South Dakota’s Senate on Wednesday passed a measure that would send the decision to expand sports betting to include online platforms to the voters. SJR 504 was approved, 23-10, and will now be sent to the House. The bill passed through the Senate Taxation Committee last Friday.
Should the House approve the measure, it will go before voters Nov. 3, and would need a simple majority to pass. Voters will be approving that the following language be added to the state Constitution:
It is lawful for the Legislature to authorize by law wagering on sporting events by individuals located within and outside the city limits of Deadwood, by means of a mobile or electronic platform, provided the mobile or electronic platform is offered by or in partnership with a licensed casino and the platform has its servers located within the city limits of Deadwood. Ninety percent of the proceeds from all taxes imposed on wagering on sports events by means of a mobile or electronic platform must be used for property tax relief or to reduce property taxes in this state.
The proposal doesn’t include a framework, and should it pass, the legislature would be tasked with developing one, and the South Dakota Gaming Commission would then craft regulations.
Betting already happening on black market
Proponents of the constitutional amendment pointed to increased tax revenue for the state, and said that South Dakotans are already betting online, either on the black market or in neighboring states like Iowa.
During the Taxation Committee hearing last week, John Pappas, on behalf of geolocation service GeoComply, told senators that the company logged 1.6 million geolocation checks from 55,000 people in South Dakota in 2025, and shared a heat map of a spot just over the Iowa border where consumers go to wager. Per GeoComply, nearly 7,000 people crossed state borders to bet during the 2025 football regular season, and 93% of them went to Iowa.
Sen. Amber Hulse, who revealed at the hearing that her family suffered from her father’s gambling, said that while she’s not a supporter, she’d rather see those with addictive tendencies playing in a regulated market.
“You can’t legislate morality, but guess what? These people are already doing it,” she said during floor discussion Wednesday. “They’re already doing it on the black market. They’re already potentially making bets that are hurting their families more. So why don’t we put some guardrails on it and help protect some families so that there aren’t as many harms being done by this, especially to our communities?”
On the other side, Sen. Joy Hohn said that studies show that South Dakota is the “second most gambling addicted state” and asked her peers, “Is this really how we want to fund our government?”
