In South Dakota, a bipartisan group of state senators introduced SJR 2, which primarily addresses charitable gambling but also includes a paragraph that would legalize sports betting in Deadwood casinos. The measure, which would not allow mobile wagering, would require approval from voters in a statewide referendum. If the bill passes, sports betting also would be allowed at the state’s 11 tribal casinos.
According to the proposed legislation, “The legislature may authorize by law, roulette, keno, craps, wagering on sporting events, limited card games and slot machines within the city limits of Deadwood. The entire net municipal proceeds, adjusted annually for inflation, of authorized roulette, keno, craps, wagering on sporting events, card games and slot machines shall be devoted to the Historic Restoration and Preservation of Deadwood.”
The South Dakota Legislative Research Council estimated sports betting in Deadwood could generate $1,051,972 in revenue and $184,678 in taxes starting in fiscal 2022; total Deadwood gaming revenue would top $100 million. Gross gaming revenue is taxed at 9 percent.
The amendment is similar to a potential 2020 ballot measure backed by the Deadwood Gaming Association. That petition still requires enough signatures to qualify for the ballot, but it could become unnecessary if the bipartisan proposal passes.
A recent article in the Sioux Falls Argus Leader article proposed allowing the South Dakota Lottery to offer sports betting via the state’s video lottery terminals. But Deadwood Gaming Association President Roger Tellinghuisen said the group opposed that proposition. He said, “I can’t argue there wouldn’t be more revenue to the state. But the move you bring up with video lottery, you’re bringing up all of the objections to video lottery as a whole. At least by containing it in Deadwood, it’s just one of several games offered. I don’t think there’s as big of an outcry about problem gaming.”
