South Dakota Lawmakers Push for Statewide Mobile Sports Betting
South Dakota legislators have introduced Senate Joint Resolution 507 (SJR 507), aiming to expand sports betting beyond Deadwood. If approved, the measure would allow mobile and online sports betting statewide. However, voters must approve the amendment in a potential referendum set for November 2026.
Expanding Sports Betting Beyond Deadwood
Right now, sports betting is only legal in Deadwood casinos. SJR 507 seeks to extend access statewide through online and mobile platforms. However, all licensed mobile operators must partner with a Deadwood casino, and their servers must remain in Deadwood.
This model mirrors states like Rhode Island and Connecticut, where casinos oversee online betting operations. Supporters believe this approach protects Deadwood’s gaming industry while allowing the state to modernize its sports betting laws.
Tax Revenue and Economic Impact
A major selling point of SJR 507 is how it would allocate tax revenue from mobile sports betting. The bill directs 90% of the tax revenue toward property tax relief. The remaining 10% continues funding historic preservation and tourism efforts in Deadwood.
Supporters argue that legal mobile betting could boost South Dakota’s tax revenue. However, critics question whether the population size can generate meaningful profits. With neighboring states like Iowa already benefiting from mobile wagering, proponents see SJR 507 as a way to keep gambling dollars within South Dakota.
Legislative Process and Voter Approval
For SJR 507 to take effect, it must pass both chambers of the South Dakota Legislature. If lawmakers approve it, the proposal will go to a statewide vote in November 2026.
This process follows the 2020 voter-approved amendment that legalized retail sports betting in Deadwood.
However, a 2022 attempt to legalize mobile sports betting failed in the legislature due to concerns over problem gambling and potential competition with Deadwood casinos.
How South Dakota Compares to Neighboring States
South Dakota is falling behind nearby states that already offer mobile sports betting. Iowa, Wyoming, Montana, and Nebraska have either fully legalized online betting or are expanding retail sportsbooks.
Since Iowa launched mobile betting in 2019, gamblers have placed over $5 billion in wagers. With South Dakota’s current limitations, many residents cross state lines or turn to unregulated offshore sites. Supporters of SJR 507 want to keep that revenue within the state.
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