South Dakota Senator links SJR 504 betting proposal to tax relief
Legislators are considering a constitutional proposal that could bring mobile sports betting statewide while keeping the system tied to Deadwood’s casino sector. In an exclusive interview with SiGMA News, Senator Casey Crabtree, the sponsor of Senate Joint Resolution 504 (SJR 504), revealed how the proposal would allow residents to place bets online through partnerships with Deadwood casinos, require betting servers to remain in the city, and channel 90 percent of the resulting tax revenue into property tax relief.
The legislative path forward has already been overcome, as SJR 504 was sent to the full Senate for debate after the South Dakota Senate Taxation Committee voted 4–3 to recommend it as a “do pass” on 6 February 2026. If lawmakers in both chambers approve it, the question of whether sports betting should be expanded beyond the current in-person options would be on the ballot for the general election in November 2026.
Why this proposal stands out
Crabtree explained that SJR 504 stands apart from earlier failed attempts by linking mobile sports betting directly to Deadwood’s casino sector and requiring servers to be based there. He pointed out that politicians are already concentrating on consumer protection, regulation, and future planning in the event that voters approve the idea, and that the timing is in line with larger national trends.
Similar plans were previously turned down or delayed in South Dakota in 2022 and 2023. Crabtree believes that SJR 504’s primary difference is its clear emphasis on property tax relief. The resolution highlights how the state may redirect money currently leaving South Dakota back to its citizens through tax relief, rather than simply presenting mobile sports betting as an extension of gaming.
Crabtree said, “This one is really focused on making sure that it provides property tax relief. So, we know that revenue is being generated and shipped to surrounding states or online to other areas.”
He also highlighted another major shift: voters would directly decide the issue. By placing the measure on the November 2026 general election ballot, supporters believe it gives citizens a stronger voice and increases transparency about how revenues would be used.
National context and competitive pressure
With 38 states now offering some form of legal sports betting and national online wagering revenue projected to exceed $17 billion by 2029, South Dakota’s Deadwood‑only model increasingly looks outdated. Crabtree said research indicates that many South Dakotans already have online sportsbook accounts registered in other states. Residents, particularly in eastern South Dakota, often travel to Iowa and other neighbouring states to place legal bets.
He explained, “We’ve done some research on the number of folks in South Dakota that are registered as have an online registration to participate in sports, mobile sports wagering in different places. The people of South Dakota have supported gaming, legalised gaming in Deadwood.”
Despite mobile wagering, Deadwood would remain central to the system. Servers for mobile sports betting would be located there, preserving Deadwood’s role as the hub of gaming in the state. Most importantly, Crabtree stressed that any new revenue generated would flow back to South Dakotans in the form of property tax relief.
Addressing the grey market
Offshore sportsbooks already attract South Dakota bettors who lack legal in‑state mobile options. Supporters of SJR 504 argue that legalisation would not only recapture lost revenue but also allow lawmakers to impose safeguards around responsible gambling, college betting restrictions, and consumer protections.
Crabtree argued that legalisation would move bettors into a regulated, transparent environment while allowing the legislature to establish safeguards through future rulemaking. He noted, “So the voters ultimately will decide if this moves forward in November on the general ballot. The legislature would have control when we set that up about putting in the proper guidelines that we need to put in place.”
Further, he emphasised that people are already betting, regardless of legality, and argued that legalisation would allow the state to regulate the activity more effectively while also benefiting financially.
Built-in flexibility
SJR 504 does not attempt to define every technical detail of mobile sports wagering, which Crabtree said is intentional. The resolution’s purpose is to ask voters whether they want online sports wagering and whether its revenue should be used for property tax relief. If approved, lawmakers would then work with Deadwood casino operators and industry professionals to design a regulatory framework.
He stated, “The technical details of that are all to be determined down the road. I think we’re going to be fortunate to work with the professionals who are in Deadwood that operate those casinos now to make sure that we are responsibly doing this.”
This approach allows the state to adapt over time as new technologies emerge, whether that includes esports wagering, new payment systems, or other innovations.
Security and enforcement
The rise of gambling still raises serious issues with match-fixing, illicit apps, and data security. Although Crabtree acknowledged these problems, he stressed that SJR 504 is just the beginning. After the vote, comprehensive rules pertaining to cybersecurity, integrity monitoring, and data protection would be created.
He said, “This bill is really going on and asking the voters if they want us to go forward with offering online sports wagering in South Dakota. And if we do, do they want the revenue generated from that to go to property tax relief? That’s what that does. So, a lot of the rulemaking authority and some of those things that you’re talking about with the technology, those are in our next step for South Dakota.”
He described the process as similar to how South Dakota has handled other gaming expansions: voters decide the direction, and lawmakers build the rules.
Beyond sports betting
Crabtree stressed that SJR 504 has a limited scope. Crabtree explained that the focus right now is simply securing the chance to offer legal mobile sports wagering in South Dakota. He noted that many residents – especially those on the eastern side of the state – are already travelling to Iowa and other states to place bets or turning to illegal and unregulated markets.
According to him, this shows there is strong interest and revenue potential that is currently leaving the state. Legalising mobile wagering, he argued, would not only give people more freedom by reducing what he sees as overregulation, but also create a new source of property tax relief. He clarified, “I think for us, our focus really is on whether or not we have the opportunity to offer legalised sports wagering through mobile devices.”
Voters in South Dakota will ultimately decide in November 2026 whether the state will join the majority of the US in legalising mobile sports betting, tying the industry’s future to Deadwood and a pledge of property tax relief, if SJR 504 makes it through the remaining legislative stages.
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