In an 18-17 vote, the South Dakota Senate recently passed SJR 502, which would let voters decide if the state constitution should be changed to allow online sports betting. The measure still needs House approval to appear on the November ballot. Earlier, the bill advanced out of the Senate Commerce and Energy committee by a 1-vote margin. A constitutional amendment allowing sports bets to be placed in Deadwood passed by a 58 percent majority two years ago.
Governor Kristi Noem has stated her opposition to expanded sports betting and the Deadwood Gaming Association, which pushed for sports betting in the past, did not take a position.
The proposed constitutional amendment would allow players to wager from anywhere in the state through mobile devices or electronic platforms. The bets would be connected to a Deadwood casino, which would be required to keep its computer server within city limits.
Native American tribes also would be allowed to accept online sports bets from anywhere in the state.
State Senator Kyle Schoenfish, the resolution’s sponsor, said, “Anyone in South Dakota right now can spend thousands of dollars building fantasy sports line-ups without breaking the law. Fantasy sports apps have been up and running for years and those proceeds are not subject to South Dakota laws governing sports wagering. Sports wagering and gambling is here and it’s very prevailing, but with this vote we can have it in the smartest and safest manner that will give South Dakota the most benefit.”
He added, “We want people to have their burgers and beverages in Sioux Falls, not Iowa. Or in Beresford instead of Iowa, Vermillion or Yankton, not Sioux City. Rapid City, not Cheyenne, Wyoming. Let’s support the businesses in South Dakota, versus the offshore sportsbook companies that aren’t operating legally.”
Opponents in the Senate said online sports betting should be legalized through a citizens’ petition drive, not through the legislature. Also, some senators argued online sports betting would not help South Dakota businesses like in-person sports gambling does. State Senator Jim Bolin said, “The backers of this resolution have adequate resources to accomplish their goal. They are not small operators, but multi-million-dollar gambling companies. They could easily kickstart a campaign to get the needed signatures for a resolution by petition.”
Other opponents, including state Senator Wayne Steinhaur, expressed concern that greater access to sports betting would lead to more problem gambling. “When you can gamble away the income for your family to put food on the table, that’s a problem. We’re trying to finance our state on the backs of those that have a problem,” Steinhaur said.
