Gambling Laws in South Dakota

South Dakota is perhaps best known for its concentration of casinos in Deadwood, but it is also home to numerous tribal venues. Like many other states, it isn't as liberal regarding online gambling with most internet-based activities remaining illegal in Mount Rushmore State.

Which Types of Gambling Are Legal in South Dakota?

Gambling regulations are detailed in the South Dakota Codified Laws, Chapters 21-6, 22-5 and 42-7B, which outline that unlicensed gambling is illegal in the state. That said, numerous activities are legal, such as casino gambling, bingo, lottery and sports betting. Online gambling still remains illegal.

The South Dakota Commission on Gaming is the main regulator in the state.

Betting at Offline and Online Casinos

Casino gambling is legal in South Dakota, with the state home to more than 30 licensed venues. These range from small slots halls to larger casinos with table games such as blackjack, roulette and Poker. Casinos were originally legalised in the late 90s to save the city of Deadwood, which was quickly becoming deserted and abandoned. Today, at least 20 of the state's casinos are in Deadwood. Nine are also operated by Native American tribes.

Online casino gambling is not specifically mentioned in South Dakota gambling laws but is deemed illegal by default. Residents can play various online casino slots and other games via offshore sites. While this may be deemed illegal, authorities show little interest in prosecuting individual players.

Poker Gambling

Playing poker with real money is legal but only limited versions are permitted and no-limit games are banned. Ten poker rooms operate within South Dakota's borders, 4 of which are in Deadwood, while the rest are hosted within tribal casinos.

Online poker is illegal and even local room operators are not permitted to run such games. South Dakota is also closed to allowing foreign online gambling sites to access residents, even via state licensing.

Playing Bingo

Bingo is legal in South Dakota but prizes are limited to $2,000. Games are mostly offered by charitable organisations and tribal casinos.

Online gambling is deemed illegal via existing laws. Therefore land-based operators are not permitted to offer games and offshore bingo casinos online have no licensing options in the state either.

Lottery Tickets, Instant Win Games and Keno

Lotto gambling is legal, with the South Dakota Lottery offering tickets for popular draws such as Mega Millions, Powerball and Lucky For Life, plus instant wins and scratch cards. The company also owns the many video lottery terminals within the bars and gas stations scattered across the state.

The South Dakota Lottery is not permitted to offer online lottery games for real money, with their website only providing information on games and where to play.

Social Casinos and Online Crypto Casinos

Social casinos that allow gameplay using coins and credits are permitted in the state, so long as money is not involved. However, home-based poker games are not exempt from state gambling laws and these are technically illegal. More modern forms of gambling, such as loot boxes and skins are yet to be defined in terms of current laws and remain unregulated for now.

Cryptocurrencies do hold a monetary value in South Dakota but are not classed as legal tender. This means that virtual coins cannot be accepted by local businesses, including casinos. Residents looking for a way to play casino games with Bitcoin and altcoins can do so via crypto gambling sites, with prosecution for doing so highly unlikely.

What Are the South Dakota Sports Betting Laws?

Sports betting is legal, with many of the casinos in Deadwood and several tribal casinos offering a variety of markets. Online sports betting is illegal, although efforts are being made to change this.

Parimutuel betting on horse racing is permitted with live betting available at the state's two racetracks. Online horse race betting is also legally permitted, with residents allowed to wager via top sites such as TwinSpires.

DFS betting is a grey area as it is not specifically mentioned in current laws. Top operators such as FanDuel and DraftKings argue that their games are ones of skill rather than chance and should not fall under current gambling definitions. These sites freely accept residents of the state as members.

Minimum Gambling Age Restrictions

The legal gambling age in South Dakota is 18 for lotto and 21 for casino games and sports betting.

Tax Regulations on Gambling Winnings

These require casino and sports betting operators to pay a 9% tax on gross revenue. Residents can enjoy their winnings tax-free at the state level but are still liable for the 24% withholding tax charged by the federal government.

History of Gambling Laws in South Dakota

-Laws date back to 1905, when gambling was officially banned in the newly formed state. 

-The South Dakota Lottery was then founded and legalised in 1987. 

-A constitutional amendment legalised the operation of casinos in 1989. This was a move designed to inject new life into Deadwood and prevent the area from becoming a ghost town.

-Sports betting was legalised in South Dakota in 2020.

Key Facts

• Casino gambling is legal, with around 30 casinos, both commercial and tribal operating in the state.

• Online casino gambling is deemed illegal. This covers poker, bingo, sports betting and taking part in the lotto.

• Poker gambling is legal and available at several of the state's land-based casinos.

• Bingo gambling is legal and offered by charitable organisations and tribal casinos.

• Lottery gambling is legal via the South Dakota Lottery.

• Sports betting is legal and offered at several commercial and tribal casinos.

• Horse racing betting is legal in both offline and online forms.

• Daily fantasy sports betting is unregulated but still offered.