 2023: Handle: $979,694. Revenue: $170,129. Tax Income: $15,312

• August 2023: Handle: $518,052. Revenue: $37,453. Tax Income: $3,371

• July 2023: Handle: $413,368. Revenue: $20,087. Tax Income: $1,808

• June 2023: Handle: $417,025. Revenue: $9,254. Tax Income: $833

• May 2023: Handle: $528,562. Revenue: $22,536. Tax Income: $2,028

• April 2023: Handle: $493,045. Revenue: $22,503. Tax Income: $2,025

• March 2023: Handle: $923,904. Revenue: $161,368. Tax Income: $14,523

• February 2023: Handle: $717,137. Revenue: $82,853. Tax Income: $7,457

• January 2023: Handle: $910,312. Revenue: $123,365. Tax Income: $11,103

2022

• December 2022: Handle: $757,610. Revenue: $151,374. Tax Income: $13,624

• November 2022: Handle: $861,660. Revenue: $75,856. Tax Income: $6,827

• October 2022: Handle: $862,170. Revenue: $131,749. Tax Income: $11,857

• September 2022: Handle: $711,577. Revenue: $211,612. Tax Income: $19,045

• August 2022: Handle: $266,673. Revenue: $59,053. Tax Income: $5,315

• July 2022: Handle: $259,180. Revenue: $16,143. Tax Income: $1,453

• June 2022: Handle: $301,217. Revenue: $27,869. Tax Income: $2,508

• May 2022: Handle: $307,995. Revenue: $25,102. Tax Income: $2,259

• April 2022: Handle: $368,517. Revenue: $86,938. Tax Income: $7,824

• March 2022: Handle: $975,347. Revenue: $97,643. Tax Income: $8,788

• February 2022: Handle: $685,631. Revenue: $81,367. Tax Income: $7,323

• January 2022: Handle: $853,252. Revenue: $82,291. Tax Income: $7,406

What is legal to bet on in South Dakota?

While statewide online sports wagering is illegal in South Dakota, bettors still enjoy a wide array of betting markets. The brick-and-mortar casinos in the state work in conjunction with licensed sportsbooks to give bettors a chance to wager on Daily Fantasy Sports (DFS). This arrangement is hardly a surprise since these sports are favorites for many SD residents.

Since 2020, players in South Dakota have confided in offshore sportsbooks for online wagering. Players can bet on the NBA, NFL, Boxing, and NCAA. In the last week alone, all offshore bookies featured the Super Bowl — the most popular sporting activity in the US, and players even got the chance to bet on the star-studded halftime performances.

For example, DraftKings also offers horse racing and e-sports that bettors all over SD have grown to love. But it’s important to note that state laws in SD do not allow anyone under 21 to wager online. As such, sports betting sites and apps will always require age verification.

Despite its loss in popularity horse racing is also legal to bet on in South Dakota and can be done on the Twinspires, BetAmerica, or TVG app.

Gambling news and updates from South Dakota

• April 24, 2023: The Franklin Hotel and Silverado, which is a staple of the states 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 in the state for at least another year.

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

How do mobile sportsbook apps work in South Dakota?

Currently, SD does not have statewide, state-regulated sportsbook apps. Yes, licensed casinos develop mobile betting apps, but bettors can only use them within casino establishments. This can be disadvantageous for bettors who do not want to travel to the casino.

With this in mind, bettors in the state have permanently opted for offshore sportsbooks for their wagering pleasures. In the recent past, most bettors have found refuge in these apps since state laws do not regulate them. Some of these offshore bookmakers are even available in neighboring states.

The most popular offshore sports betting apps in SD are Bovada, BetOnline, and MyBookie. They offer similar sports wagering markets; hence gambling with any of them guarantees many conveniences. Besides working similarly, the apps require bettors to provide correct personal details during registration, which allows the player to make deposits and place wagers conveniently.

