South Dakota sports betting is coming soon, but it will only be offered on a very limited basis. Voters in the state approved a ballot referendum in 2020 that would legalize sports betting being offered in Deadwood.
South Dakota online sports betting was not a part of that referendum, and it will not be available when the industry launches. Lawmakers in the state could seek to try and change those rules, but it would have to be considered a longshot at this time.
Tribal nations in SD can also choose to offer sports betting, but gaming compacts will have to be amended before that is the case. South Dakota sports betting is not expected to be one of the biggest markets in the country, but it will provide betting options for residents.
South Dakota is not known for its sports landscape, and that is another factor that could keep the handle and revenues low. An official launch date has not yet been announced, but SD sports betting could launch before the end of 2021.
South Dakota Sportsbooks
All of the South Dakota sports betting will have to be done at one of the commercial or tribal casinos within the state. Deadwood, SD is home to all of the legal commercial properties, and these will be the first to obtain a license and offer betting.
South Dakota online sports betting will not be offered in 2021, and it might not ever be offered in the state. Voters simply agreed to approve retail sports betting, and it would take another constitutional amendment to allow for online or mobile betting.
Not having any online sports betting options is a huge blow to South Dakota as states such as Montana sportsbooks and Iowa sportsbooks do offer that form of wagering. This could also keep some of the top sports betting operators out of the state unless they are able to partner with a current casino.
In-person registration will be required when SD sports betting launches, but there will not be a limit on how many accounts one customer can create. Visitors from out of the state are also able to create a sports betting account, but all betting will have to be done on-site.
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SD Sports Betting Rules
When voters in the state of South Dakota approved sports betting in November, they did so without any other rules put in place. Now that the residents have given their support, lawmakers will have to pass laws in 2021 to help guide the industry.
One of the most important tasks of the SD state legislature will be to determine what betting markets will be available in the state. Professional sports will be included, and the top international sports should be included as well.
South Dakota does not have any professional sports teams, and that could cause lawmakers to allow for betting on collegiate sporting events. This has turned into a big debate in states that have legalized sports betting, and each state has taken a different or unique approach.
Esports is another betting market that is currently being offered in some states while being illegal in others. There is a chance that SD sports betting could include esports betting markets, but lawmakers will have to determine if that is a route that they want to take.
All of these SD sports betting rules will be established before licenses are issued and sports betting is offered.
SD Sports Betting Regulations
In 2018, South Dakota legislators began the process of attempting to legalize sports betting. Voters in the state would have to approve of any measure, but it first required that a bill would pass to get a referendum on the ballot.
In 2019, SJR 2 passed through the Senate, but the House was not able to get enough support to keep the legislation alive. A similar bill was filed in 2020, but this time there was enough support to get the bill passed.
SJR 501 passed through the House by one single vote, leaving the decision on legalizing sports betting up to the voters in the state. The constitutional amendment was passed during the November vote, and now it is up to lawmakers to come up with rules and regulations to govern the industry.
One of the first steps will be to determine which group or organization will oversee or regulate sports betting. The South Dakota Commission on Gaming is a probable candidate, but nothing has been made official as of January 2021.
Determining the cost of sports betting licenses and the tax rate on sports betting revenue is another question that will need to be answered before SD sports betting launches.
Summary
South Dakota sports betting is expected to launch at some point in 2021, but this market will be extremely limited. While other states have seen huge online sports betting numbers, that form of betting has not been legalized in SD.
The casinos in Deadwood will feature retail sports betting, and South Dakota casinos are expected to do the same as well. These casinos will be looking to partner with a sports betting operator, but there is no chance to offer a mobile app.
South Dakota sports betting will not become one of the biggest markets in the US, but it will provide a revenue boost to a city and state that could use one. This state is not known for a deep culture of sports, but sports betting will be available to both residents and visitors of the state soon.
