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House committee rejects bill to allow sports betting beyond Deadwood
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House committee rejects bill to allow sports betting beyond Deadwood

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Sports Betting South Dakota

This Feb. 21, 2012, file photo shows the Midnight Star Gaming Emporium in Deadwood, S.D. A South Dakota House panel has rejected a measure that would have asked voters if sports betting should be legalized in historic Deadwood. The House State Affairs Committee voted 7-3 Monday against the proposal. The proposed constitutional amendment would have allowed the Legislature to authorize wagering in Deadwood and at tribal casinos. 

PIERRE | A bill that would have allowed sports betting kiosks in South Dakota’s bars and restaurants was defeated Monday morning in the House State Affairs Committee.

HB1211 would have allowed businesses with on sale liquor licenses to have sports betting kiosks connected to a casino in Deadwood.

“You would set up the account, fund the account and be merrily on your way,” said Rep. Mark Willardsen, R-Sioux Falls.

Willardsen said there are three bills in the Legislature that deal with setting up the regulations for sports betting in South Dakota as approved by the voters last November. Willardsen said SB44 requires a physical presence in Deadwood for placing sports bets. SB44 has been approved by the Senate and assigned to the House State Affairs Committee.

HB1211, the bill under discussion, would allow a business with a liquor license to have a betting kiosk connected to a Deadwood casino. “Much like we do with video lottery now,” Willardsen said.

HB1213, up for consideration Tuesday in the House Taxation Committee, would permit placing bets from an electronic device anywhere in the state.

Matt Krogman, representing the S.D. Licensed Beverage Dealers and Gaming Association, said the kiosk would take bets but not pay out money. A winning bet would have that money deposited in the bettor’s account.

Bar owners would get a percentage of the revenue, Krogman said, creating more revenue for Deadwood casinos and small businesses. Krogman said the Deadwood casino would accept the bet and make the payout.

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Opposing the bill was David Wiest, deputy secretary of the Department of Revenue, who noted that passage of HB1211 would open 1,186 businesses in the state to allow sports betting on their premises.

Wiest said that three successful attempts to amend the state constitution specified that gaming take place in Deadwood “not that you could string a line to the bar in Alcester.”

Willardsen said not every one of the 1,186 businesses would allow sports betting. He noted that New Jersey has a similar system that allows people in specific businesses throughout the state to place bets in Atlantic City.

“The casino in Deadwood is in control,” Willardsen said. “We’re just using technology to get there.”

Rep. Kirk Chaffee, R-Whitewood, wondered why there was no supportive testimony from the Deadwood Gaming Association.

Krogman said the association was neutral on the topic and wasn’t interested in the provisions of HB1211 prior to the election. “They weren’t necessarily interested at that time.”

Rep. Tim Goodwin, R-Rapid City, made a motion to send the legislation to the 41st day, a tactic that kills legislation.

“We’re going against what the public wanted when they voted for this,” Goodwin said.

Rep. Oren Lesmeister, D-Parade, agreed. “If we want this statewide, we need to take this back to the voters.”

The bill was moved to the 41st day on a committee vote of 9-4.

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