South Dakota Senate Wants Public Vote on Mobile Betting

Lawmakers in the Mount Rushmore State are considering letting the public decide whether to expand online sports betting.

The South Dakota Senate passed Senate Joint Resolution 504 this week, by a vote of 23-10. The bill would allow residents to vote on expanding online sports betting during the November 2026 election. Retail sports betting has been legal in Deadwood and tribal lands since 2021, but attempts to add mobile betting have all failed.

While SJR 504 still needs House approval, there is hope it will pass with voter approval. One reason is the bill’s requirement that 90% of the industry's tax revenue be used for property tax relief. That means all residents would benefit from the industry, though the amount each would receive is unknown.

While the Senate has been supportive of mobile betting, the casino industry has stood firm against it. Deadwood is a gambling capital in the US Midwest, and it can’t afford to suddenly see a sharp drop in visitors. SJR 504 proposes linking the mobile industry to the city's casinos, hoping to soften their opposition. 

South Dakota does not require the Governor to sign off on SJR 504, meaning it will only need approval from the House.Will Opposition in the South Dakota House Hold?

Unlike past debates in the House, this year’s discussion on mobile sports betting will need to account for prediction markets. The new industry has grown rapidly over the past year, prompting several sports betting and DFS giants to launch their own prediction platforms. 

Prediction markets are not considered to be gambling, meaning operators are not subjected to the same regulations and taxes. It also allows them to operate in all 50 states, including South Dakota. 

In the past, proponents of mobile betting have warned that residents are finding ways to bet on sports. Offshore sportsbooks are still available, and some bettors are traveling to neighboring states to place their wagers. While both arguments hold some truth, it is hard to determine how common they are and how much they are costing South Dakota.

Prediction markets will provide clear metrics showing how many South Dakota residents are betting on sports. Those stats will carry far more weight in the debate over mobile sports betting, and could lead some opponents to wonder if banning it is actually effective.