South Dakota lawmakers send sports betting bill to Governor

Lawmakers in South Dakota have sent a piece of sports betting legislation to the Governor for final approval.

Lawmakers in the state of South Dakota have sent a piece of sports betting legislation to Governor Kristi Noem for final approval.

South Dakota lawmakers have now become the first to send sports betting legislation to a state Governor in 2021.

The sports betting legislation

The sports betting legislation, SB 44 was sent to South Dakota’s governor after the House approved the bill with a vote of 58 for and eight against on Thursday.

SB 44 outlines the framework for legal sports wagering in the state of South Dakota.

If Noem approves the legislation then casinos in the town of Deadwood would be permitted to offer sports wagering.

Sports betting in the state would be restricted to land-based casinos located in the town of Deadwood and does not allow for online or mobile wagering. The legislation would also ban betting on South Dakota college teams and some college prop bets.

The bill sets a tax rate of 9% on sports betting revenue and the South Dakota Commission on Gaming will be charged with regulating the activity.

The bill also proposes one of the cheapest licensing fees for sports betting in the entire US. If the legislation is successful, a sports wagering services provider permit would cost operators $2,000.

Tax revenue generated from sports betting will go towards the preservation of the town of Deadwood.

South Dakota’s road to sports betting

South Dakota was one of four states to legalise sports betting via a referendum last year and is the first of those states to create and pass legislation for its sports betting framework.

The other states to legalise sports betting via referendum were Nebraska, Maryland and Louisiana.

In South Dakota, three sports betting bills were filed for the current legislation but SB 44 is the only one to survive. 

The other two bills were filed in the House and would have permitted statewide mobile sports betting and for sportsbooks that were tethered to land-based casinos to offer betting via kiosks.

South Dakota voters approved Amendment B, by a margin of 58.5% for and 41.5% against it.

The measure did not include any specific fees or a tax rate. However, Amendment B stated that money generated from legal sports betting will be put towards the historic restoration and preservation of Deadwood.

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