South Dakota Pushes for Mobile Sports Betting Expansion

Could South Dakota be the next state to embrace mobile sports betting? Lawmakers have introduced Senate Joint Resolution 507 (SJR 507), aiming to amend the state constitution to allow online and electronic sports betting. This move could significantly expand the state’s gaming industry while keeping operations tied to Deadwood’s licensed casinos. However, previous attempts to legalize mobile wagering have failed. Will this resolution finally push South Dakota into the era of online sports betting?

South Dakota Pushes for Mobile Sports Betting Expansion with New Constitutional Amendment Proposal

Key Points:

1. SJR 507 Aims to Expand Sports Betting Beyond Deadwood
   • The amendment would allow mobile and electronic betting statewide, with servers located in Deadwood.
   • Operators must partner with licensed Deadwood casinos to offer online sports betting.
2. Tax Revenue Allocation Focuses on Property Tax Relief
   • 90% of tax proceeds from online sports betting would go toward reducing property taxes statewide.
   • The remaining proceeds would continue funding historic preservation in Deadwood.
3. Previous Attempts to Legalize Mobile Betting Have Failed
   • Past proposals in 2022 and 2023 were rejected due to concerns about tribal gaming agreements and regulatory oversight.
   • In 2020, voters approved retail sports betting in Deadwood, but mobile expansion has struggled to gain traction.

South Dakota’s Push for Mobile Sports Betting: A Game-Changer for the Market?

South Dakota lawmakers have once again introduced a proposal to expand sports betting beyond Deadwood, this time through Senate Joint Resolution 507 (SJR 507). If passed, the resolution would allow voters to decide on a constitutional amendment that permits mobile and electronic sports betting across the state.

How Would Mobile Sports Betting Work Under SJR 507?

Currently, South Dakota’s constitution restricts most forms of gambling, except for state lotteries, charitable gaming, and certain casino games in Deadwood. Sports betting was legalized in 2020 but remains limited to retail sportsbooks in Deadwood’s casinos and tribal gaming locations.

SJR 507 proposes a controlled expansion of sports betting by:

• Allowing mobile and electronic wagering from anywhere in the state.
• Requiring operators to partner with a licensed Deadwood casino for regulatory oversight.
• Ensuring all sports betting servers are physically located in Deadwood to maintain compliance.

This model mirrors successful frameworks in states like New Jersey and Michigan, where online betting is legal but tethered to land-based gaming establishments.

Tax Revenue and Economic Benefits

A crucial aspect of SJR 507 is how the state plans to allocate tax revenues from mobile sports betting. Under the proposal:

• 90% of sports betting tax proceeds would go toward property tax relief for South Dakota residents.
• The remaining proceeds from casino gaming (including roulette, keno, craps, and slots) would continue funding Deadwood’s Historic Restoration and Preservation Fund.

Supporters argue that this tax revenue model could provide a significant financial boost while maintaining Deadwood’s economic influence over the state’s gaming industry.

Challenges: Will This Attempt Succeed Where Others Failed?

While SJR 507 marks another effort to modernize South Dakota’s gambling industry, previous attempts to legalize online sports betting have been met with resistance.

Failed Attempts to Expand Sports Betting:

1. 2022 – Senate Joint Resolution 502 (SJR 502)
   • Aimed to place mobile sports betting on the November 2022 ballot.
   • Passed the Senate (18-17) but was rejected by the House State Affairs Committee (10-3).
2. 2023 – House Joint Resolution 5006 (HJR 5006)
   • Proposed a casino-partnered online sports betting model, similar to SJR 507.
   • Passed committee review but was defeated in the House (41-28) due to concerns over tribal gaming compacts.

Opposition from tribal gaming operators and some lawmakers remains a major hurdle. Expanding online betting could impact existing tribal gaming agreements, potentially leading to legal disputes or renegotiations.

Additionally, critics worry that mobile betting could increase gambling addiction rates, arguing that statewide access may lead to higher problem gambling incidents.

What’s Next for SJR 507?

South Dakota’s legislative session runs until June 30, meaning lawmakers still have time to debate and refine the proposal. If approved, the amendment would be placed on the next general election ballot, giving voters the final say on whether mobile sports betting should be legal statewide.

However, given past failures and political resistance, the success of SJR 507 is far from guaranteed. Supporters will need to:

• Address concerns from tribal gaming authorities.
• Educate voters on how mobile sports betting can boost tax revenue and tourism.
• Demonstrate regulatory safeguards to prevent problem gambling.

Will South Dakota Finally Legalize Mobile Sports Betting?

The introduction of SJR 507 represents another attempt to bring mobile sports betting to South Dakota, but significant obstacles remain. While proponents emphasize the economic benefits and regulatory safeguards, opponents continue to raise concerns about tribal gaming compacts and gambling expansion.

With previous efforts failing in 2022 and 2023, lawmakers must overcome political resistance and convince voters that online sports betting is a win for the state. If SJR 507 makes it to the November ballot, it could be South Dakota’s best chance yet to modernize its sports betting industry.

The question now is: Will lawmakers push this amendment forward, or will another effort fall short? The next few months will determine the future of online sports betting in South Dakota.