Mobile gambling in South Dakota takes step toward ballot, still faces toughest test

PIERRE — A split South Dakota Senate signed off Monday on a proposal to place the question of statewide online sports betting on the next ballot.

But the 18-17 vote to move Senate Joint Resolution 502 off the Senate floor and over to the House of Representatives could spell trouble the measure.

Backed by the Sports Betting Alliance, a coalition of professional sports teams and betting platforms like Draft Kings and Fan Duel, the measure would allow voters to decide if sports betting should be legal via mobile devices and internet websites from anywhere in the state.

Right now, sports wagers can only be placed within the city of Deadwood.

More: Should mobile sports betting be legal anywhere in South Dakota? Some lawmakers think so

"Sports wagering is here and prevalent," said Sen. Kyle Schoenfish, R-Scotland. "With this vote, we can have it in the safest, smartest manner that will give South Dakota the most benefit."

Despite the Senate's passage, banking on SJR 502 ending up on the ballot is anything but a safe. That's because the state House, where it will next be considered, will be the measure's toughest test yet.

Last year, a bill aimed at expanding state gaming rules to allow online gaming was killed in that chamber. And social conservatives aren't any more enthusiastic about it this year.

That's not to mention some Republicans, as well as the Senate, who prefer a competing bill to allow online sports betting outside of Deadwood but only via bars and other establishments that develop business partnerships with traditional Deadwood casinos.

"By having a kiosk in that location where those folks can walk into that location, spend their time, spend their money, watch the games on the TV, and place their bets through the kiosk to Deadwood, South Dakota," said Sen. Jack Kolbeck, R-Sioux Falls. "That's what I thought this was all going to be about."

But backers of SJR 502 said there's room within the ballot proposal to also incorporate kiosk betting at brick and mortar locations across South Dakota. And allowing voters to have the final say will ensure that's what they want, said Jeromy Pankratz, a South Dakota lobbyist representing the Sports Betting Alliance.

"We hope the House will continue to follow their long tradition of promoting liberty and personal responsibility by allowing the public to vote for this opportunity," he said.

This article originally appeared on Sioux Falls Argus Leader: Mobile sports betting in South Dakota gets closer to the ballot