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Sub-national
North America

South Dakota (USA): gambling regulation and licensing

Part of United States

  • Online sports bettingProhibited
  • Online casinoProhibited
  • Online pokerProhibited
  • Lottery and iLotteryProhibited
  • Horse race bettingRegulated
  • Daily fantasy sportsNot yet verified
  • Prediction marketsNot yet verified
  • Land-based (reference)Regulated
Regulator
South Dakota Commission on Gaming
Headline tax
See Taxation
Licence required
Yes
Last verified
14 Oct 2026

Summary

South Dakota confines commercial casino gaming to the city of Deadwood and has no licensed statewide online casino, poker or sports betting market. Article III, section 25 of the state Constitution bars the Legislature from authorising games of chance except charitable games, a state lottery and video lottery, and, within Deadwood's city limits, roulette, keno, craps, limited card games, slot machines and wagering on sporting events. The South Dakota Commission on Gaming, five members appointed by the Governor and attached to the Department of Revenue, licenses and audits Deadwood gaming under SDCL chapter 42-7B and regulates horse racing under chapter 42-7. The South Dakota Lottery, also a division of the Department of Revenue, sells draw and scratch games through licensed retailers and runs video lottery on machines placed in bars by licensed private operators. Deadwood casinos pay 9% of adjusted gross proceeds plus a $2,000 annual stamp on each device, and the state takes 50% of video lottery net machine income. In fiscal year 2025 Deadwood's adjusted gross revenue was $147.8 million, up 2.84%, and video lottery net machine income was $333.1 million. Sports bets may be placed only on the premises of a Deadwood casino, including through mobile accounts opened there in person, and tribal casinos offer sports wagering under compacts. Running an internet gambling business is a felony under chapter 22-25A. SJR 504, which would have put statewide mobile sports betting to voters, passed the Senate but was shelved by the House State Affairs Committee in February 2026, the third such resolution to fail since 2023. Since 1 July 2026 online pari-mutuel wagering requires a multi-jurisdictional totalizator hub licence, and a new formula splits Deadwood's net gaming proceeds. In June 2026 the Commission fined BetMGM $55,000 for accepting mobile sports wagers outside Deadwood.

Common pitfalls

Assuming a mobile sportsbook app can take bets anywhere in the state: sports wagers must be placed on the premises of a Deadwood casino, and the Commission fined BetMGM for accepting wagers outside the city. Treating video lottery as private slot gaming: it is a state lottery game on privately owned machines, with half the net machine income going to the state. Reading the 9% Deadwood tax as a rate on stakes: it applies to adjusted gross proceeds. Assuming the Legislature alone can widen gambling: any new form beyond the listed exceptions needs a constitutional amendment approved by voters.

Key facts

Regulator
South Dakota Commission on Gaming (SDCG)
Regulator type
Sub-national body
Headline tax
See Taxation
Licence required
Yes
Minimum age
21+
Tax base
Deadwood gaming tax of 8% (SDCL 42-7B-28) plus 1% (42-7B-28.1) on adjusted gross proceeds: gross proceeds less cash prizes, and for poker the rake retained by the licensee (42-7B-4(1)). Operator free play is excluded from gross proceeds, prizes deducted are reduced by 90% of free play value, and the federal excise tax on sports wagers is deductible (42-7B-28.2); the rake on exchange wagering is taxed like sports wagering receipts (ARSD 20:18:35:04). Returns and payment are due within 15 days after each month (42-7B-29). A $2,000 annual licence stamp applies to each device (42-7B-23). In fiscal year 2025 the 1% tax put $1.46 million into the general fund. Video lottery: the state keeps 50% of net machine income, cash in less cash paid out (SDCL 42-7A-1(11), 42-7A-63), which came to $165.1 million in fiscal year 2025. Pari-mutuel: the state and racing funds each take 1.5% of amounts wagered in the state through interstate pools, and a combined 0.25% of amounts contributed through a hub (42-7-102).

How to get a gambling license in South Dakota

Online casino and online sports betting are prohibited in South Dakota, so no licence currently permits offering them. The licensing regime as recorded is set out below.

The regulator is the South Dakota Commission on Gaming (SDCG).

We record 9 licence types for South Dakota.

For the Operator and route operator licences (Deadwood), the application fee is $1,000 (as of 1 Sept 2025) and the annual fee is $200 (as of 1 Sept 2025).

Applications
Accepted on a rolling basis
Local presence
A local company or establishment is required.
Financial guarantee
Multi-jurisdictional totalizator hubs post a bond set by the Commission guaranteeing payments to the Commission, winning tickets and account balances up to $10,000 each (ARSD 20:04:33:33). Video lottery licensees may be required to show financial stability or furnish surety (SDCL 42-7A-4(6)). Advance deposit sports wagering funds must sit in a dedicated account at a state or federally chartered financial institution (42-7B-77).

