South Dakota moved closer to expanding sports wagering this week after the state Senate approved a measure that would let voters decide whether to legalize mobile sports betting.

In a 23–10 vote on Wednesday, senators advanced Senate Joint Resolution 504, sending the proposal to the state House. If approved there, the measure would place a constitutional amendment on the November general election ballot. Voters would determine whether to allow sports betting beyond the current in-person model limited to the historic casino town of Deadwood.

Current market limited to Deadwood

South Dakota voters first authorized sports betting in Deadwood in 2020. Lawmakers later restricted wagering to in-person sportsbooks within the city during the 2021 legislative session. Since sportsbooks launched in September 2021, operators in Deadwood have handled $38.9 million in wagers and generated $3.9 million in revenue, according to the South Dakota Commission on Gaming.

Supporters of online expansion argue that the in-person restriction has capped growth. Previous legislative testimony suggested that monthly online handle in South Dakota could exceed $17 million. For comparison, neighboring Wyoming—which has roughly 400,000 fewer residents—has recorded monthly online sports betting handle surpassing $25 million. State Sen. Casey Crabtree, a co-sponsor of the resolution, framed the proposal as a way to provide property tax relief. While SJR 504 does not specify tax rates, licensing fees, or regulatory details, it directs 90% of any eventual state revenue from mobile wagering toward property tax relief.

The measure would also require online operators to partner with a Deadwood casino. “The proposal ultimately puts more money in the pockets of hard-working South Dakotans,” Crabtree said during Senate debate. The resolution drew opposition from several senators who raised concerns about gambling addiction and social harm. State Sen. Amber Hulse argued that legalization could provide oversight and consumer protections for activity that is already occurring.

“They’re already doing it on the black market. They’re already potentially making bets that are hurting their families more,” Hulse said, according to the South Dakota Searchlight. “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?”

Some lawmakers also cited the growth of unregulated offshore sportsbooks and emerging prediction markets as reasons for caution. Previous attempts to legalize online sports betting have stalled in the legislature. In earlier debates, at least one lawmaker compared sports betting to crimes such as murder and theft, underscoring the depth of opposition among some members.

The proposal ultimately puts more money in the pockets of hard-working South Dakotans.

Cross-border and offshore activity

Even without in-state mobile betting, South Dakotans can place wagers online by traveling to neighboring states where it is legal, including Wyoming and Iowa. Crabtree told senators there are 55,000 registered online sports betting accounts with Wyoming addresses. GeoComply data presented at a committee hearing earlier this year showed 103,000 geolocation pings from within two kilometers of the South Dakota–Iowa border during the 2025 NFL season, suggesting cross-border betting activity.

The data points have become central to supporters’ argument that South Dakota is losing potential tax revenue to other states and to unregulated operators. If the House advances SJR 504, voters will decide in November whether to amend the state constitution to allow mobile sports betting. The outcome would determine whether South Dakota joins the growing number of states offering online wagering, or maintains its current in-person-only model confined to Deadwood.