New Rules Set, What’s Next for South Dakota Sports Betting?

Sportsbook operators looking to enter the South Dakota sports wagering market are eligible to begin the application process Friday.

Gaming Commission Attorney Douglas Abraham announced this week that applications will be available on the commission’s website Friday but will not be approved until July 1. The Commission on Gaming also added an amendment to include a $5,000 application fee for the sportsbook operators.

Sports betting in South Dakota will be permitted at Deadwood casinos. Players can wager at sports betting windows, kiosks or through a mobile app inside the casinos. Voters overwhelmingly approved sports wagering in Deadwood last November.

Gov. Kristi Noem signed sports betting into law on March 18 after the legislature passed SB 44. The law goes into effect on July 1, which is the same day sportsbook operator applications can be approved.

Other Amendments Added
Tuesday was the first of two meetings for the Commission on Gaming to set sports gambling rules. The commission added multiple amendments as it prepares for the state’s sports betting launch.

In addition to the application fee, other amendments included language to existing rules for inspecting records for sports betting equipment, banning suppliers of the equipment from wagering on the sports betting equipment or on manufacturing slot machines. Sports betting was also added to the list of gaming permitted in Deadwood.

The Deadwood Gaming Association (DGA) offered up an amendment on how to define the adjusted gross revenue for sports wagering. The DGA wants to clarify that free play and other promotional money and federal excise tax would be deducted from the reported revenue numbers.

Other amendments were more technical. The Commission on Gaming addresses the language of rules that deal with irregularities in blackjack, the posting of rules in casinos for blackjack and house-banked poker and removed language related to videotape closed-circuit surveillance systems.

The amended rules now go to the state legislature’s Interim Rules Review Committee in June.

The second meeting for the Commission on Gaming is scheduled for July 1 and will focus on the technical rules of betting.