South Dakota Lawmakers to Consider Sports Betting Amendment

It looks like the Mount Rushmore State will take another shot at legalizing sports betting.

A bipartisan group of four South Dakota lawmakers has proposed Senate Joint Resolution 507 to legalize sports betting. If passed, the state’s constitution would be amended to allow for legal sports betting. However, the framework for the industry would need to be approved by the state legislature.

Unlike many other states, South Dakota requires a constitutional amendment to legalize online sports betting. It currently allows for video games and games of chance operated by the state. However, no private entities are permitted to offer any form of gambling.

The constitution's amendment requirement sets a higher bar for legalizing sports betting. The proposal must pass the state legislature and then be approved by voters in the November 2026 election. While some lawmakers and industry proponents believe an amendment shouldn’t be required, they have been unable to circumvent it.

South Dakota currently allows for retail sports betting in the famous city of Deadwood. 

Problem Gambling and Casinos Among Top Concerns

South Dakota has been unable to legalize sports betting due to two significant roadblocks. The first is problem gambling and the impact it would have on residents. The country has seen the issue spiral out of control, and the results have devastated many. Opponents of sports betting point out that a solution to the problem has yet to be found, making legalizing the industry a mistake.

The other roadblock has been the state’s casino industry. Deadwood has been one of the Midwest's betting capitals for decades, and the industry is a key part of the state’s economy. While several sports betting bills have required online operators to partner with casinos, many believe they will only partner with the largest ones. That would leave smaller casinos on the outside looking in, leading to fierce pushback.