South Dakota Blocks Online Sports Betting, Leaving Sioux Falls Residents Frustrated

South Dakota legislators rejected a proposal to place online sports betting on the ballot for 2026, meaning the state will remain without it for at least another two years.

Senate Joint Resolution 504, which had passed the upper chamber of the South Dakota legislature, was defeated in committee in the state House. Rep. Greg Jamison (R-Sioux Falls) had championed the legislation in the House, but could not find much support in committee. The bill died by an 11-2 vote, not even making it to the full South Dakota state House.

Sen. Casey Crabtree (R-Brookings) had managed to push the bill through the South Dakota Senate, but House members expressed concern that legalizing online sports betting in the state would lead to more problems than solutions.

What is The Status of Sports Betting in South Dakota?

In 2020, voters in South Dakota amended the state constitution to permit on-site sports betting at casinos located in the city of Deadwood, as well as on tribal lands. That has proven inconvenient for many of the state’s residents, as Deadwood sits 385 miles from Sioux Falls, the largest city in South Dakota.

Complicating matters is the fact that neighboring Iowa permits mobile sports betting, and the Iowa state line is just 12 miles away from the center of Sioux Falls. With almost 25% of the state’s residents calling Sioux Falls home, the majority of sports bettors in the state are simply driving across state lines and spending their money in Iowa.

That’s why Jamison and Crabtree opted to throw their support behind such legislation. With South Dakota currently ranking last among states that allow sports betting in tax revenue, both lawmakers wanted to see that money stay within the Mount Rushmore State.

“This mobile sports wagering is currently occurring in our state,” Jamison told the South Dakota Searchlight. “It’s just either getting done illegally or across or near an imaginary line in the dirt.”

Oddly, some legislators took that as a reason not to expand legal sports gambling in South Dakota. Sen. Joy Hohn (R-Sioux Falls) questioned whether this was the right move, given that the state ranks second in gambling addiction.

How Would SJR 504 Worked?

South Dakota governor Larry Rhoden has opposed sports betting since his days in the state legislature, and his stance has not changed. However, South Dakota’s laws make Rhoden’s opinion irrelevant, as this question would be decided by voters.

Were the resolution to pass both chambers of the legislature, the question would have gone on the ballot in November. Legislators can try again in the future, but there’s a potential problem in the form of House Joint Resolution 5003.

That bill, passed by both chambers of the legislature in 2025, will ask South Dakota voters whether to raise the necessary threshold for amending the state constitution to 60%, instead of the current 50% +1. If voters approve the amendment, any future legal sports betting bill in South Dakota would need 60% approval to pass.

What’s The Future of Sports Betting in South Dakota?

With the legislation tabled by the House, sports betting in South Dakota won’t happen until at least 2029. Such a question could next go on the ballot for the 2028 election, via passing both chambers of the legislature in either 2027 or 2028’s session.

Deadwood’s casinos will remain the primary option for legal betting in South Dakota, with tribal casinos also available. But for the foreseeable future, the state will continue to collect no revenue from online betting from its largest population center.