South Dakota’s Senate Advances a Digital Betting Bill

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

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Last updated: February 28, 2025

On February 13, the Commerce and Energy Committee of South Dakota’s Senate passed a bill to legalize digital sports betting. The Senate Joint Resolution 502 (SJR 502) 6-5 was advanced by an 8-0 vote following the legalization of retail sports wagering in September 2021. The bill foresees allowing state operators to offer digital services, with the requirement that the servers be located in Deadwood.

How SJR 502 Would Influence the Status of Gambling in SD

Currently, the South Dakota constitution prohibits lawmakers from authorizing certain games of chance, lotteries, or similar activities. The only exceptions are gambling for charitable reasons, veteran events, or gatherings organized by religious organizations. The legislation allows the state lottery and video games of chance, but gaming or lotteries operated by private companies are strictly prohibited.

Besides that, South Dakota limits gambling activities to within the city borders of Deadwood, and these include roulette, keno, craps, slot machines, and card games. The same goes for sports betting. If the proposed amendment gets approved, residents can place bets outside of Deadwood as well, at retail locations and through mobile apps.

The resolution specifies how mobile and electronic sports betting tax revenue would be distributed – 90% of it would be used for property tax relief across South Dakota. In the meantime, municipal proceeds from games of chance or skill will continue to support the Historic Restoration and Preservation Office of Deadwood.

Previous Online Sports Betting Legalization Attempts Fail

This is not South Dakota’s first attempt to legalize digital sports betting. In November 2020, residents voted and approved Constitutional Amendment B, which permitted sports wagering within Deadwood’s city limits. Retail betting launched in September 2021, and ever since, efforts to authorize online platforms have also been unsuccessful.

Senate Joint Resolution 502 (SJR 502) was introduced in February 2022. It aimed to legalize digital betting on the November 2022 ballot. The proposal passed the Senate with an 18-17 vote but was rejected by the House State Affairs Committee with a 10-3 vote.

Then again, in 2023, House Joint Resolution 5006 (HJR 5006) tried to legalize online sportsbooks through a partnership with Deadwood casinos. The committee approved the bill, but it didn’t get the green light from the House following a 41-28 vote. The main concern was the potential impact on existing tribal gaming venues.

For any updates on the progress of Senate Joint Resolution 502, check our news section regularly.