South Dakota’s latest attempt to expand sports wagering beyond casino floors has stalled after a closely divided committee vote, though supporters say the proposal could resurface before lawmakers adjourn.
The South Dakota House State Affairs Committee voted 7-6 against advancing Senate Joint Resolution 504, a measure that would have placed statewide mobile sports betting on the November ballot. Lawmakers first declined to amend the resolution and later voted 11-2 to defer it past the final day of the session, effectively ending its path for now. Earlier this month, the South Dakota Senate approved the resolution by a 23-10 vote.
Divided Views In Committee
Voters authorised sports betting in 2020, limiting wagers to casinos in Deadwood. The state constitution originally banned games of chance before allowing exceptions for Deadwood gambling and video lottery.
Committee Chair Rep. Scott Odenbach said he backs destination gambling tied to tourism but opposes mobile expansion.
“I’m all for destination gambling in Deadwood. That’s good, clean fun, and the wider net effects on South Dakota tourism are positive,” he said. “But I think this measure runs the risk of putting us at risk of an addictive form of gambling.
“Our original constitution prohibited us from any game of chance and the only exceptions we have are Deadwood gambling and video lottery. I have too much fear people will sit on their couch and say they don’t need to go to Deadwood. Long term, this isn’t for the best.”
Industry sources have suggested lawmakers could attempt to revive the issue through an amendment to another bill before the session ends.
Backers Point To Demand And Tax Revenue
Supporters argued that residents already place bets online through offshore platforms or in neighbouring states. Rep. Greg Jamison said the state could raise up to $5 million annually. Sen. Steve Kolbeck described a “flood of money” leaving South Dakota as bettors travel to Iowa and said additional revenue could support property tax relief.
“If you think we should fight and compete, we should give it to the voters,” Kolbeck said. “If they approve it, we can put guardrails around it.”
Caleb Arceneaux of the Deadwood Gaming Association supported regulation, citing consumer protections. John Pappas of GeoComply reported 1.6 million geolocation checks from 55,000 accounts attempting to access legal sportsbooks in other states.
Tribal Concerns Raised
Some tribal representatives opposed the resolution in its current form. Frank Star Comes Out, president of the Oglala Sioux Tribe and chair of the Great Plains region and its 17 tribes, said the proposal should explicitly ensure tribal participation.
“We do support it, but with amendments,” he said. “Tribes in South Dakota should be included in any opportunity to provide online sports betting on equal footing with Deadwood casinos.”
He added that consultation with tribes remains essential when the state considers gambling policy. Several religious organisations also testified against SJR 504.
Although the committee vote blocks the resolution from reaching voters this year, supporters have not ruled out another attempt before the session concludes.
Source:
“South Dakota online sports betting rejected in House, but not for good”, igamingbusiness.com, February 26, 2026
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