The South Dakota Senate Commerce and Energy Committee recently voted 5-4 to advance Senate Resolution 502, which would authorize land-based sportsbooks to allow remote sports wagering statewide.
The statue would require sportsbook computer servers to be housed within Deadwood city limits or on tribal lands. The constitutional amendment would appear on the November general election ballot. Currently, sports wagers only may be placed on-site at a casino sportsbook.
State Senator Kyle Schoenfish, sponsor of the resolution, said the state is losing money to other states and illegal betting operations. Seth Pearman, an attorney for the Flandreau Santee Sioux Tribe, agreed. He stated, “We see Iowa siphoning cash all the time for sports betting. The resolution also would protect the substantial investment that a lot of properties have already made to their sportsbooks.” Pearman noted in states where sportsbooks are legal, 80 percent of wages are placed online.
State Senator David Wheeler also supported the resolution. He said, “In South Dakota, we’re for freedom and personal responsibility, and, to me, that means we should not be restricted as we are with sports betting right now. It’s completely legal for you to drive into Iowa and do the same thing. The social ills that come with it already exist.”
“Social ills” were the reason state Rep. Scott Odenbach opposed the resolution. He stated, “I think we really need to stop and think before we add another means of basically addictive gambling in this state for people to do in the back of convenience stores and gas stations while their families go without the money spent on this video lottery 2.0.”
Opposing the resolution was South Dakota Department of Revenue Deputy Secretary David Wiest. He asked the committee why the issue was being pursued through the legislature rather than as a petition initiative. Supporters “need to circulate petitions for signatures just like everyone else,” he said.
However, the South Dakota constitution allows lawmakers to initiate constitutional changes without mandatory signature collections. If a resolution passes both chambers with a simple majority, the issue goes before voters; a three-fifths majority is required for passage.
