Today, South Dakota voters are set to decide the future of sports betting in the state.
According to reports of the American Gaming Association (AGA), the gaming revenue generated in South Dacota on an annual basis since 2008 has been worth $100 million, with a 9% tax applied to the revenue of commercial casinos and $2,000 device tax on each gaming unit allowed.
Some South Dakota Legislative Research Council financial analysts have estimated that the legalization of sports betting in the state could bring $2 million in revenue and $185,000 in taxes every year. Estimates of the AGA rose to $6.8 million, but the Association noted that the legalization of the new form of gambling could create a $22-million impact on the rest of the gaming sector in Deadwood.
State House Speaker Steven Haugaard does not back the sports betting legalization proposal, as he believes that the revenue that could be brought to the state of South Dakota is simply not worth the gambling-associated risks.
If South Dakota voters give their approval to the proposed sports betting legalization, local lawmakers would have to determine the specifics of the new form of gambling in the state. The executive director of the Deadwood Gaming Association, Mike Rodman, shared his concern that the amendment could increase the gambling addiction rates in the state and suggested for the state legislators to follow the guidelines of the American Gaming Association that prohibit betting on high-school sports.
The Addition of Sports Bettng Would Make the State More Competitive, Proponents Say
In any case, even if the proposed measure is backed by South Dakota voters, the process of sports betting legalization would take some time. According to Mr. Rodman, new sports betting laws are not expected to be ratified before July 1st, 2021.
The US Supreme Court lifted the federal ban on sports betting services in 2018 but it also gave every US state the right to individually decide whether to make the new form of gambling legal or not.
So far, 18 states in addition to Washington DC have made sports betting legal, including 7 giving the green light to the new form of gambling in the last eight months. Furthermore, 4 more US states have permitted limited sports betting, and Washington and North Carolina allowing sports betting to take place at tribal casinos.
As mentioned above, the proponents of sports betting in South Dakota have been insisting that adding a new and profitable form of gambling to the state’s gambling market would bring some fresh money to the local economy. The expected amount may not be that big but would help the state fall in line with its neighboring states that have already approved or are considering the addition of legal sports betting.
