South Dakota Gambling Laws: A Complete Guide
South Dakota has one of the oldest and most storied histories of any American state when it comes to gambling laws. In this guide, we will cover all there is to know about the origins of gambling in SD, updates to South Dakota gambling laws over time, and the modern-day gambling ecosystem in the state.
South Dakota Gambling Laws Summarized
According to gambling laws in South Dakota, gambling is defined as “engaging in gambling in any form with cards, dice, or other implements or devices of any kind wherein anything valuable is wagered upon the outcome”. It is classified as a Class 2 misdemeanor, which is punishable by a fine of up to $500 and up to 30 days of imprisonment. Engaging in betting activities online is also prohibited. Additionally, it is also illegal to maintain a gambling facility or gambling equipment of any sort.
The minimum age for gambling in South Dakota is 18 for lottery games and 21 for video lottery terminals, casino games, and horse racing betting. Under South Dakota gambling laws, these activities are covered under the South Dakota Codified Laws, Chapters 21-6, 22-5, and 42-7B.
History of South Dakota Gambling Laws
South Dakota’s relationship with gambling is more exciting than those of other American states. Gambling in South Dakota is strongly linked to the infamous town of Deadwood. In 1876, Deadwood was founded by squatters who were illegally living in the Lakota territory for a few years. The famous General Custer found gold in the Black Hills, and this discovery spurred a large influx of Americans to the region.
Following the discovery of gold, the town was taken over by miners, cowboys, and gamblers. A violent incident would lead to the naming of the card combination that is now known as the dead man’s hand, as Wild Bill would be shot in the back of the head during a game of poker.
When the South Dakota territory officially became a state, lawmakers were quick to impose a ban on gambling. Gambling was officially outlawed by 1905 and would remain illegal until 1989, when the state legalized gambling in the town of Deadwood only. Once the gold reserves started to thin, the state turned to tourism in Deadwood for additional revenue.
Overview of South Dakota Gambling Laws
Since the introduction of casinos in South Dakota in 1989, Native American tribes were allowed to build their own casinos?, which were now legal due to the introduction of the federal Indian Gaming Regulatory Act. In the same year, lawmakers also permitted local businesses to install video lottery terminals under the guidance of the South Dakota Lottery. While this decision was held up in a referendum, the local gambling industry was not allowed to expand further.
South Dacota Online Gambling Laws
The online gambling laws in South Dakota are more focused on the operators rather than individual players. The maximum charge a person caught gambling can receive is a Class 2 misdemeanor, which is listed in Section 22-25-1 of the South Dakota code. This law doesn’t make a specific reference to online gambling.
Historically speaking, the state of South Dakota has never prosecuted anyone who has participated in online gambling. Therefore, we consider it safe to assume that online gamblers in South Dakota can indulge without worry in playing at some of the best US casino sites. However, it is important to note that businesses in South Dakota are not allowed to own or operate any outlets for online gambling.
South Dakota Casino Laws
Casino gambling is allowed in the town of Deadwood and on Native American Reservations within the state. There are more than 20 licensed gambling establishments in Deadwood, but some of them only offer a few slot machine games. The larger casinos in Deadwood offer video poker and classic table games such as craps, roulette, and blackjack.
The tribe-operated casinos of South Dakota are situated in Flandreau, Lower Brule, Martin, Mission, Mobridge, Pickstown, Pine Ridge, Sisseton, and Watertown. Before 2013, casinos had to enforce a maximum bet limit of $100, but this limit was raised to $1000 in 2013.
Additionally, bars and gas stations across the entire state are permitted to install Video Lottery Terminals under South Dakota Gambling Laws. These machines work similar to slot machines but operate under the purview of the South Dakota Lottery. The maximum return on VLT games is 92%, making them riskier to play than slots.
There are no regulated online casinos based in South Dakota. Local businesses. Local businesses are fundamentally forbidden from owning and operating any gambling sites. According to South Dakota gambling laws, playing on offshore sites is a Class 2 misdemeanor.
Poker Laws in South Dakota
There are over ten live poker rooms in South Dakota, four of which are located in the famous town of Deadwood. The other 6 poker rooms in South Dakota are operated by Indian tribes. Most of these venues are known to only operate 3-5 tables. South Dakota gambling laws prohibit casinos from offering no-limit games.
Therefore, local poker enthusiasts can enjoy niche games, such as Limit Hold ’em, Spread Limit Hold ’em, and Limit Omaha. However, the residents of South Dakota do not have access to state-sanctioned online poker platforms. As mentioned earlier, playing on offshore sites is illegal and considered a Class 2 misdemeanor.
South Dakota Sports Betting
South Dakota has permitted pari-mutuel betting for decades. Local race tracks in Ft. Pierre (Stanley County Fairgrounds) and Aberdeen (Brown County Fairgrounds) offer bets on horse racing. To indulge in off-track betting, residents need to be situated at least 50 miles away from the licensed racetracks, Greyhound racing is legal in South Dakota but no longer available in the state.
2019 saw a bill introduced to South Dakota betting laws. With the introduction of this bipartisan sports betting bill, Deadwood gambling facilities and tribal casinos would be allowed to launch and operate land-based sportsbooks. This bill was initially approved by the Senate Affairs Committee with a 5-4 vote but was struck down by the House State Affairs Committee with a 7-3 vote against the bill.
South Dakota Daily Fantasy Sports
As of writing this article, South Dakota does not have any regulations on Daily Fantasy Sports. Daily Fantasy Sports operators are known to operate freely in the state since their offerings are claimed to be skill-based and do not meet the legal definitions of gambling.
In 2015, South Dakota’s Attorney General, Marty Jackley, issued a statement declaring that the law is not clear enough to seek felony indictments absent explicit directions from the legislature. He proposed that civil remedies be taken instead, but in the end, no action was taken.
Frequently Asked Questions on South Dakota Gambling Laws
Now that you know about South Dakota’s long relationship with gambling and knowledge of the laws of the state, let’s answer some of the most frequently asked questions about South Dakota gambling laws. Have a look at the short FAQ section below:
1️⃣ What types of gambling are legal in South Dakota?
The state is somewhat gambling-friendly. The South Dakota gambling laws allow you to participate in many kinds of real money casino games. The state also operates its lottery and is home to several commercial and tribal casinos. Online gambling is currently unregulated.
2️⃣ Is online gambling legal in South Dakota?
No, online gambling is technically illegal in South Dakota. However, there is no mention of online gambling in current state laws, and no one has been prosecuted for the same. It doesn’t seem like the status quo of online gambling is set to change in the near future.
3️⃣ Where can South Dakota gamblers place bets?
From casinos to poker, South Dakota offers a wide range of exciting gambling opportunities. South Dakota’s long history of gambling laws is being associated with an open mind. You can play at tribal casinos in the state, as well as bet on daily fantasy sports sites like FanDuel and DraftKings.
4️⃣ Is sports betting legal in South Dakota?
Pari-mutuel betting has been legal for decades under the South Dakota sports betting laws. You can bet at the local horseracing tracks, including Stanley County Fairgrounds and Brown County Fairgrounds. In addition, Native American casinos have been allowed to operate land-based sportsbooks.
5️⃣ Are there any land-based casinos in South Dakota?
Yes, there are land-based gambling venues in the state. According to the South Dakota casino laws, casino gambling is allowed in Deadwood and on Native American Reservations. There are more than 20 licensed gambling establishments in Deadwood and many top-quality tribal casinos for players from South Dakota.