Licence fees in South Dakota

Licence typeApplication feeAnnual feeTerm
Operator and route operator licences (Deadwood)Non-refundable $1,000 application fee, $1,000 licence fee, then $200 a year (SDCL 42-7B-22). Each gaming device also needs a $2,000 annual licence stamp (42-7B-23).$1,000 (as of 1 Sept 2025)$200 (as of 1 Sept 2025)1 year (renews 1 July)
Retail licence (Deadwood)$250 application fee, $250 licence fee, then $100 a year. The retail floor plan must be approved by the Deadwood City Commission (42-7B-18).$250 (as of 1 Sept 2025)$100 (as of 1 Sept 2025)1 year (renews 1 July)
Sports wagering services provider licence$5,000 application fee set by the Commission, then a $2,000 licence fee and $2,000 annual renewal (SDCL 42-7B-22(9)).$5,000 (as of 1 Sept 2025)$2,000 (as of 1 Sept 2025)1 year (renews 1 July)
Slot machine and associated equipment manufacturer or distributor licencesSlot machine manufacturer or distributor: $5,000 application, $1,000 licence, $250 renewal. Associated equipment: $500 application, $500 licence, $250 renewal. A slot supplier may not also be an operator or retailer.$5,000 (as of 1 Sept 2025)$250 (as of 1 Sept 2025)1 year (renews 1 July)
Gaming property owner licence$250 application, $250 licence, $100 renewal.$250 (as of 1 Sept 2025)$100 (as of 1 Sept 2025)1 year (renews 1 July)
Key employee and support licencesKey: $150 application, $150 licence, $75 renewal. Support: $50 application, $50 licence, $25 renewal. Fingerprint cards required.$150 (as of 1 Sept 2025)$75 (as of 1 Sept 2025)Calendar year
Multi-jurisdictional totalizator hub licence (racing)$5,000 non-refundable application fee and $2,000 initial system audit fee (ARSD 20:04:33:31), plus background investigation costs; hub key and hub employee licences cost $50 and $35 with $25 and $20 renewals.$5,000 (as of 23 Sept 2026)Not yet verifiedNot yet verified

Built from the record on this page, last verified 14 Oct 2026. The Licensing and Taxation sections carry the full detail and sources.

Licensing

Licence required
Yes
Application window
Rolling
Local establishment required
Yes
Local server required
Not yet verified
Active licences
136 (as of 30 Jun 2025)
Bank guarantee or bond
Multi-jurisdictional totalizator hubs post a bond set by the Commission guaranteeing payments to the Commission, winning tickets and account balances up to $10,000 each (ARSD 20:04:33:33). Video lottery licensees may be required to show financial stability or furnish surety (SDCL 42-7A-4(6)). Advance deposit sports wagering funds must sit in a dedicated account at a state or federally chartered financial institution (42-7B-77).
Notable licensees
BetMGM, LLC (Deadwood sports wagering), Verendrye Benevolent Association (live horse racing, Fort Pierre)
Certification requirements
Slot machines, associated equipment and sports wagering equipment must meet Commission security and audit specifications (SDCL 42-7B-43; ARSD chapters 20:18:18 and 20:18:35.01), and the Commission approved a device testing and consulting contract with Gaming Laboratories International on 23 June 2026. New sports event categories and wager types need Commission approval (ARSD 20:18:35:04). Applicants bear the burden of proving suitability by clear and convincing evidence (42-7B-19).
Barriers to entry
Casino and sports wagering licences are tied to premises within Deadwood's 1989 city limits, with at most 30 devices a building, and every licensee, owner and key employee faces suitability investigation. Video lottery operators must be South Dakota residents. There is no licence route for statewide online casino, poker or sports betting.

Licence types

  • Operator and route operator licences (Deadwood)

    Scope
    Placing tables, slot machines and keno devices or accepting and redeeming bets, including sports bets, in own premises (operator) or under agreements with retailers (route operator).
    Term
    1 year (renews 1 July)
    Application fee
    $1,000 as of 1 Sept 2025
    Annual fee
    $200 as of 1 Sept 2025
    Fee basis
    Non-refundable $1,000 application fee, $1,000 licence fee, then $200 a year (SDCL 42-7B-22). Each gaming device also needs a $2,000 annual licence stamp (42-7B-23).
    Renewal terms
    Renews each 1 July; licences are revocable privileges and not transferable (42-7B-2.1, 42-7B-24).

  • Retail licence (Deadwood)

    Scope
    Maintaining gaming at the licensee's place of business within Deadwood, up to 30 devices per licence and per building.
    Term
    1 year (renews 1 July)
    Application fee
    $250 as of 1 Sept 2025
    Annual fee
    $100 as of 1 Sept 2025
    Fee basis
    $250 application fee, $250 licence fee, then $100 a year. The retail floor plan must be approved by the Deadwood City Commission (42-7B-18).
    Renewal terms
    Renews each 1 July.

