South Dakota has taken a major legislative step toward potentially legalizing online sports betting. On Wednesday night, the state Senate approved Senate Joint Resolution 504 with a 23-10 vote, advancing the measure for final passage in the chamber. The resolution, co-sponsored by Sen. Casey Crabtree, would allow South Dakotans to vote on whether to authorize mobile sports wagering through a constitutional amendment this November. Unlike standard bills, SR 504 does not require the governor’s signature to reach the ballot.
Guardrails and Consumer Protections in Focus
SR 504 seeks to extend the state’s existing sports betting framework, which currently permits retail wagering at commercial casinos in Deadwood and two tribal casinos outside the city. South Dakota previously authorized in-person casino sports betting via a constitutional amendment in 2020, following a model similar to the one proposed for mobile wagering. While the resolution does not stipulate specific tax rates or consumer protection rules, the legislature would draft these provisions if voters approve the measure.
Crabtree emphasized the role of oversight during the Senate hearing, stating, “If they [voters] say yes, this body gets to decide every detail on how this works and gets to place in every guardrail and every safety net that you find necessary.” Support also came from Sen. Amber Hulse.
The proposal also prioritizes funding for property tax relief, directing 90% of tax revenue from online wagering toward reducing property taxes. Crabtree noted, “The proposal in front of you is about property tax relief… This revenue is already being generated in our state, but it is leaving our borders and going to the benefit of surrounding states.”
Nebraska Petitions Clear for Signature Collection
Meanwhile, Nebraska has cleared the final language for two petitions aimed at legalizing and regulating online sports betting, allowing signature collection to begin. Lynne McNally, government relations director at WarHorse Casinos, explained that circulators would target major events, post offices, and licensed casinos across the state, including Omaha, Lincoln, Grand Island, and Ogallala.
One petition seeks a constitutional amendment to legalize online wagering, while the other proposes statutory changes and operational rules. Both require platforms to maintain servers in Nebraska, with a maximum of two platforms per casino. Companies such as DraftKings, FanDuel, BetMGM, and Caesars Sportsbook must submit operational controls for approval by the Nebraska Racing and Gaming Commission. The commission is also tasked with issuing rules for online betting by June 1, 2027.
Petition organizers face signature thresholds of 10% of registered voters (around 125,000) for the constitutional amendment and 7% (about 88,000) for the statutory changes. Additionally, both measures must meet geographic distribution requirements, achieving at least 5% support in a minimum of 38 of Nebraska’s 93 counties. Signatures are due by July 3, four months before the general election.
These developments in South Dakota and Nebraska indicate growing momentum for online sports betting in the Midwest, reflecting both regulatory ambition and the desire to capture revenues currently flowing to unregulated or out-of-state operators.
Source:
“South Dakota Senate passes bill to put online sports betting to vote”, sbcamericas.com, February 12, 2026
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