South Dakota has become the first US state in 2021 to finalize the sports betting legalization process after Governor. Kristi Noem signed the proposed sports betting legislation into existence on 18 March, 2021.
South Dakota voted to legalize sports betting in November 2020 and it took the next 3 months for things to fall into place and for the bill to get signed. South Dakota will now push hard to get things sorted out so that live sports betting can be up and running before Sep 1, 2021.
When South Dakota voted in Nov 2021 to legalize sports betting, there was no referendum on the ballot outlining how South Dakota would go about regulating the sports betting market. Once it was clear the voters wanted sports betting, a total of four sports betting bills was put forward and only SB 44 was cleared.
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SB 44 does not allow for sports betting to be carried out throughout South Dakota but limits betting action only to Deadwood. The bill allows for both retail and mobile sportsbooks in Deadwood and also for tribal casino operators to offer sports betting at their tribal casinos.
The Indian Gaming Regulatory Act gives tribal casino operators the option to offer all forms of gaming that is approved at state level. This will allow all of the 9 tribal casinos in South Dakota to offer sports betting services. The bill does not allow wagers on any collegiate games.
South Dakota legislators will have to work hard to meet the stiff deadlines that they have proposed to get sports betting up and running. The next step in the process is to have a regulatory framework ready for review by June 16. Legislators will have to work in collaboration with the South Dakota Commission to finalize a betting framework.
The betting framework will include the betting license application process, the criteria to shortlist and finalize licenses, responsible gambling policies and the role and responsibility of the betting regulator which is the South Dakota Commission.
The Deadwood Gaming Association expects over 150 jobs to be created by the legalized betting industry and for South Dakota to bring in over $2.2 million in tax revenue from the betting market. Betting operators will be subjected to a tax rate of 9 percent.
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