  • Sports wagering services provider licence

    Scope
    Maintaining or operating sports wagering software or hardware, or facilitating wagering through data, risk management, odds setting and similar services (SDCL 42-7B-4(43)).
    Term
    1 year (renews 1 July)
    Application fee
    $5,000 as of 1 Sept 2025
    Annual fee
    $2,000 as of 1 Sept 2025
    Fee basis
    $5,000 application fee set by the Commission, then a $2,000 licence fee and $2,000 annual renewal (SDCL 42-7B-22(9)).
    Renewal terms
    Renews each 1 July.

  • Slot machine and associated equipment manufacturer or distributor licences

    Scope
    Supplying slot machines, components and associated equipment for Deadwood.
    Term
    1 year (renews 1 July)
    Application fee
    $5,000 as of 1 Sept 2025
    Annual fee
    $250 as of 1 Sept 2025
    Fee basis
    Slot machine manufacturer or distributor: $5,000 application, $1,000 licence, $250 renewal. Associated equipment: $500 application, $500 licence, $250 renewal. A slot supplier may not also be an operator or retailer.
    Renewal terms
    Renews each 1 July.

  • Gaming property owner licence

    Scope
    Owning real property in Deadwood where licensed gaming is conducted, other than the retailer.
    Term
    1 year (renews 1 July)
    Application fee
    $250 as of 1 Sept 2025
    Annual fee
    $100 as of 1 Sept 2025
    Fee basis
    $250 application, $250 licence, $100 renewal.
    Renewal terms
    Renews each 1 July.

  • Key employee and support licences

    Scope
    Key licence for anyone with significant influence over a gaming licensee; support licence for every gaming employee, who must be 21 or over.
    Term
    Calendar year
    Application fee
    $150 as of 1 Sept 2025
    Annual fee
    $75 as of 1 Sept 2025
    Fee basis
    Key: $150 application, $150 licence, $75 renewal. Support: $50 application, $50 licence, $25 renewal. Fingerprint cards required.
    Renewal terms
    Renew by 31 December each year.

  • Video lottery manufacturer, distributor, operator and establishment licences

    Scope
    Supplying and placing video lottery machines, which may only be in licensed bars and lounges, up to ten per establishment.
    Term
    1 year
    Fee basis
    Annual fees set by rule up to $5,000 for manufacturers and distributors, the greater of $1,000 or $100 a machine for operators and $100 for establishments, plus a one-time application fee of up to $50 (SDCL 42-7A-41). Operators must be South Dakota residents, with majority ownership held by residents or a qualifying public company (42-7A-43).
    Renewal terms
    Renewable annually; not transferable.

  • Multi-jurisdictional totalizator hub licence (racing)

    Scope
    Accepting pari-mutuel wagers, including, since 1 July 2026, through any online platform offering wagering on horse or dog races to South Dakota players.
    Application fee
    $5,000 as of 23 Sept 2026
    Fee basis
    $5,000 non-refundable application fee and $2,000 initial system audit fee (ARSD 20:04:33:31), plus background investigation costs; hub key and hub employee licences cost $50 and $35 with $25 and $20 renewals.

  • Lottery retailer contract

    Scope
    Selling lottery tickets at the location stated on the retailer certificate.
    Term
    1 year
    Fee basis
    The executive director may charge an application fee (SDCL 42-7A-11).
    Renewal terms
    Renewable annually; not transferable or assignable.

Taxation

Headline GGR tax
9% GGR
Effective date
Not yet verified
Player winnings tax
South Dakota imposes no state income tax. Lottery prizes are taxed as South Dakota source income and are subject to federal income tax (SDCL 42-7A-34), and the Lottery emails Form W-2G for mobile prize claims where applicable.
Tax base
Deadwood gaming tax of 8% (SDCL 42-7B-28) plus 1% (42-7B-28.1) on adjusted gross proceeds: gross proceeds less cash prizes, and for poker the rake retained by the licensee (42-7B-4(1)). Operator free play is excluded from gross proceeds, prizes deducted are reduced by 90% of free play value, and the federal excise tax on sports wagers is deductible (42-7B-28.2); the rake on exchange wagering is taxed like sports wagering receipts (ARSD 20:18:35:04). Returns and payment are due within 15 days after each month (42-7B-29). A $2,000 annual licence stamp applies to each device (42-7B-23). In fiscal year 2025 the 1% tax put $1.46 million into the general fund. Video lottery: the state keeps 50% of net machine income, cash in less cash paid out (SDCL 42-7A-1(11), 42-7A-63), which came to $165.1 million in fiscal year 2025. Pari-mutuel: the state and racing funds each take 1.5% of amounts wagered in the state through interstate pools, and a combined 0.25% of amounts contributed through a hub (42-7-102).

