SD Senate Advances Mobile Sports Betting Measure for Voter Approval

Proposed constitutional amendment would dedicate 90% of tax revenue to property tax relief

Published on Feb. 12, 2026

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The South Dakota Senate voted 23-10 to approve a resolution that would ask voters to legalize mobile sports betting and use the tax revenue to reduce property taxes. If the state House also approves the resolution, it will go on the November 3 ballot. The measure is seen as a way to capture revenue that is already flowing to neighboring states with legal mobile sports betting.

Why it matters

South Dakota currently only allows sports betting in Deadwood and tribal casinos, while mobile sports betting is legal in neighboring states like Iowa and Wyoming. Legalizing mobile sports betting could generate new tax revenue for the state, but there are concerns about the potential for increased gambling addiction.

The details

Senate Joint Resolution 504, introduced by Sen. Casey Crabtree, R-Madison, would dedicate 90% of tax revenue from mobile sports betting to replacing property taxes if voters approve the constitutional amendment. The resolution does not need the governor's signature to appear on the ballot - it just needs majority approval from both legislative chambers.

  • On February 11, 2026, the South Dakota Senate voted 23-10 to approve the resolution.
  • The resolution will now go to the state House of Representatives for consideration.
  • If approved by the House, the measure will appear on the November 3, 2026 ballot for voter approval.

The players

Casey Crabtree

A Republican state senator from Madison who introduced the resolution to legalize mobile sports betting.

Steve Kolbeck

A Republican state senator from Brandon who argued the measure would bring economic benefits to South Dakota towns near the borders with Iowa and Wyoming, where mobile sports betting is already legal.

Amber Hulse

A Republican state senator from Hot Springs who supports the measure, seeing it as a way to set up safety measures and guardrails around mobile sports betting.

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What they’re saying

“This is us having revenue out there that we're not collecting, just like when Amazon was new, we had to go get that. We had to adjust as a state. Now we have this situation that this body needs to react to and adjust to so that revenue can come back into our state coffers.”

— Steve Kolbeck, State Senator (aberdeeninsider.com)

“You can't legislate morality, but guess what? These people are already doing it. They're already doing it on the black market. They're already potentially making bets that are hurting their families more. So why don't we put some guardrails on it and help protect some families so that there aren't as many harms being done by this, especially to our communities?”

— Amber Hulse, State Senator (aberdeeninsider.com)

What’s next

If the state House of Representatives also approves the resolution, it will go on the November 3, 2026 ballot for voter approval.

The takeaway

South Dakota's move to legalize mobile sports betting and dedicate the tax revenue to property tax relief reflects a broader trend of states seeking to capture revenue from an activity that is already occurring in the black market or in neighboring states. However, concerns about gambling addiction remain, and the measure aims to balance revenue generation with consumer protection.