South Dakota House Committee Rejects Sports Betting Measure

Oyster Bay Gaming Deadwood South Dakota
Legal South Dakota sports betting will continue to be limited to Deadwood after a legislative panel rejected a proposal to legalize sports betting in the Mount Rushmore State.

The South Dakota House State Affairs Committee rejected on Friday Senate Joint Resolution 502 which proposed an amendment in the constitution to broaden the state’s gambling rules to legalize sports betting via mobile devices.

South Dakota-based sports betting company BETKOTA also supported the legislation but 10 out of the 13 members of the House State Affairs Committee said no it.

Super Bowl LVI Bettors Blocked

Proponents of the sports betting measure argued that the state is missing out on millions of dollars in potential revenues by continuing to prohibit online sports betting, which is now legal in dozens of state across the country, including Wyoming and Iowa.

According to data from cybersecurity provider GeoComply, which provides technology to online betting sites in order to ensure bets are in legal betting markets before wagers ae accepted, almost 70% of the bets blocked from South Dakota ( equivalent to more than 6,700 people ) in the lead up to Super Bowl LVI last February 14th were people trying to access sportsbooks from Iowa.

Online Sports Betting Benefits Only Sports Betting Companies

But the Committee didn’t see the significance of the missed Super Bowl LVI bets. Instead, they were swayed by the discussions from Gov. Kristi Noem’s administration and social conservative organization Family Heritage Alliance who discussed the societal ills that gambling would bring.

Deputy revenue secretary David West also argued that when voters approved the state’s sports betting measure in 2020, they did not anticipate that it would happen outside Deadwood. West also insisted that opening spots betting anywhere in the state would only serve to make profits for out-of-state companies like DraftKings, FanDuel, and BetMGM.