South Dakota has taken another step closer to the legalization of online sports betting. This week, the State Senate passed SJR 504 with a vote of 23 to 10, officially sending the question of "whether to allow online sports betting" to the November elections for a decision by all voters. Simply put, lawmakers have kicked the ball to the public, letting voters decide whether they want to gamble on their phones. If the referendum passes, operators must partner with Deadwood's physical casinos, and 90% of future state revenue will be used to reduce property taxes. Want to know the latest on sports betting legislation in the US? PASA's official website continues to track referendum dynamics and market data.
From Deadwood to the entire state: An eight-year marathon, finally to a referendum
In 2020, South Dakota voters approved the initiation of physical sports betting in the casino town of Deadwood, and the following year, the legislature further restricted betting to "must be on-site in Deadwood." Since its launch in September 2021, Deadwood sports betting has processed $38.9 million in bets, generating revenue of $3.9 million.
Now, the Senate's vote has brought online expansion to a historic juncture. If the November referendum passes, South Dakota will become another state to shift from "in-person only" to "legally online."
Numbers speak: Online potential far exceeds offline
Data revealed at the legislative hearing clearly shows the vast potential of online gambling:
Neighboring state comparison: Wyoming has 400,000 fewer people than South Dakota, but its monthly online sports betting stakes have already exceeded $25 million
Local estimates: South Dakota's online monthly betting stakes are expected to exceed $17 million
Interstate betting: During the 2025 NFL season, 103,000 geolocation signals were detected within a 2 km radius of the South Dakota-Iowa border
Registered accounts: Wyoming alone has registered 55,000 online gambling accounts with South Dakota addresses
Money and users have already flowed out, and regulators finally can't sit still.
Controversy and support: Tax reduction tool vs addiction risk
During the Senate debate, both sides clashed fiercely:
Proponents (Senator Casey Crabtree): Legalizing online gambling will bring substantial tax revenue, 90% of which will be used for property tax relief, "leaving more money in the pockets of hard-working South Dakotans." Operators are also required to partner with Deadwood casinos to ensure local interests are tied.
Opponents: Several legislators expressed concerns about the risk of gambling addiction. However, legislator Amber Hulse pointed out: "They have already gambled in the black market, which might cause even greater harm to families. It's better to set up safeguards to protect more families."
Previously in the legislature, some legislators compared sports betting to "murder and theft," and opposition has always been present.
Next steps: House review + November referendum
SJR 504 has now been transferred to the House of Representatives for review. If the House approves, the online sports betting issue will officially appear on the November ballot. It is worth noting that this year's election already has four constitutional amendments to be voted on, and the online gambling referendum will join the "crowded ballot."
GeoComply's data has already proven: The demand is real, just the money has flowed to neighboring states or the black market. In November, South Dakota voters will personally decide whether to put these lost bets and taxes back into their own pockets.
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This article is from "PASA-Global iGaming Leader" gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
