South Dakota online sports betting laws

South Dakota took its first step towards the legalization of sports betting when the state’s electorate voted in favor of it in November 2020.

The state’s governor Kristi Noem signed SB44 into law in March 2021, opening the road to the first sports bets to be placed in the state, possibly as early as September 2021.

However, the South Dakota sports betting industry will be subject to several restrictions. The first is that the only locations where wagering can take place are kiosks and teller windows in the many casinos located in Deadwood – already famous for one gold rush in its history.

Each casino will have to pay an initial licensing fee of $2,000 and an annual fee, also $2,000. While this ensures a lively hub for sports betting, Deadwood is a six-hour drive from Sioux City, the largest city in South Dakota.

That also has implications for people who want to enjoy South Dakota online sports betting.

Bettors in South Dakota will be able to enjoy online betting – but only if they are present on casino premises.

The language of the bill signed by the governor was sufficiently vague to offer hope that, once you had registered in-person for South Dakota online sports betting, you would be able to wager remotely.

However, Mike Rodman, executive director of the Deadwood Gaming Association, later stipulated that geolocation technology will restrict online betting to the casinos’ premises.

Sports betting will also, under the terms of the Indian Gaming Regulatory Act, be available at the state’s tribal casinos, should the tribes choose to amend their gaming compacts with the state to include sports betting.

The South Dakota legislature has set an aggressive timetable for the implementation of legal sports betting. It believes the first bets could be placed as early as September 2021. However, as it stands, there will be no online-only sports betting licenses available, because under the law, only casino operators in Deadwood will be able to apply for permits to run physical sportsbooks inside their establishments. Online wagering will be limited to mobile apps for patrons placing bets within the licensees’ premises.

Yes, they will be. The IRS has made it clear that it considers winnings from all forms of gambling to be taxable.

As a result, you will have to declare any income from gambling on your tax return. You should keep an accurate and up-to-date record of your betting – this will also help you claim back for your losses too.

Any licensed sportsbook you gamble with will issue a W-2G form documenting your winnings over a certain threshold. One copy goes to you and the other to the IRS – so it’s important that your records match.

The sports betting regulations, as drafted, provide that individuals must be at least 21 years of age to wager on sports.

South Dakota online betting has been legalized, but you will have to be physically present at a casino to register for a wagering account and to be able to bet through your device.

This restriction will be imposed by geolocation technology to ensure nobody can place a bet while anywhere else in the state.

You will not be able to place bets on college events involving teams based in South Dakota – whether they are playing at home or on the road. There will be no prop bets on individuals in college matches or betting on high school sports events, or any other sporting event or other event where the majority of contestants or athletes are under the age of 18.

Betting on politics is banned from coast to coast in the US. Therefore, no sportsbook in South Dakota will be able legally to offer prices on events such as elections at home or overseas.