The House Taxation Committee in South Dakota voted down a proposal to allow mobile sports betting, 11-1. Also defeated was a bill to allow restaurants, bars and other locations with on-site alcohol consumption to take bets on behalf of Deadwood casinos.
In November, voters approved a constitutional amendment to permit sports betting in Deadwood, according to KELO.
In support of the proposals, Garrett Gross, from Dakota Gaming Group, said geofencing technology would have ensured bets came inside South Dakota borders. He estimated that South Dakotans bet $30 million per month in Iowa casinos or through the black market.
“These wagers are not tracked, regulated or taxed,” he said.
Sports bettors will continue to go that route rather than drive to Deadwood, Gross said.
David Wiest, deputy secretary for the state Department of Revenue, said none of that matters, that the constitution spells out that gambling—including sports betting—must occur in Deadwood.
The proponents of the internet-betting legislation want lawmakers to expand the exemption for sports wagering statewide without asking the voters on another constitutional amendment, Wiest said.
“That is something quite frankly none of us can do,” he said.
Representative Mark Willadsen, who proposed the restaurant change, required each venue to create a contract with a Deadwood casino and create a kiosk to accept wagers.
South Dakota voters amended the state constitution on November 3 to allow the legislature to establish a system for sports wagers to be made in the city of Deadwood. Wiest said a new amendment would be required to change that.
“We believe that it is clear that the phrase ‘within the city limits of Deadwood’ means that you must physically be in Deadwood to play limited card games, slot machines, roulette, keno or craps, or to place a wager on a sporting event,” he said.
Willadsen’s proposal would have permitted 901 municipal and 219 county bars, 29 convention centers and 37 full-service restaurants to participate.
