Online SD sports betting resolution passes Senate

South Dakota voters are one step closer to weighing in on whether to expand sports betting to include online.

The South Dakota Senate advanced Senate Joint Resolution 504 on Wednesday, 23-10. SJR 504 would put an online sports betting question on the November general election ballot. The legislation now moves to the South Dakota House.

Voters approved sports betting in the casino town of Deadwood in 2020. Lawmakers restricted wagering to in-person in Deadwood during the 2021 legislative session.

Since launching in September 2021, Deadwood sportsbooks have handled $38.9 million, generating $3.9 million in revenue, according to South Dakota Commission on Gaming reports. Previous legislative testimony suggested monthly online handle in South Dakota could surpass $17 million. In contrast, Wyoming, with 400,000 fewer residents than South Dakota, has reached monthly online sports betting handle surpassing $25 million.

Senator Casey Crabtree, a co-sponsor of the resolution, said its approval would help South Dakotans with property tax relief. The bill does not contain information on fees, taxes or regulations, but it does earmark 90% of the eventual state revenue for property tax relief. It would also require operators to offer their product in concert with a Deadwood casino.

“The proposal ultimately puts more money in the pockets of hard-working South Dakotans,” Crabtree said.

Resolution not without opponents

Through the Senate process, multiple senators spoke up against the industry, largely citing concerns about problem gambling. Others like Senator Amber Hulse said regulation of the industry is a way to set up safety measures and guardrails.

“They’re already doing it on the black market. They’re already potentially making bets that are hurting their families more,” Hulse said, per South Dakota Searchlight. “So why don’t we put some guardrails on it and help protect some families so that there aren’t as many harms being done by this, especially to our communities?”

The legislature approved four other constitutional amendments last session that will be on November’s ballot. Previous attempts to expand online have failed in the legislature. where one lawmaker once equated sports betting to murder and theft.

South Dakota residents already bet online

In addition to betting taking place at the in-person sportsbooks in Deadwood, South Dakotans can also travel across state borders with Wyoming and Iowa to place online wagers. Crabtree told the chamber there are 55,000 registered online sports betting accounts with Wyoming addresses.

There were 103,000 geolocation pings from within two kilometres of the South Dakota and Iowa borders during the 2025 NFL season, according to GeoComply data presented during a committee hearing earlier this year.

Lawmakers also expressed concern over the prevalence of black-market online operators and the emergence of prediction markets.

Pat Evans

Pat covers the legislation and regulation of online gambling in North and South America, having covered the US sports betting industry extensively since 2019.