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A new proposal in South Dakota would give voters the chance to decide whether sports betting should move beyond casino floors and onto mobile devices. Lawmakers backing the effort aim to reopen the conversation through a statewide constitutional amendment rather than direct legislation.
The approach reflects ongoing debates in smaller gaming markets where retail wagering exists but digital access remains restricted.
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Casey Crabtree and Greg Jamison are sponsoring Senate Joint Resolution 504, which seeks voter approval to legalize online sports betting across the state. The measure would amend the state constitution, requiring legislative passage before appearing on the 2026 general election ballot.
South Dakota voters already approved sports betting once. In November 2020, the Deadwood Sports Betting Legalization Amendment passed by a margin of 239,620 to 170,191. That amendment limited wagering to retail sportsbooks located at commercial casinos in Deadwood. Retail betting also operates at two tribal casinos run by the Dakota Nation Gaming Enterprise of the Sisseton-Wahpeton Oyate Tribe.
SR 504 would keep Deadwood central to the system. Online sportsbook operators would need to partner with an existing land based casino, and wagering servers would be required to operate within Deadwood city limits. Bettors, however, could place wagers from anywhere within South Dakota.
Revenue distribution stands out as a core feature of the proposal. The measure directs 90 percent of online sports betting tax revenue toward property tax relief. Revenue from retail sports betting would continue funding restoration and preservation efforts in Deadwood.
Property tax relief remains a recurring theme in state fiscal discussions. In 2024, the South Dakota Department of Revenue reported $1.7 billion in property taxes collected statewide.
SR 504 does not define a tax rate for online wagering. Retail sports betting at Deadwood casinos and tribal properties currently faces a 9 percent tax. Since sports betting launched in 2021, South Dakota has collected more than $3.5 million in related tax revenue, including $925,477 during fiscal year 2025.
The resolution received its first reading in the Senate on Jan. 23 and moved immediately to the South Dakota Senate Taxation Committee for further consideration. More than five Republican senators support the measure, though momentum remains uncertain after a similar proposal failed in the House during 2023.
South Dakota joins a broader group of states exploring voter driven gambling expansion. In Alabama, Merika Coleman has announced plans to draft legislation proposing a constitutional amendment that would authorize lottery games, sports betting, and casino gambling. The effort follows projections showing potential General Fund declines in fiscal year 2027.