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South Dakota Approves Sports Betting Rules

The beginning of the NFL is a realistic start date for South Dakota sports betting. This is exciting news for football fans throughout the state. The beginning of football season was in question before the South Dakota Gaming Commission recently amended and passed the final draft of sports betting rules.

With the rules established, the sports betting implementation process can begin in South Dakota. The next step for the commission is to approve the sports betting rules on August 2. After this date, the next gathering is on September 8, and this is when operators will be approved.

There will only be retail sports betting allowed in South Dakota, so if the commission sticks to its current timetable, there will be wagering when the NFL season opens on September 9. The NFL opener will feature the defending Super Bowl champions Tampa Bay Buccaneers against the Dallas Cowboys.

Details of the Finals Rules

The South Dakota Gaming Commission did not change many of its original rules in the final draft. The main alteration is that federal excise taxes are no longer allowed to be removed from sports betting revenue.

The required tax rate for operators is 9% for sports betting revenue. The application fee is a modest $5,000. The tax rate and application fee are very low relative to other retail betting rates in the United States.

This fee covers background checks, record keeping, and surveillance of operators once sports betting launches. The original rules were drafted in May, and there are some interesting regulations that license holders must follow.

Sports betting equipment will be recorded like table games on casino floors. There will also be frequent equipment inspections by the South Dakota Gaming Commission. Additionally, gambling suppliers cannot bet on the sports betting equipment they provide to casinos.

Betting Exclusively in Deadwood

Deadwood, South Dakota, is the only part of the state where sports betting will be offered in the state. This will indefinitely take revenue away from the state. There was an effort to include mobile betting in the state, but this was shot down.

Proponents of widespread mobile betting attempted to make the case that mobile betting would be legal if the servers were in Deadwood. Although, this was not the majority opinion throughout the state.

There is an insatiable appetite for sports betting in South Dakota. Residents voted to approve sports betting at Deadwood casinos in droves during the November 2020 election. The legislature swiftly established a betting bill which Governor Kristi Noem signed on March 18.

Under the sports betting bill, SB 44, bettors can place wagers at windows, kiosks, or mobile apps inside casinos. The mobile app will not work outside of an individual casinos’ property.

The mobile betting feature will require people to register in person at a specific Deadwood casino. Not allowing mobile sign-up will likely make people bet from kiosks and at windows. There will also be no bets allowed on South Dakota college teams.

There will be wagers allowed on college sports. However, props are prohibited in all amateur competitions.

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