South Dakota lawmakers have taken another step toward allowing voters to decide whether online sports betting should be permitted statewide. A newly advanced resolution could place the issue directly on the November ballot if it clears the remaining legislative stage.
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The resolution now heads to the South Dakota House after gaining Senate approval Wednesday. Passage would not immediately legalize digital wagering but would instead ask residents to authorize expansion beyond current retail only betting in Deadwood.
Sports betting has been legal in the historic casino town since voters approved it in 2020. During the 2021 legislative session, lawmakers limited wagering to in person activity tied to Deadwood properties, creating one of the more geographically restricted markets in the United States.
Performance data since launch shows modest activity under that structure. Deadwood sportsbooks have handled $38.9 million in wagers and generated $3.9 million in revenue since operations began in September 2021, according to figures from the South Dakota Commission on Gaming.
Supporters argue those numbers reflect the limitations of a retail only model rather than actual demand. Earlier legislative testimony suggested monthly online handle in South Dakota could exceed $17 million if mobile wagering were allowed.
Regional comparisons continue to shape the debate. Wyoming, despite having roughly 400,000 fewer residents, has recorded monthly online sports betting handle above $25 million, illustrating the scale difference between digital access and location restricted betting.
Framework outlined in the resolution would require any mobile sportsbook to partner with a Deadwood casino, maintaining a direct connection to the existing gaming hub rather than opening a fully untethered statewide market.
Senator Casey Crabtree, a co sponsor of the measure, emphasized financial benefits tied to the proposal.
“The proposal ultimately puts more money in the pockets of hard-working South Dakotans,” Crabtree said.
While the resolution sets a revenue allocation structure directing 90 percent of proceeds toward property tax relief, it does not yet define licensing costs, tax rates, or detailed regulatory requirements. Those elements would be addressed later if voters approve the concept.