Earmarked levies

  • 8% gaming tax distribution: 40% to the tourism promotion fund, 10% to Lawrence County, the rest to the Commission fund (Tourism promotion fund; Lawrence County; South Dakota Gaming Commission fund (SDCL 42-7B-48))
  • Additional 1% gaming tax: 1% of adjusted gross proceeds (State general fund, monthly (SDCL 42-7B-28.1))
  • Net municipal proceeds (from 1 July 2026): After Commission expenses, up to $30,000 a year for gambling addiction programmes and $100,000 to historic preservation: 25% to the general fund, 3.3% to other Lawrence County municipalities, 0.7% to Lawrence County school districts without state aid, 71% to the City of Deadwood (State general fund; Lawrence County municipalities and school districts; Deadwood historic restoration and preservation fund (SDCL 42-7B-48, 42-7B-48.1, 42-7B-48.3, as amended by SB 102))
  • Video lottery operating fund: 0.5% of net machine income plus video lottery licence fees (South Dakota Lottery (SDCL 42-7A-41.1, 42-7A-63))
  • Racing funds: 1.5% each to the special racing revolving fund and the South Dakota-bred racing fund on pooled wagers; of the 0.25% hub share, 0.2% and 0.05% (Commission on Gaming racing funds (SDCL 42-7-102))

Compliance

Minimum age
21+
KYC timing
Sports wagering accounts: identity verified at account opening, in person, before any deposit; location checked on every wager (ARSD 20:18:36:04).
AML regime
Sports wagering licensees and service providers must comply with the federal Bank Secrecy Act, keep currency transaction and suspicious activity reports for five years and give them to the Commission on request (ARSD 20:18:35:23). No licensee or employee may extend credit for gaming, a Class 6 felony (SDCL 42-7B-45). Sports wagering receipts are accounted for separately (42-7B-76) and advance deposit funds are held in trust in a segregated account (42-7B-77; ARSD 20:18:36:02).
AML supervisor
South Dakota Commission on Gaming, for records kept under the Bank Secrecy Act by sports wagering licensees
Deposit limits
Advance deposit sports wagering licensees must let account holders set daily, weekly or monthly deposit limits; decreases apply at once, increases only after the current period ends (ARSD 20:18:36:25).
Loss limits
Account holders may also set daily, weekly or monthly wager limits on funds put at risk (ARSD 20:18:36:25).
Central monitoring system
Every video lottery machine is linked to a central communications system providing auditing information approved by the Lottery Commission (SDCL 42-7A-37(7)).
KYC requirements
Every Deadwood gaming participant must be 21 or over; underage play is a Class 1 misdemeanour for the player and the licensee (SDCL 42-7B-35). Advance deposit sports wagering accounts are opened in person at a Deadwood licensed establishment with full legal name, date of birth, residential address, Social Security number or its last four digits (or a passport or taxpayer number for non-citizens) and government identification proving age 21 (42-7B-78; ARSD 20:18:36:06, 20:18:36:08). Video lottery players must be 21 (42-7A-48) and lottery ticket buyers 18 (42-7A-32). Hub wagering account holders must be 18 if South Dakota residents and 21 otherwise (ARSD 20:04:33:56). Tribal compacts set 21 for class III gaming.
Stake limits
Deadwood: $1,000 maximum initial or subsequent bet on all games, including single sports bets (SDCL 42-7B-14; ARSD 20:18:35:13); slot machines must pay back at least 80% of a credit (42-7B-36). Video lottery: no more than $2 a game and no award above $1,000 a bet, with at least 80% payback (42-7A-38).
Mandatory player messaging
Signs at every entrance and on every gaming device stating that patrons must be 21 to gamble (ARSD 20:18:12.01:22). Patron protection information on demand, covering the risks of excessive wagering, an approved problem gambling organisation, the offence of underage gambling, self-exclusion and dispute procedures (ARSD 20:18:12.01:24, 20:18:35:10). Video lottery odds posted on or near each machine (SDCL 42-7A-41.2), and the problem gambling helpline, 1-888-781-HELP, printed on lottery tickets and video lottery machines.
Reporting obligations
Monthly gaming tax returns within 15 days of month end (SDCL 42-7B-29); prompt reports of any criminal or disciplinary proceeding relating to sports wagering (42-7B-81); cooperation with sports governing body investigations with Commission approval (42-7B-80); notice before taking part in gaming out of state or on a reservation (42-7B-67). Video lottery machine owners report and remit the state share twice a month (42-7A-45).
Game content restrictions
No bets on high school sports, minor league events, individual player performance in a college game, or any college game involving a South Dakota college team (SDCL 42-7B-82); athletes, officials, coaches and sports wagering provider staff may not bet (42-7B-83). Every event category and wager type needs Commission approval (ARSD 20:18:35:04). Video games of chance may not directly dispense coins or tokens (Constitution art. III, s. 25).

