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South Dakota is perhaps best known for its concentration of casinos in Deadwood, but it is also home to numerous tribal casinos, a state lottery, bingo gambling and sports betting. Like other states, South Dakota isn't as liberal regarding online gambling, with most internet-based betting activities illegal in the Mount Rushmore State. Read on for full details of South Dakota's gambling laws, both offline and online.

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Gambling laws in South Dakota are detailed in 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 gambling activities and legal, such as casino gambling, bingo, lottery and, added recently, betting.

Online gambling, however, is still largely illegal. The South Dakota Commission on Gaming is the main gambling regulator in the state. Here's a closer look at how South Dakota's gambling laws affect each type of gambling activity.

Casino Games

Casino gambling is legal in South Dakota, with the state home to more than 30 licensed gambling venues. These range from small slots halls to larger casinos with table games such as Blackjack, Roulette and Poker. Casinos were originally legalized 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 of the casinos currently in operation are run by Native American tribes. The South Dakota Lottery also operates video lottery terminals (VLTs) in various gas stations and bars across the state.

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

Poker

Poker gambling is legal in South Dakota, but only limited games are permitted: no-limit games are not allowed anywhere in the state. 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 gambling is illegal in South Dakota. Local poker room operators are not permitted to run online games, and there is no avenue for foreign poker sites to access the South Dakota market through licensing. Those resident in the state wishing to play poker online can still do so, with little likelihood of prosecution.

Bingo

Bingo gambling is legal in South Dakota, but prizes are limited to $2,000. Games are permitted to be offered by charitable organizations, but tribal casinos can also host games across the state.

Online gambling is deemed illegal according to existing state gambling laws. Land-based operators are not permitted to offer games online, and offshore bingo casinos online have no licensing options in the state. South Dakotans can still access such sites with little chance of being prosecuted.

Lotteries

Lottery gambling is legal in South Dakota, with the South Dakota Lottery offering residents the ability to buy tickets for popular draw-based games such as Mega Millions, Powerball and Lucky For Life, plus instant games and scratch cards. The company also owns the many video lottery terminals within the bars and gas stations scattered across the state.

Online lottery gambling is illegal in South Dakota. 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.

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Social casinos that allow you to play casino games using only play chips are permitted in South Dakota. However, home-based poker games are not exempt from state gambling laws, meaning they are technically illegal. More modern forms of gambling, such as loot boxes and skins gambling, are yet to be defined in terms of gambling laws, so these activities are unregulated for now.

In many states, cryptocurrencies are seen as a form of monetary value but not legal tender, meaning virtual coins cannot be accepted by local businesses, including casinos and other gambling venues. South Dakotans 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.

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

Parimutuel betting on horse racing is legal in Mount Rushmore State, with live betting available at the state's two racetracks and off-track simulcast betting allowed at tracks more than 50 miles away. Online horse racing betting is also legally permitted in the state, with residents allowed to bet on horse racing online via top sites such as TwinSpires.

Current gambling laws do not explicitly mention daily fantasy sports, with top operators such as FanDuel and DraftKings arguing that their games are ones of skill rather than chance and, therefore, do not fall under gambling definitions in the state. These sites freely accept residents of the state as members.

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The legal gambling age in South Dakota is 18 for lottery games and 21 for video lottery games, casino games, horse racing betting and sports betting.

Tax Regulation

South Dakota gambling tax regulation requires casino and sports betting operators to pay a 9% tax on gross revenue. Residents of South Dakota can enjoy their winnings tax-free at the state level, but they are still liable for the 24% withholding tax charged by the federal government.

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South Dakota's gambling laws date back to 1905, when gambling was officially banned in the newly formed state. The South Dakota Lottery was founded in 1987.A constitutional amendment legalized the operation of casinos in 1989, a move designed to inject new life into Deadwood and prevent the area from becoming a ghost town. Sports betting was legalized in South Dakota in 2020.

Key Facts

South Dakota is fairly restrictive regarding real money betting, particularly when it comes to online gambling. Here's a reminder of the key points on gambling laws in South Dakota:

• Casino gambling is legal in South Dakota, with around 30 casinos, both commercial and tribal, operating in the state.
• Online casino gambling is deemed illegal.
• Poker gambling is legal and available at several of the state's land-based casinos.
• Online poker gambling is illegal.
• Bingo gambling is legal and offered by both charitable organizations and tribal casinos.
• Online bingo gambling is illegal.
• Lottery gambling is legal via the South Dakota Lottery.
• Online lottery gambling is illegal.
• Sports betting is legal and offered at several commercial and tribal casinos.
• Online sports betting is illegal (although this may soon change).
• Horse racing betting is legal in both offline and online forms.
• Daily fantasy sports betting is unregulated but offered.