South Dakota lawmakers have introduced a measure that could place statewide online sports betting before voters in the November general election. Senate Joint Resolution 504 proposes a constitutional amendment that would expand legal wagering beyond the city limits of Deadwood, where retail sportsbooks currently operate as the state’s sole authorized betting venues.
The resolution was introduced on January 23 and received its first reading before being referred to the Senate Taxation Committee. If approved by the Legislature, the proposal would go directly to voters, who would decide whether to amend Article III, Section 25 of the state constitution to permit wagering on sporting events through mobile or electronic platforms.
Measure Ties Online Wagering To Deadwood Casinos
The proposal allows individuals both inside and outside Deadwood to place online sports bets, provided the platforms operate in partnership with licensed Deadwood casinos. It also requires all supporting servers to be located within city limits, keeping the technical infrastructure anchored to the historic gambling hub.
The amendment outlines how tax revenue from online wagering would be used. Ninety percent of taxes collected from mobile or electronic sports betting would go toward property tax relief or reducing property taxes statewide. Revenue from non-digital wagering would continue to fund Deadwood’s historic restoration and preservation efforts.
Supporters note that South Dakota does not impose a state income tax and argue that directing most sports betting revenue toward property tax relief aligns with the state’s fiscal approach.
History Of Voter Support And Legislative Hesitation
Voters in South Dakota have previously shown support for limited sports betting. In 2020, a ballot measure allowing retail sportsbooks exclusively in Deadwood passed with 58% approval. Retail wagering launched in the city the following year, reinforcing Deadwood’s role as the center of legal gambling activity in the state.
Efforts to expand beyond in-person wagering, however, have faced repeated obstacles. Last year, Senate Joint Resolution 507 sought a similar constitutional amendment with bipartisan backing but failed to advance. Lawmakers cited concerns about gambling addictionhttps://www.realmoneyaction.com/senate-backs-new-military-gambling-addiction-research/ and broader social impacts as key reasons for the bill’s stalled progress.
Senate Joint Resolution 504 revisits the issue with revised language and a clearer framework for revenue distribution, though it remains subject to legislative approval before voters can weigh in.
Comparable Efforts Elsewhere
Other states are considering similar paths. In neighboring Nebraska, retail sportsbooks opened in 2023, but online betting remains illegal. Supporters are collecting signatures to place the issue on the 2026 ballot, with about 125,412 needed by early July.
Beyond sports betting, gambling expansion remains under discussion nationwide. U.S. Senator Tommy Tuberville has said he would support a public vote on introducing a state lottery in Alabama if elected governor, leaving the decision to voters in one of the few states without a lottery.
Whether South Dakota voters will weigh in on online sports betting now depends on the Legislature’s handling of Senate Joint Resolution 504.
Source:
“Senate Joint Resolution 504”, sdlegislature.gov, January 2026
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