Two South Dakota lawmakers are pushing to expand sports betting in the state by legalizing online wagering.
Sen. Casey Crabtree and Rep. Greg Jamison are sponsoring Senate Joint Resolution 504, a proposal that would allow online sports betting through a constitutional amendment. If approved by the legislature, the measure would be on the ballot in November 2026, giving South Dakotans the final say on whether to introduce digital wagering.
South Dakota legalized retail sports betting in November 2020 through the Deadwood Sports Betting Legalization Amendment, which passed 239,620 to 170,191 in a constitutional amendment. The measure allows betting only at commercial casinos in Deadwood, though retail wagering is also permitted at two tribal casinos run by the Sisseton-Wahpeton Oyate Tribe’s Dakota Nation Gaming Enterprise.
Under SR 504, online sports betting operators would be required to partner with an existing land-based casino, and servers would need to be located within Deadwood city limits. Users, however, could place bets from anywhere in the state.
The measure proposes allocating 90% of tax revenue from online wagering to property tax relief. Revenue from retail sports betting would continue to support the restoration and preservation of Deadwood. In 2024, the South Dakota Department of Revenue reported $1.7 billion in property taxes statewide.
While SR 504 does not specify an online tax rate, retail sports betting in Deadwood and tribal casinos is currently taxed at 9%. Since the launch of wagering in 2021, the state has collected more than $3.5 million in sports betting taxes, including $925,477 in FY2025.
SR 504 received its first reading in the Senate on Jan. 23 and was immediately referred to the chamber’s Taxation Committee for a hearing. The proposal has backing from more than five Republican senators but faces challenges after a similar 2023 measure failed to pass the House.
South Dakota is not alone in considering voter-approved gambling measures. In Alabama, Sen. Merika Coleman plans to draft a bill for a constitutional amendment authorizing lottery, sports betting, and casino gambling, in response to projected declines in the state’s General Fund for FY2027.
Original article: https://www.yogonet.com/international/news/2026/02/04/117442-south-dakota-lawmakers-seek-to-legalise-online-sports-betting
