South Dakota Considers Yankton Casino, Sports Betting

South Dakota voters could have the chance to approve a Deadwood-style casino in the proposed entertainment district (l.) in Yankton and whether Deadwood and tribal casinos may offer sports betting. A Yankton casino measure failed last year, but this year's version would direct funds to veterans causes. Both issues would require a statewide referendum to amend the state constitution.

South Dakota Considers Yankton Casino, Sports Betting

In South Dakota, state Senator Bob Ewing has sponsored legislation that would allow voters to determine if Yankton should have Deadwood-style gambling. Ewing also sponsored a measure that would legalize sports betting at Deadwood and tribal casinos.

A bill to bring casino gambling to Yankton failed in the Senate in a 23-12 vote last year. But this year’s effort offers a new twist: two-thirds of the revenue generated by casino gambling would be directed to veterans causes and one-third would go to local historical and tourism development. The facility would be located in the proposed Port Yankton entertainment venue, featuring a casino, hotel and convention center.

Currently under the state constitution, casino gambling only is allowed in Deadwood. Eight of the nine tribal governments in South Dakota also offer casino gambling on their reservations. A voter referendum would be required to change the state constitution to allow one gaming license to be issued to a Yankton non-profit organization. Yankton Area Progressive Growth officials said they’ll conduct a poll to measure public opinion regarding a casino, followed by a petition drive to place the issue on the ballot.

Supporters noted South Dakotans already spend a lot of money at casinos in Sioux City and Larchwood, Iowa, both on the Iowa-South Dakota state line. Opponents said a Yankton casino would be an immoral expansion of gambling. Deadwood and tribal gambling interests also are expected to object to the competition. However, dedicating a large portion of casino tax revenue to veterans could give the proposal an edge this year, observers said. Deadwood revenue primarily goes to historic preservation.

Also in South Dakota, the Senate State Affairs Committee voted 5-4 to approve legislation allowing voters to determine if sports betting should be permitted in historic Deadwood and tribal casinos. The proposal now goes to the full Senate.

Deadwood Gaming Association Executive Director Mike Rodman said sports betting would be a marketing opportunity that could help the city during its off-peak seasons. But Revenue Department Deputy Secretary David Wiest opposed the measure, noting regulation costs would exceed revenues generated.

If the issue is approved on the 2020 ballot, sports betting could be available by July 2021.