Minimum age by vertical

  • Land-based (reference): 21+
  • Horse race betting: 18+

Advertising

Advertising permitted
Yes
Affiliate rules
No affiliate or marketing licence exists among the licence types in SDCL 42-7B-22.
Bonus advertising rules
Sports wagering promotions must disclose all terms in clear language and, once a patron meets the terms, winnings may not be limited (ARSD 20:18:35:21).
Mandatory warnings
Entrance and device signage stating that gaming patrons must be 21 years of age to gamble (ARSD 20:18:12.01:22).
Penalties for breach
Suspension or revocation of the licence, a reprimand, or a monetary penalty for each offence of up to $250,000 for a slot machine manufacturer or distributor, $100,000 for an operator, associated equipment supplier or sports wagering services provider, $25,000 for a retailer or gaming property owner (SDCL 42-7B-32).

Restrictions

  • Conducting false or misleading advertising is a ground for disciplinary action against a Deadwood licensee (ARSD 20:18:09:01(4)).
  • Sports wagering bonus and promotional offers must be stated in clear and unambiguous terms, covering eligibility, wagering requirements, withdrawal restrictions and cancellation, and must be cancellable by the patron (ARSD 20:18:35:21).
  • The Lottery may use a prize winner's name, address, gender, age or photograph in advertising or promotion only with the winner's written consent (SDCL 42-7A-50.1).
  • There is no licensed statewide online casino, poker or sports betting operator whose products could lawfully be advertised to South Dakota players; sports wagers must be placed on Deadwood casino premises.

Payments

Credit card ban
Not yet verified
Crypto stance
Not addressed
Permitted methods
Cash, sports wagering vouchers, cash equivalents, value chips, promotional credits and advance deposit account funds for sports bets in Deadwood (ARSD 20:18:35:13), Coins, bills or ticket vouchers in video lottery machines (SDCL 42-7A-37(3)), ACH payment of mobile lottery prize claims from $101 to $5,000 for Players Club members
Withdrawal timeframe rules
Lottery mobile prize claims are usually paid within four business days, eight for a first claim.
Currency restrictions
Licensees may not extend credit for gaming (SDCL 42-7B-45). Advance deposit sports wagering funds must be kept in an account at a state or federally chartered financial institution used for no other purpose (42-7B-77) and held in trust for the account holder (ARSD 20:18:36:02(12)).

Enforcement

ISP blocking
Not yet verified
DNS blocking
Not yet verified
Payment blocking
Not yet verified
App store takedowns
Not yet verified
Administrative penalties
The Commission may suspend or revoke any licence, reprimand, or impose a monetary penalty per offence of up to $250,000 (slot manufacturers and distributors), $100,000 (operators, associated equipment suppliers, sports wagering services providers), $25,000 (retailers, gaming property owners), $5,000 (key employees) and $2,500 (support licensees) (SDCL 42-7B-32). It may place persons on an exclusion list and discipline licensees that fail to exclude them (42-7B-61).
Criminal penalties
Internet gambling business: Class 6 felony (up to two years and $4,000), Class 5 felony for a repeat (up to five years and $10,000), each bet a separate violation (SDCL 22-25A-9, 22-25A-10, 22-6-1). Conducting gaming without a licence, extending credit, and a licensee or bettor breaching the sports betting bans: Class 6 felony (42-7B-22, 42-7B-45, 42-7B-83). Cheating: Class 5 felony (42-7B-42). Keeping a slot machine outside the licensed system: Class 1 misdemeanour, up to one year and $2,000 (22-25-13, 22-6-2). Gambling or sports wagering outside licensed gaming: Class 2 misdemeanour, up to 30 days and $500 (22-25-1).
Operator liability
Licensees answer for the conduct of their officers, agents and employees (SDCL 42-7B-32). The Attorney General may notify an offshore gambling business that its website is illegal in South Dakota, and the Attorney General or a state's attorney may seek restraining orders and permanent injunctions against transmitting bets or betting information (22-25A-12 to 22-25A-14).
Player liability
Placing a wager on a sporting event or gambling outside licensed Deadwood gaming is a Class 2 misdemeanour (SDCL 22-25-1). Underage play in Deadwood is a Class 1 misdemeanour (42-7B-35), and an excluded person who enters a casino after notice commits a Class 1 misdemeanour (42-7B-61).

Notable actions

  • BetMGM, LLC23 Jun 2026

    Stipulation accepted for allowing sports wagers to be placed through a mobile app outside Deadwood's city limits, in breach of SDCL 42-7B-1 and 42-7B-14; complaint filed 24 February 2026; licensee agreed and paid the penalty.

    Fine: $55,000 as of 23 Jun 2026

  • Two privately held slot machines seized by the Commission23 Jun 2026

    Ordered destroyed as contraband after the owners did not appear at the hearings (SDCL 42-7B-39, 42-7B-39.2).

  • SGMSD, LLC (Deadwood retail licensee)30 Mar 2026

    Stipulation accepted for employing a gaming employee without an active gaming licence (SDCL 42-7B-27).

