South Dakota

Sports betting in South Dakota has been legal since 2021, but bettors in the state are strictly limited to wagering at casinos in Deadwood or tribal casinos. Lawmakers in the state have continued their pursuit of legal online sports betting on a broader scale, but their efforts have continually fallen short.

South Dakota’s sports betting bill has strict rules about what can and cannot be wagered legally. The most crucial restriction concerns online wagering, as placing online sports bets is only allowed when the individual is physically located at Deadwood Casino.

Collegiate sports can be bet on, but wagers on in-state colleges or universities are not allowed. Additionally, betting on minor league or high school sports is strictly prohibited. Bets on politics and eSports are also not offered to bettors in the state. While the online sports betting scene is nearly non-existent, residents of South Dakota can download and use daily fantasy sports apps and racebooks for horse racing betting.

DFS products exist in an unregulated market as the state has neither outlawed nor legalized them. The good news is that residents can enjoy some form of sports gambling from the comfort of their homes.

Online sports betting in Mount Rushmore State

Sports betting was brought to light in South Dakota thanks to the passing of SJR 501. This resolution narrowly escaped the House in 2020, but once it did, it was approved by 58% of voters. This allowed Gov. Kristi Noem to sign SJR 501 in 2021, and shortly after, betting went live on September 9, 2021.

Arguably, the most important or noteworthy regulation of this resolution was that sports betting was only to be offered in Deadwood or at tribal casinos. Gambling was limited to Deadwood and tribal casinos before the passing of this resolution, so sports betting became lumped in with other gambling-related markets.

Mobile betting is allowed in South Dakota, but with a big asterisk next to it. While bettors in the Mount Rushmore state can place mobile wagers, they must be physically inside a retail betting facility. All retail betting facilities in Deadwood can offer their own mobile betting app. Still, residents cannot create an account with that product anywhere outside of the premises of that casino.

Multiple efforts have been made to change the state's sports betting infrastructure in a growing effort to get full-fledged mobile betting legalized. In 2022, a ballot proposal to make online sports betting legal in SD was able to pass through the Senate, but that proposal would die in the House.

Failed proposals did not stop lawmakers from trying again in 2023. Rep. Greg Jamison introduced HJR 5006 during legislative sessions, and after debate on the House floor, this resolution was voted down. Even with another defeat in this area, it's clear that some lawmakers in the state won’t stop until mobile betting is offered over the next few years.

Sports betting & gambling legislation in SD

Based on the rules and regulations laid out by SJR 501, bettors in South Dakota must be at least 21 years old to place a legal sports betting wager. The South Dakota Commission on Gaming enforces this rule, along with all the other laws and regulations for sports betting.

One of the most significant restrictions regarding sports betting in SD is that remote registration is not allowed. Since all wagers online must be placed at a retail location in Deadwood, customers cannot create a mobile betting account anywhere outside the confines of a licensed betting facility. While the lack of online sports betting is a black eye on the gambling market, one of the best aspects of the state's betting infrastructure is that the state does not withhold taxes for gambling winnings.

Heading into 2025, the expansion of sports betting remains a relevant topic during legislative sessions. The state has been losing revenue by not offering mobile sports betting, but the House strongly opposes expansion. One thing that has not been clear is whether or not iGaming will be included on any mobile betting bills, as online casinos and online poker have remained illegal.

Most recent updates from the SD sports betting scene

• December 18, 2024: South Dakota State is listed as a (-3.5) point road favorite over North Dakota State in the FCS semi-finals.

• December 9, 2024: South Dakota will host UC Davis in the next round of the FCS playoffs, and they are (-5.5) point favorites.

• December 3, 2024: In their first FCS playoff game, South Dakota State will host Montana as (-22.5) point favorites.

• November 26, 2024: South Dakota State earned the #3 seed in the FCS playoffs, as they are currently (+210) to win the FCS National Championship.

• November 18, 2024: Legendz Social Casino & Sportsbook launches in South Dakota and 42 states, offering free play, props, parlays, and high RTP for players 18+. Daily rewards and real prize options add excitement.

• November 14, 2024: South Dakota is set to square off with North Dakota, as they are listed as (-12.5) point favorites.

• November 8, 2024: South Dakota State will head on the road this weekend where they are favored by (-15.5) over North Dakota.

• October 30, 2024: College basketball tips off in the coming week, and South Dakota State will open the season as the favorites to be named regular season champs in the Summit League at (+200).

In-person sports betting sites and locations

Since South Dakota state law already confined most gambling activities to the town of Deadwood, that rule carried over to sports betting. As a result, Deadwood casinos could apply for sports betting licenses, giving bettors close to ten locations in the area to place a legal sports wager.

Outside of Deadwood, residents may also be able to find tribal casinos throughout the state that also offer legal sports betting. Lastly, for horse racing fanatics, there is one off-track betting facility in North Sioux City.

Sports betting in neighboring states

South Dakota is in an area where the sports betting scene is limited. Four of SD’s five neighboring states have legal sports betting, but most markets in those states have limitations similar to those in SD.

You can click on their name in the box below to learn more about how each of those states' betting infrastructures are arranged or why Minnesota has yet to pass any sports betting legislation.

Sports betting revenue impact on South Dakota's economy

As we've established, all sports betting in South Dakota is done in Deadwood. For a Deadwood area casino to offer a retail sportsbook, it must apply for a license. If its license is approved, the casino must pay a $2,000 licensing fee upfront and another $2,000 annually. The tax rate for sports betting in SD is one of the lowest in the country, currently at 9%.

Due to South Dakota's sports betting market layout, the state is not a high earner in terms of handle and revenue. Sports betting has been legal since September 2021, but it took SD until October 2023 to surpass over $1 million in handle for a single month. However, in terms of average figures, SD's monthly betting handle usually hangs around $0.9 million, which generally leads to an average monthly revenue of sub $100,000 and under $10,000 tax income each month.

The longer South Dakota struggles to get mobile sports betting fully legal, the more the state's economy will struggle in this area. Of all the states with some form of legal sports betting, SD has made the least amount of handle, revenue, and tax income. This is especially alarming since plenty of the states ahead of SD in those categories have offered sports betting for a very short period of time.

South Dakota sports betting record months:

• Sports betting handle: March 2024 ($1,242,270)

• Revenue: September 2024 ($215,820)

• Tax income: September 2024 ($19,424)

Latest SD sports betting revenue report breakdown (October 2024)

Reported by the South Dakota Department of Revenue.

• Total betting handle: $915,592

• Hold: 5.00%

• Gross revenue: $45,792

• Tax revenue for the state (9% on gross revenue): $4,121

What sports/leagues did SD bettors wager the most in Oct 2024?

1. NFL ($407,992 placed bets)

2. College football ($296,869)

3. MLB ($93,518)

4. NBA ($39,200)

5. NHL ($23,168)

6. MMA/UFC ($20,511)

7. Soccer ($9,491)

8. Tennis ($8,306)

9. WNBA ($6,434)

10. CFL ($5,598)

11. NASCAR ($2,774)

12. Boxing ($520)

13. College basketball (mens) ($455)

14. PGA ($415)

15. F1 ($342)

Recent revenue report data - Compared to the previous year (YoY)

SD sports betting revenue in 2024

South Dakota's monthly sports betting handle, sportsbook revenue, and tax income the state has gained from the operators are presented in the following table. The percentage beside the monthly handle indicates the change compared to the previous month.

Yearly revenue data