Notably, some bookies will require account verification when signing up. But others will demand it only when the bettor requests a withdrawal. With that said, offshore betting apps in South Dakota are pretty reliable and will occasionally offer users goodies to maintain loyalty. The only problem is that in case of issues like failure to pay out winnings, the state of South Dakota cannot intervene.

Getting started - Step-by-step

Aside from banking options and the wagering markets, most South Dakota apps work similarly. When a bettor wants to start, the process is the same for most apps.

Here is the general procedure to follow:

1. Sign up 

   — Visit the bookie’s official website and click the Sign-Up button. This launches a registration dialogue that each player must fill out before submission. Most bookmakers will require bettors to validate the information provided.

2. Download the preferred sports betting app — Upon registration, the bettor should download the sportsbook app from the link on their official website. This link leads each user to the app version compatible with their device.

3. Make a deposit — fund your account — Each bookmaker supports different banking options. In this stage, the bettor can choose the payment gateway that is more convenient for them.

4. Claim offered bonuses / free bets — After making a qualifying payment, the punter should claim any available free bets and welcome bonuses.

5. Place your bets — The bettor can then proceed to place wagers according to the procedures laid out by the bookmaker.

Bonuses and SD sports betting offers

Bookmakers use bonuses, and other sports betting offers to woo bettors into wagering. Also, these offers motivate punters to continue wagering even when they lose. In South Dakota, sportsbooks usually offer lucrative bonuses, and sports gambling offers to both new and existing customers.

The most common types of bonuses in this state are:

• Matched Deposits — Here, bookmakers match a new user’s initial deposit to a predetermined percentage, mostly up to 100%. BetMGM, for example, offers a matched deposit bonus of up to $1,000 to new bettors.

• No-deposit bonuses — These bonus types are a bookie’s way of appreciating new punters without demanding upfront payments. They are meant to make bettors stick to a bookie.

• Risk-free wagers — In case a punter loses their first-ever bet, the bookie will refund them with free betting credits. BetMGM has such bonuses as well.

Payment methods for depositing

An ideal bookmaker should accept a variety of payment options. This is exactly what offshore sportsbooks offer to customers in SD. The banking options available for residents of South Dakota are the same as those used in neighboring states. This is especially so since bettors in the state still depend on offshore sportsbooks for betting remotely.

As such, offshore bookies offer a wide range of payment options to players in SD. The most popular ones include checks, bank transfers, AMEX (American Express), and in-person cashouts.

Most importantly, Debit and Credit cards like Visa and Mastercard are useful for deposits only. Also, bank transfers are only applicable for withdrawals in some bookies. But whichever means of payment a bettor chooses, security is always a guarantee in South Dakota.

What’s Next For SD Betting Apps?

Citizens and lawmakers in SD seem to be pushing for statewide online sports betting legalization, however, in the recent 2022 election cycle another mobile sports betting proposal was turned down by a house committee. Despite the proposal making it past the senate sports betting will remain only legal within Deadwood casinos for the time being.

Distinguished sportsbooks such as BetMGM are set to launch on mobile in the state if it is ever legalized. BetMGM is an available sportsbook in a retail-only version within a few casinos in the state.

Trusted South Dakota sports betting mobile apps in 2023

As with everything, It is not easy to develop trust in a wagering app. Trust is often based on service efficiency, credibility, markets offered, and real-time user experiences. These areas are significant in gauging a betting app’s trustworthiness. With that criterion in mind, we found the following sportsbooks most trusted in South Dakota.

1. BetMGM — This bookie was established in 2018 when Entain Holdings and MGM Resorts Intl decided to partner. Considering how professional the owners are, it is no surprise that it’s one of the most trusted bookmakers in the US. The app will be a great addition to a bettor’s tech stack whenever they want to place wagers in South Dakota.

2. Bovada — This bookmaker was founded in 2011 to provide gambling services worldwide. The app is already live in many states, and from several reviews, it is also highly reputable in SD. Its high ratings for daily fantasy sports are also worth mentioning.

These two sportsbooks have always delivered what players want in sports betting markets while providing smooth user experiences.