    Fine: $500 as of 30 Mar 2026

  • Privately owned slot machines advertised for sale online16 Sept 2025

    Seven machines seized and ordered destroyed at the Commission meeting; the Commission issued a public reminder that private possession of slot machines is illegal.

Market data

Figures on this record are drawn from official regulator data.

Online GGR
Not yet verified
Reporting year
2025
Year-on-year growth
2.84%

GGR by vertical

  • Land-based (reference): $147,752,016.82 as of 30 Jun 2025

Timeline

  1. 3 Nov 2020

    Voters approve the amendment to Constitution art. III, s. 25 proposed by SL 2020, ch 1; the section now includes wagering on sporting events in Deadwood

  2. 22 Aug 2021

    Sports wagering and advance deposit wagering rules take effect in Deadwood

  3. 16 Feb 2023

    House rejects HJR 5006, a mobile sports wagering amendment, 28 to 41

  4. 13 Feb 2025

    SJR 507, a mobile sports wagering amendment, tabled in Senate Commerce and Energy

  5. 30 Jun 2025

    Fiscal year 2025 closes: $1.59 billion wagered in Deadwood, adjusted gross revenue $147.8 million, up 2.84%; video lottery net machine income $333.1 million

  6. 16 Sept 2025

    Commission orders seven seized privately owned slot machines destroyed

  7. 31 Dec 2025

    Calendar year 2025 closes with $1.63 billion wagered in Deadwood, including $10.8 million of sports wagers

  8. 11 Feb 2026

    Senate passes SJR 504, a mobile sports wagering amendment, 23 to 10

  9. 17 Feb 2026

    Governor signs HB 1058 on licensing online pari-mutuel wagering

  10. 25 Feb 2026

    House State Affairs defers SJR 504 to the 41st legislative day after a 6 to 7 do-pass vote fails

  11. 18 Mar 2026

    Governor signs SB 102, changing the distribution of Deadwood gaming revenue

  12. 23 Jun 2026

    Commission accepts a $55,000 stipulation from BetMGM over mobile wagers outside Deadwood and adopts online pari-mutuel wagering rules

  13. 1 Jul 2026

    HB 1058 and SB 102 take effect

  14. 22 Sept 2026

    Public hearing scheduled by the Commission on a rule for the 21+3 blackjack variation

Outlook

The Commission's rules for online pari-mutuel wagering through licensed hubs, adopted on 23 June 2026 to implement HB 1058, still have to appear in the compiled rules, after which unlicensed online race wagering platforms serving South Dakota players would need a hub licence. At a hearing on 22 September 2026 the Commission approved a rule allowing the 21+3 blackjack variation; its next meeting is on 15 December 2026. SB 102's new split of Deadwood's net proceeds applies from fiscal year 2027. Statewide mobile sports betting would require a new joint resolution in a later session and approval by voters; resolutions failed in 2023, 2025 and 2026.

Frequently asked questions

Is online sports betting legal in South Dakota?
Only on Deadwood casino premises. The Constitution confines sports wagering to Deadwood and SDCL 42-7B-79 requires every bet to be placed on a licensed establishment's premises, including through mobile accounts opened there in person. SJR 504, which would have let voters approve statewide mobile wagering, was shelved in the House in February 2026.
Who regulates gambling in South Dakota?
The South Dakota Commission on Gaming, attached to the Department of Revenue, regulates Deadwood casinos, sports wagering and pari-mutuel racing. The South Dakota Lottery, a division of the same department, runs the lottery and video lottery. Tribal casinos operate under compacts with the state.
How is Deadwood gaming taxed?
At 9% of adjusted gross proceeds (8% under SDCL 42-7B-28 and 1% under 42-7B-28.1), plus a $2,000 annual stamp on each device. From 1 July 2026 the net proceeds left after expenses are split 71% to Deadwood, 25% to the state general fund and 4% to other Lawrence County municipalities and schools.
Can South Dakota residents bet on horse races online?
Yes, through licensed operators: since 1 July 2026 an online pari-mutuel platform must be licensed as a multi-jurisdictional totalizator hub by the Commission on Gaming, and platforms without a physical presence pay tax on South Dakota wagers (SDCL 42-7-107).
What is the minimum gambling age?
21 for Deadwood casinos, sports wagering, video lottery and tribal casinos; 18 for lottery tickets and for South Dakota residents wagering on horse racing.
How large is the market?
In fiscal year 2025 Deadwood casinos took $1.59 billion in wagers and kept $147.8 million in adjusted gross revenue, up 2.84%, and video lottery net machine income was $333.1 million. Deadwood sports wagering handle was $10.8 million in calendar year 2025.
How much does a gambling licence cost in South Dakota?
Online gambling is prohibited in South Dakota at present, so no licence currently permits it. As recorded: For the Operator and route operator licences (Deadwood), the application fee is $1,000 (as of 1 Sept 2025) and the annual fee is $200 (as of 1 Sept 2025). For the Retail licence (Deadwood), the application fee is $250 (as of 1 Sept 2025) and the annual fee is $100 (as of 1 Sept 2025). For the Sports wagering services provider licence, the application fee is $5,000 (as of 1 Sept 2025) and the annual fee is $2,000 (as of 1 Sept 2025). The Licensing section lists all 9 licence types recorded for South Dakota. Last verified 14 Oct 2026.

