South Dakota Lawmakers Push to Put Online Sports Betting on 2026 Ballot

Senate Joint Resolution 504 would allow residents to decide whether to legalize mobile sports betting, with 90% of generated revenue earmarked specifically for property tax reduction. The initiative reflects growing momentum across the United States, where more than 30 states have already authorized online sports wagering and are collecting millions annually in tax proceeds.

Targeting Revenue Retention and Tax Relief

Supporters argue that legalization would enable South Dakota to capture funds currently flowing to neighboring jurisdictions with established online betting markets. By regulating mobile wagering within state borders, proponents believe the measure could create a new, dedicated revenue stream while addressing one of the state’s most debated fiscal issues: property tax burden.

Under the proposal, all wagering platforms would be required to host their servers within the city limits of Deadwood, reinforcing the historic gaming hub’s central role in the state’s regulated gambling framework.

If voters approve the constitutional amendment, the state legislature would then determine key regulatory details, including the applicable tax rate on operator revenues and broader compliance requirements.

A Growing National Trend

The discussion mirrors a broader national expansion of digital wagering. States that have embraced mobile sports betting have reported consistent tax inflows, often earmarked for education, infrastructure, or tax relief programs.

Data cited during legislative debate indicates that in 2025 alone, approximately 55,000 individuals in South Dakota attempted to engage in sports betting activity, underscoring existing consumer demand. Advocates say a regulated system would not only generate public revenue but also provide oversight and consumer protections absent in unregulated channels.

Governor Larry Rhoden has historically opposed gaming expansion during his tenure as a legislator but acknowledged that the current debate involves broader fiscal considerations. Because the measure is structured as a constitutional amendment, the decision ultimately rests with voters rather than the governor’s office.

Opponents have raised ethical concerns, cautioning that gaming expansion could extend beyond its initial tax-relief intent. However, supporters maintain that clear constitutional guardrails and revenue earmarking provide a transparent framework.

If Senate Joint Resolution 504 advances to the ballot and receives voter approval in 2026, South Dakota would join the majority of U.S. jurisdictions that have embraced regulated online sports wagering—potentially unlocking a new source of recurring revenue while reinforcing Deadwood’s position at the center of the state’s gaming industry.