South Dakota is one step closer to potentially bringing legal online sports betting to the state.
On Wednesday night, the state Senate advanced Senate Joint Resolution 504 by a 23-10 vote during a hearing for its final passage in the chamber.
SR 504, co-sponsored by Sen. Casey Crabtree, would allow South Dakota residents to vote on whether to legalize online sports betting in the state through a constitutional amendment. If approved by the state House, the matter would be put to a public vote in November.
Crabtree’s bill does not need approval from Gov. Larry Rhoden to be placed on the ballot.
SR 504 can provide guardrails for online betting
SR 504 aims to bring online wagering to a state that provides residents and visitors with access to retail sports betting at commercial casinos in Deadwood and at the state’s two tribal casinos outside the city. South Dakota previously authorized retail wagering at land-based casinos through a constitutional amendment in 2020 in a similar fashion to what SR 504 proposes for online betting.
SR 504 does not explicitly provide an exact tax rate for online sports betting or exact standards for consumer protections; lawmakers in the state legislature would draft those rules if the measure is approved by the House and garners the support of South Dakotans in November.
“If they [voters] say yes, this body gets to decide every detail on how this works and gets to place in every guardrail and every safety net that you find necessary,” Crabtree told Senate members during Wednesday’s hearing.
The ability for lawmakers to add guardrails to online wagering in South Dakota through the authorization and regulation of the vertical also garnered the support of Sen. Amber Hulse.
“[South Dakotans] are already doing it on the black market,” said Hulse. “They’re already potentially making bets that are hurting their families more. 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?”
South Dakota online betting to support property tax relief
SR 504 does not provide exact tax rates, but the measure calls for 90% of tax revenue from online wagering to be allocated toward property tax relief or to reduce property taxes.
“The proposal in front of you is about property tax relief,” continued Crabtree. “It ultimately puts more money in the pockets of hard-working South Dakotans. This revenue is already being generated in our state, but it is leaving our borders and going to the benefit of surrounding states.”
The South Dakota Department of Revenue reported in 2024 that state property taxes reached $1.7 billion. South Dakota’s current gaming laws impose a 9% tax rate for retail sports betting. A potential tax rate for online wagering in the state is expected to surpass that figure.
SR 504 will now head to the House for further consideration.