Glossary and directory

Sources

Source tiers. Tier 1: the law, official gazette, licence register or regulator itself. Tier 2: other official sources such as ministries, parliaments, courts and statistics agencies. Only tier 1 and tier 2 sources can support a fact on their own.

  1. Gaming for individuals: South Dakota Commission on Gaming, licences, self-exclusion and gaming FAQs

    South Dakota Commission on Gaming (Department of Revenue)

    Tier 1Accessed 23 Sept 2026
  2. Gaming for businesses: Commission on Gaming applications, annual reports, monthly statistics and meetings

    South Dakota Commission on Gaming (Department of Revenue)

    Tier 1Accessed 23 Sept 2026
  3. Gaming laws and regulations: ARSD articles 20:18 and 20:04 and patron dispute procedure

    South Dakota Commission on Gaming (Department of Revenue)

    Tier 1Accessed 23 Sept 2026
  4. Constitution of South Dakota, article III, section 25: games of chance prohibited, with exceptions (as amended to 3 November 2020)

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026
  5. SDCL chapter 42-7B, Limited card games, slot machines, craps, roulette, and keno (Deadwood gaming and sports wagering)

    South Dakota Legislature (Legislative Research Council)

    Codified law read section by section through the Legislative Research Council statute service on 23 September 2026. The compilation already carries the 2026 session laws (SL 2026, chs 109, 173 and 174).

    Tier 1Accessed 23 Sept 2026
  6. SDCL chapter 42-7A, State Lottery (lottery and video lottery)

    South Dakota Legislature (Legislative Research Council)

    Codified law read section by section through the Legislative Research Council statute service on 23 September 2026. The compilation already carries the 2026 session laws (SL 2026, chs 109, 173 and 174).

    Tier 1Accessed 23 Sept 2026
  7. SDCL chapter 42-7, Horse and dog racing (pari-mutuel, simulcast, multi-jurisdictional totalizator hubs and online pari-mutuel wagering)

    South Dakota Legislature (Legislative Research Council)

    Codified law read section by section through the Legislative Research Council statute service on 23 September 2026. The compilation already carries the 2026 session laws (SL 2026, chs 109, 173 and 174).

    Tier 1Accessed 23 Sept 2026
  8. SDCL chapter 22-25, Gambling and lotteries

    South Dakota Legislature (Legislative Research Council)

    Codified law read section by section through the Legislative Research Council statute service on 23 September 2026. The compilation already carries the 2026 session laws (SL 2026, chs 109, 173 and 174).

    Tier 1Accessed 23 Sept 2026
  9. SDCL chapter 22-25A, Internet gambling

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026
  10. SDCL 22-6-1, felony classes and penalties

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026
  11. SDCL 22-6-2, misdemeanour classes and penalties

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026
  12. SDCL 2-14-16, effective date of legislative acts (1 July after a regular session)

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026
  13. Administrative Rules of South Dakota, article 20:18, Gaming Commission: Deadwood gambling

    South Dakota Commission on Gaming

    Tier 1Accessed 23 Sept 2026
  14. ARSD chapter 20:18:12.01, Operation of gaming establishments (age signage, patron protection, self-exclusion plan as amended effective 15 June 2026)

    South Dakota Commission on Gaming

    Tier 1Accessed 23 Sept 2026
  15. ARSD chapter 20:18:35, Requirements of sports wagering operations

    South Dakota Commission on Gaming

    Tier 1Accessed 23 Sept 2026
  16. ARSD chapter 20:18:36, Advance deposit wagering (sports wagering accounts)

    South Dakota Commission on Gaming

    Tier 1Accessed 23 Sept 2026
  17. ARSD chapter 20:18:09, Grounds for disciplinary action

    South Dakota Commission on Gaming

    Tier 1Accessed 23 Sept 2026
  18. ARSD chapter 20:04:33, Multi-jurisdictional hubs (licensing, fees, bond, accounts)

    South Dakota Commission on Gaming

    The compiled chapter read on 23 September 2026 still shows the 2005 text; the amendments on online pari-mutuel wagering adopted by the Commission on 23 June 2026 were not yet in the compilation.

    Tier 1Accessed 23 Sept 2026
  19. Business gaming license application (September 2025): application, licence and renewal fees

    South Dakota Commission on Gaming (Department of Revenue)

    Tier 1Accessed 23 Sept 2026
  20. South Dakota Commission on Gaming Annual Report, fiscal year 2025 (1 July 2024 to 30 June 2025)

    South Dakota Commission on Gaming (Department of Revenue)

    The report describes the distribution of net municipal proceeds in force during fiscal year 2025 (City of Deadwood first to $6.8 million, then 70/10/10/10). SB 102 (2026) replaced that formula from 1 July 2026; this record follows the statute as amended.

