South Dakota Online Sports Betting Laws
In South Dakota all roads lead to Deadwood, the only location where sports betting, under the legislation signed into law by its Governor in March 2021, will be permitted. You will also be able to enjoy mobile sports betting on the premises of the town’s casinos.
Administrative law and government relations attorney
Jennifer has a degree in Journalism from Northeastern University in Boston, Massachusetts, and graduated from George Washington University Law School, Washington, D.C, in 2005. She's been living in Las Vegas helping clients in the casino and gaming industry, as well as other regulated businesses, across Nevada for over 15 years.
She has authored and co-authored numerous articles and books on US gaming law, including most recently, The Law of Regulated Gambling: A Practical Guide for Business Lawyers, American Bar Association (2020), and That (Expletive) Broad: Women Who Broke Barriers in the Casino and Gaming Industry (2020).
Is Sports Betting Legal in South Dakota?
Yes, South Dakota online sports betting has been legalized – but only on casino premises in Deadwood so far.
How Old Do I Have to be to Place a Bet in South Dakota?
You will need to be at least 21 to place a sports bet in South Dakota.
As things stand, the only place where sports betting will be allowed in South Dakota is Deadwood, at the town’s casinos, where you will be able to wager in person or register and engage in online wagering on your device while you are on the premises. For online wagering, the sign-up process will be as follows:
Go in person to one of the many casinos operating in Deadwood.
You will need to produce ID and proof of age to sign up for a sports betting account.
Place some money in your account and start wagering.
If you want to bet online, choose the sportsbook you want to use while on the premises.
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.
South Dakota is one of many states that permit Daily Fantasy Sports (DFS) to take place, even though they do so in a legal gray area.
DFS has never been specifically outlawed, but neither has it been legalized. Back in 2015, the state’s attorney general had put out a statement regarding DFS, providing that, “Based upon the current state of uncertainty, including the ongoing debate on whether daily fantasy sports wagering is predominately a permissive game of skill or an unlawful game of chance, it will not be my intent to seek felony indictments here in South Dakota absent a clearer directive from our state legislature.” No action has been taken by a South Dakota legislature or attorney general since. As a result, most major DFS operators, including FanDuel and DraftKings, offer games to the people of South Dakota.
South Dakota is one of the many states without any big four pro teams, but that doesn’t prevent people being interested in DFS. Football, basketball, hockey, and baseball games are all popular in the Mount Rushmore State.
College sport DFS is also permitted, which means the exploits of the Jackrabbits and the Coyotes can be reflected in people’s selections.
Football is the biggest sport in the US, both from a supporter perspective and where sports betting is allowed. Many gridiron fans in South Dakota gravitate towards the Minnesota Vikings, but there is bound to be a high level of interest in matches across the US once South Dakota online betting is allowed.
For most people, any form of gambling is a fun, light-hearted leisure experience. For a small minority, however, it can lead to addiction and financial or emotional problems.
That’s why it’s essential that any state that allows sports betting – or any form of wagering – needs to place an emphasis on the desirability of conducting gambling responsible gambling. That applies both to the facilities that offer betting, and to those who attend as customers.
South Dakota has several agencies to ensure that all gambling in the state takes place responsibly, and that help is in place for people who develop issues.
The people of South Dakota voted to legalize gaming in Deadwood after a “Deadwood – You Bet” campaign by locals who wanted to preserve the famous town’s history.
Gaming starts in Deadwood, only the third legal gaming location in the US after Nevada and Atlantic City.
The Professional and Amateur Sports Protection Act (PASPA) is struck down by the US Supreme Court, allowing states to legalize sports betting.
The first efforts towards legalization don’t go very far.
The House agrees by a single vote to put sports betting on the public ballot in November. It is passed by almost a 60-40 majority.
Sports betting legislation is signed into law – work begins on launching the activity in Deadwood, possibly as soon as September.
South Dakota sports betting has been legalized, and is due to start in 2021, possibly as early as September.
The only locations where South Dakota sports betting will be able to take place, at least initially, are on casino premises in Deadwood, in the west of the state.
The good news is that there are more than 20 casinos in the town – it will be intriguing to see which ones offer sportsbooks and on-site online betting. You can find an up-to-date list here.
The good news is that South Dakota sports betting was legalized in March 2021. It is anticipated that wagering will start at several casinos in Deadwood in September 2021. However, South Dakota online betting will be restricted to casino premises; there will be no South Dakota betting sites, at least for now.
FanDuel is one of the leading providers of Daily Fantasy Sports (DFS) and it delivers games to people in South Dakota – even though DFS has never been specifically legalized. FanDuel also offers a sportsbook and will surely be in the running for a South Dakota online betting license too.
Many people enjoy playing the Daily Fantasy Sports games offered by DraftKings. Even though DFS has not yet been legalized or regulated in South Dakota, it has never been banned. DraftKings also runs a sportsbook and will almost certainly be competing for the chance to offer South Dakota online sports betting too.
South Dakota online sports betting, when it gets under way, will be legal only on casino premises in Deadwood as things stand. There are some offshore operators who offer people in the US the chance to bet; however, these operators are not licensed or regulated, so if you have a dispute with them, you will have no legal recourse and could lose your money.