South Dakota aimed to include online sports betting in the November referendum through the SJR 504 bill, which was rejected this week by the House State Affairs Committee with 7 votes against and 6 in favor. The committee then decided to postpone the legislation until after the session with a 11-2 decision, effectively declaring the bill "dead" in this legislative session. Simply put, it was just one vote short of passing, but supporters feel it can still be salvaged. The Senate had already passed the bill earlier this month with a 23-10 vote, but the House's rejection brought the process to a halt. However, industry insiders suggest that the bill might be "revived" through subsequent amendments. Want to keep up with the latest developments in sports betting legislation across the US states? PASA's official website continues to track key dynamics.
First, Voting Details: A Single Vote, A Reversed Fate
At the hearing on March 5th, the House State Affairs Committee rejected the motion to advance SJR 504 by a narrow margin of 7-6. Committee Chairman Scott Odenbach refused any amendments to the bill before the vote, and then the committee decided to delay the legislation until after the session with a 11-2 decision, essentially marking the end of the bill in this legislative session.
Odenbach explained his opposition by stating, "I support the gaming in Deadwood, which is healthy entertainment and has a positive impact on South Dakota tourism. However, this measure could lead us into the risk of addictive gambling. I worry that people might sit on their couches and say there's no need to go to Deadwood anymore. In the long run, this is not the best choice."
Second, Supporters' Voices: Money Has Flown Out, Let the Voters Decide
Despite the bill's rejection, supporters argued their case for nearly an hour at the hearing. Proponents Greg Jamison and Senator Steve Kolbeck pointed out that online sports betting is already happening in South Dakota and should be regulated. Jamison claimed that the state government could increase its tax revenue by $5 million annually through this. Kolbeck emphasized that these revenues could be used for property tax relief, while currently, a significant amount of money is flowing out as players cross into Iowa.
John Pappas, a senior consultant at GeoComply, cited data showing that 55,000 accounts attempted to log into other states' legal sports betting, triggering 1.6 million geolocation checks, proving a real demand in South Dakota. Caleb Arthur, president of the Deadwood Gaming Association, also supported the resolution, pointing out that offshore operators and prediction markets lack consumer protection and have taken a large share of the bets.
Third, Tribal Stance: Opposition Excluded
Frank Star Comes Out, representing the Oglala Sioux Tribe on behalf of 17 tribes in the Great Plains region, expressed opposition, not against gambling itself, but because the language of the bill did not clearly allow tribal participation. "We support online sports betting, but amendments are needed to ensure tribes have equal opportunities with Deadwood casinos," he emphasized. The importance of consulting with tribes when dealing with gambling issues is crucial. Several religious groups also testified against SJR 504.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
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