    Tier 2Accessed 23 Sept 2026
  21. South Dakota Gaming Statistics Monthly Summary, December 2025 (with calendar year 2025 totals)

    South Dakota Commission on Gaming (Department of Revenue)

    Tier 2Accessed 23 Sept 2026
  22. Commission on Gaming minutes, 23 June 2026: administrative hearings, rules hearings, stipulations including BetMGM, LLC

    South Dakota Commission on Gaming (Department of Revenue)

    Text taken from the unapproved minutes posted with the meeting. The Commission also posted an approved version, which is a scanned image with no text layer and could not be compared word for word.

    Tier 1Accessed 23 Sept 2026Published 23 Jun 2026
  23. Commission on Gaming minutes, 30 March 2026: stipulations and executive secretary report on the 2026 session

    South Dakota Commission on Gaming (Department of Revenue)

    Text taken from the unapproved minutes posted with the meeting. The Commission also posted an approved version, which is a scanned image with no text layer and could not be compared word for word.

    Tier 1Accessed 23 Sept 2026Published 30 Mar 2026
  24. Notice of public hearing on 22 September 2026 to adopt rule 20:18:15:30.03 (21+3 blackjack variation)

    South Dakota Commission on Gaming (Department of Revenue)

    Tier 1Accessed 23 Sept 2026
  25. South Dakota Commission on Gaming issues reminder: private possession of slot machines is illegal

    South Dakota Department of Revenue

    Tier 2Accessed 23 Sept 2026
  26. Individual taxes: South Dakota does not impose a state income tax

    South Dakota Department of Revenue

    Tier 1Accessed 23 Sept 2026
  27. Where the money goes: lottery and video lottery revenue distribution and age limits

    South Dakota Lottery (Department of Revenue)

    Tier 1Accessed 23 Sept 2026
  28. Mobile cashing: app claims for instant and lotto prizes of $101 to $5,000

    South Dakota Lottery (Department of Revenue)

    Tier 1Accessed 23 Sept 2026
  29. Video lottery establishments, terminals and net machine income by fiscal year, 1990 to 2025

    South Dakota Lottery (Department of Revenue)

    Tier 2Accessed 23 Sept 2026
  30. Responsible play: problem gambling funding and helpline

    South Dakota Lottery (Department of Revenue)

    Archived copy
    Tier 1Accessed 24 Sept 2026
  31. SJR 504 (2026), constitutional amendment for mobile or electronic sports wagering: passed Senate 23 to 10, deferred to the 41st legislative day by House State Affairs on 25 February 2026

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026Published 25 Feb 2026
  32. HB 1058 (2026), licensure for online pari-mutuel wagering on horse and dog races: signed 17 February 2026

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026Published 17 Feb 2026
  33. SB 102 (2026), distribution of gaming revenues: signed 18 March 2026

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026Published 18 Mar 2026
  34. SB 102 (2026) as amended (hoghoused), amending SDCL 42-7B-48 and 42-7B-48.1

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026
  35. HB 1201 (2026), bingo games, lotteries and pull-tab devices by booster clubs: signed 26 February 2026

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026Published 26 Feb 2026
  36. SJR 507 (2025), constitutional amendment for mobile or electronic sports wagering: tabled in Senate Commerce and Energy 8 to 0 on 13 February 2025

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026Published 13 Feb 2025
  37. HJR 5006 (2023), constitutional amendment for mobile or electronic sports wagering: failed in the House 28 to 41 on 16 February 2023

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026Published 16 Feb 2023
  38. SB 209 (2023), sports wagering in licensed alcoholic beverage establishments: tabled 9 to 0

    South Dakota Legislature (Legislative Research Council)

    Tier 1Accessed 23 Sept 2026
  39. Tribal-state gaming compacts, South Dakota: compacts and extensions with nine tribes

    US Department of the Interior, Bureau of Indian Affairs, Office of Indian Gaming

    Tier 1Accessed 23 Sept 2026
  40. Gaming Compact between the Standing Rock Sioux Tribe and the State of South Dakota, with Department of the Interior letter of 19 March 2024 (deemed approved)

    US Department of the Interior, Office of the Secretary

    Tier 1Accessed 23 Sept 2026Published 19 Mar 2024
  41. Commission on Gaming, unapproved minutes of the meeting of 22 September 2026 (rules hearing, ARSD 20:18:15:30, 21+3 variation)

    South Dakota Commission on Gaming

    Tier 1Accessed 14 Oct 2026Published 22 Sept 2026

Spotted something out of date? Report a correction.

This page is industry reference information and not legal advice.

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