Bill to Allow Online Sports Betting in SD Gets Shut Down

South Dakota Mount Rushmore Rejecting Sports Betting

  • South Dakota officially voted to legalize sports betting in November of 2020. 
  • The current laws will only allow for land-based sports betting to be done in tribal casinos.
  • A bill to allow online sports betting in SD was shut down by the House Taxation Committee this week. 

The US sports betting industry continues to expand. For months, lawmakers in the state of South Dakota have been pushing to allow sports bets to be made online. Unfortunately, a bill to approve online sports betting in SD has been shut down.

It’s extremely disappointing news for a huge number of individuals here. Many lawmakers also feel this will end up delaying the state from earning some much-needed revenue. Today, we’ll discuss why this bill has been rejected.

Let’s get into it!

South Dakota’s Sports Betting Industry is Still Coming Together

Since PASPA was struck down in May of 2018, more than half the United States has chosen to legalize and regulate sports betting. This is somewhat surprising when considering the country’s gambling industry before PASPA’s removal. Many of the states that now allow sports betting have historically been anti-gambling.

The money earned from this industry is proving to be good to pass up. Sports betting is now extremely popular around the United States. Many states continue to see massive revenue and sports betting handles every single month.

South Dakota’s lawmakers began looking into the legalization of this industry right away. All of the bills initially presented to regulate it were shut down. State leaders were unhappy with the tax-revenue plans being set.

Finally, in November of 2020, a bill made its way to the voting ballots and was passed unanimously. As of now, the plan is only to allow land-based sports betting on tribal land. Many are complaining and feel online sports gambling should be allowed here, as well.

The states with online gambling options are earning far more revenue than ones only allowing land-based sports betting. Don’t expect to see any online sportsbooks launching in South Dakota in the near future, though.

A promising bill to get online gambling options here has just been shut down. Here’s what we know about this situation.

Committee Shuts Down Bill to Approve Online Sports Betting in SD

South Dakota voted to legalize sports betting just a few months ago. Interestingly, the state is already looking to expand on this industry. Not long ago, State Representative Tom Pischke presented HB 1231 that would allow for online sports betting in SD.

This bill has just been rejected. This week, the House Taxation Committee officially voted 11-1 against this bill. It was a disappointing blow for many residents here that were hoping to bet on their favorite sporting events over the internet.

Several prominent officials in the gaming industry were supporting this bill. That includes Garrett Gross, who pointed towards Iowa’s unregulated sports betting industry as a sign of what is happening in South Dakota. He believes that by approving online sports betting, the state will see a huge revenue increase.

David Wiest, an official within the Department of Revenue, believes sports betting should be limited to the Deadwood Casino.

“Technology doesn’t change the words of the constitution,” Weist said. “That is something quite frankly none of us can do.”

That is not necessarily the case. South Dakota residents voted to change the state constitution to allow land-based sports betting. The same could be done to allow for online sports betting, too. Residents will now need to wait a little longer for a new bill to be presented here.

Which States Are Set to Legalize Sports Betting in 2021?

Some were surprised to see South Dakota approved a sports betting bill last year. This state only allows tribal casinos to operate and is making a big change with sports gambling regulation. Of course, it seems likely that most states around the country will have a legal sports betting industry set in place by 2025.

Arizona is working hard to get its sports betting industry up and running. An amended sports gambling bill was passed here this week. This means it’s only a matter of time before the bill makes its way to the Governor’s office.

Lawmakers in Maine are also set to discuss the legalization of sports betting soon. A committee to study this new industry was formed in 2019. It seems highly likely that a bill to allow at least land-based sportsbooks will be approved here before the end of 2021.

Nebraska is also moving towards the legalization of sports betting. Thanks to a new constitutional amendment made last year, the state has the ability to regulate sports gambling. An official sports betting bill has yet to make any progress here, though.

It doesn’t appear that online sports betting in SD will become available in 2021. It won’t be long before lawmakers realize this is a mistake. New York, for example, is finally working to allow online sports betting after its land-based sportsbooks failed to generate any significant revenue.

Are you surprised to see South Dakota pushing against online sports betting regulation? When do you think this will change? Let us know in the comments section below.

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