South Dakota passes resolution to let voters decide on expanding sports betting to mobile wagering

South Dakota passed a resolution last week allowing voters to decide whether to expand the state's gambling laws to include mobile sports betting. Currently, South Dakota residents can only bet on sports at in-person sportsbooks at Deadwood casinos. If the resolution is approved by the legislature, the proposal will be voted on as part of the November 2026 ballot.

Sports betting launched in South Dakota ahead of the 2021 NFL season but was restricted to in-person wagering in Deadwood. There was a push to expand sports betting to include mobile wagers through a proposal in 2022, but that bill died in the state House after opponents made parallels between gambling and more serious crimes.

There is still concern over the impact gambling can have on the community as a whole. Senator Joy Hohn said gambling addicts have a tendency to go into debt, suffer mental health issues and potentially venture into criminal activity. Hohn also said South Dakota is the second-most gambling-addicted state. Other opponents to expanding sports betting to include mobile wagering say South Dakota residents already engage in mobile betting through offshore operators. Those in favor of expansion say sports betting revenue is leaving the state as those interested in making wagers go to Iowa or Wyoming.

If the resolution is passed, there's a mandate for 90% of the tax revenue collected from sports betting to go toward property tax relief. South Dakota currently taxes sports betting at 9%, but the state ranks last in revenue, handle and taxes collected among the states that report sports betting data.