A new bill has been introduced in South Dakota that would allow voters to decide whether to legalize online sports betting in the state.
A group of 10 lawmakers introduced Senate Joint Resolution 504 on Friday. The legislation proposes allowing the state’s casinos to accept online wagers.
South Dakota allows casinos to operate only in Deadwood, where there are 22 licensed venues. At the moment, residents have to place wagers in person at the casinos.
The state has not explicitly authorized esports betting at the casinos, but expanding into online wagering could also expand betting options.
The proposal would allow residents outside the city to wager on sports through online platforms. Major sportsbooks such as DraftKings and FanDuel, which offer esports betting, could obtain licenses to launch in the state if they partner with a licensed casino.
If the legislation is approved, it would go to a public vote at the next general election in November this year.
A similar bill was filed last year, but the state’s Senate Commerce and Energy Committee tabled the resolution despite an 8-0 favorable vote.
The legislation proposes that 90% of tax revenue from online sports betting be allocated to property tax relief, reducing property taxes statewide.
Deadwood Benefiting From Legal Gambling
The money collected from gaming at Deadwood’s casinos would continue to go towards the restoration and preservation of the city.
Deadwood was the first small community in the U.S. to seek legal gambling revenue to maintain local historic assets. The state legalized casinos in the city, which had a population of just over 1000, in 1989.
At that time, gambling was only legal in Atlantic City and Nevada. The city has collected substantial revenue from the commercial casinos. In 2024, casinos generated around $151.9 million in revenue, up from the previous year.
The latest figures from the Deadwood Gaming Association showed revenue hit a record high of over $10 million in November. This was an increase of 10% from November 2024. Up to the end of November, overall revenue was up 2.7% for the year.
States Considering Legal Online Betting
With sports prediction markets expanding last year, US residents can effectively legally wager on sports in all states. Platforms such as Kalshi and Polymarket offer an increasingly diverse range of sports betting, including markets on all major esports events.
States with no legal online market may increasingly look at changing that. In addition to South Dakota, lawmakers in Mississippi and Nebraska have introduced bills this year that would legalize online wagering.
Sen. Casey Crabtree introduced the legislation in South Dakota both this year and last year. He has spoken about the need for the state to generate additional revenue to ease the big issue of property taxes.