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A proposal to expand sports betting across South Dakota through mobile wagering has been halted in the House, though supporters say the idea may return before the legislative session ends.
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The House State Affairs Committee declined to move forward with Senate Joint Resolution 504, later deferring the measure beyond the final day of the session, a procedural step that effectively blocks the legislation this year.
South Dakota voters approved sports betting in 2020, but only within the historic gaming town of Deadwood. Any statewide expansion would require another public vote because gambling parameters are written into the state constitution.
Committee chairman Scott Odenbach, a member of the South Dakota House of Representatives, said he supports destination gaming tied to Deadwood but worries that allowing wagers from home could weaken tourism and increase addiction risks.
Odenbach said:
“I’m all for destination gambling in Deadwood. That’s good, clean fun, and the wider net effects on South Dakota tourism are positive. But I think this measure runs the risk of putting us at risk of an addictive form of gambling.”
He added:
“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.”
Backers of the resolution, including Greg Jamison, House Majority Whip, and Steve Kolbeck, a South Dakota state senator, said residents already place bets through offshore websites or by traveling to neighboring states.
Jamison estimated that a regulated market could generate up to $5 million annually in tax revenue.
Kolbeck pointed to cross border wagering, saying money currently flows into Iowa from South Dakota bettors and could instead remain in state to support public priorities such as property tax relief.
Kolbeck said:
“If you think we should fight and compete, we should give it to the voters. If they approve it, we can put guardrails around it.”
Caleb Arceneaux, president of the Deadwood Gaming Association, testified that unregulated betting channels already exist and lack consumer protections. Industry representatives framed legalization as a way to bring activity into a monitored environment rather than introduce something entirely new.
The South Dakota Senate had already passed SJR 504 earlier in the month by a 23 to 10 vote, showing support in the upper chamber. Industry sources say lawmakers could attempt to revive the concept through another bill amendment before adjournment, though no specific path has been announced.