Officials and casino owners of South Dakota’s casino town Deadwood are lobbying the legislature to move towards legalizing sports betting when lawmakers convene in January.
This would require that lawmakers put a constitutional amendment on the 2020 ballot. Most state officials concede that an underground sports betting economy already exists in the state. They would like to bring it into the light and tax it.
Larry Eliason, executive secretary of the South Dakota Commission on Gaming told the Brainerd Dispatch how he was sitting in a bar when a man next to him used his phone to make a bet on an NFL game. “Of course, he didn’t know who I was.” He added, “So, we know people in South Dakota bet on sports through bookies now. How much they bet and how many bookies there are, we don’t know. It’s difficult to accurately gauge the extent of any activity that’s illegal.”
The state’s voters legalized limited casinos in 1989 and currently 22 casinos operate in Deadwood. Video lottery terminals are legal throughout the state and there are several tribal casinos.
The proposed constitutional amendment would expand the definition of what is considered legal gambling. It would also allow sports betting at Indian casinos.
Under the proposal the city of Deadwood would get the lion’s share of tax revenues generated by gaming. Currently the city collects $6.8 million annually.
No one is expecting that Deadwood will get a great windfall of cash, but supporters say such an amendment would help the Deadwood casinos to remain competitive, given that sports betting is being legalized at state after state.
According to Mike Rodman, executive director of the Deadwood Gaming Association, “For Deadwood, legal sports betting creates additional opportunities, particularly as it relates to high-visibility contests like the Super Bowl, Sweet 16, Major League Baseball World Series and the college football playoffs.”
Rodman added, “All of those could create excitement, additional marketing opportunities, and would bring people to town. We know the people in South Dakota like sports betting and would like to do it in a legal, safe and regulated manner.” The association has led other successful efforts to expand gaming in the state.
Rodman estimates the state would collect up to $2 million a year in sports wagers.
The effort is also supported by the Flandreau Santee Sioux Tribe. Seth Peaman, an attorney for the tribe, commented: “Sports wagering at the Royal River Casino would diversify the gaming opportunities for patrons, would positively impact their experience overall, and would keep them from leaving the area to legally place wagers,” he said.
