Gambling In South Dakota
- Gambling Casinos In South Dakota
- Gambling Legal In South Dakota
- Online Gambling In South Dakota
- Gambling Town In South Dakota
- Casinos In South Dakota With Hotels
South Dakota is a state known for its beautiful Black Hills region, stunning prairies of the Badlands National Park, and historic Gold Rush towns. The state’s development has been influenced by its rich Native American and mining histories. Both of these histories share a close connection to gambling and it is no wonder that the state’s legal gambling sites are located either in historic mining towns or on Indian reservations.
This website breaks down all forms of gambling in South Dakota. This page will discuss the state’s gaming laws so that you know exactly what activities are legal in the state. South Dakota was the third state to formalize legal casino gambling. Topics on this page include land-based casinos as well as online gambling, sports betting and more. For a complete overview, you can read the entire page. If you are looking for specific info, I recommend that you use the ‘contents’ menu below to jump straight to the topic you would like to know more about.
South Dakota Gambling: What is Legal in the State
Contents
- South Dakota Gambling: What is Legal in the State
- Online Sports Gambling in SD
- Gambling in South Dakota: An Overview
- Frequently Asked Questions
In South Dakota, gambling winnings are taxable at a rate of 25% above $600. South Dakota applies an additional 5.54% state tax on gambling winnings. For more info, visit the website of the IRS or the South Dakota Government Tax Portal. Upcoming Regulation Changes in South Dakota Betting Law. Our agency is also a member of the South Dakota Council for Responsible Gaming. YOUTH RESPONSIBLE GAMBLING FACTS. A large number of young people report their first gambling experience occurs around 9 to 11 years of age. Lottery scratch tickets have been shown to present a possible gateway to other gambling activities. The Cadillac Jack's Casino is located in Deadwood, South Dakota, in the North of the Black Hills National Forest. The casino offers above 240 slot machines (classical.
The ‘word gambling’ can describe a wide variety of activities. Wagers can be made on anything, such as charitable events or bets between friends. This page, however, will zero in on commercial and large-scale gaming activities including casinos, sports betting, poker, and more. Below we will discuss the legality of each popular South Dakota gambling activity so that you don’t accidentally find yourself playing an illegal game.
Land-based Casinos in South Dakota
South Dakota has a lot to offer its visitors and residents in terms of casino gaming. There are two types of casinos in SD: Commercial and Indian. In total, there are over 35 land-based casinos in South Dakota. Every single commercial gaming location is in the historic mining town of Deadwood. SD is one of the few places in the US that limits its commercial gaming by location, games and prize amounts. To learn more about land-based gaming in South Dakota visit our page dedicated to casinos in South Dakota.
In addition to the state’s 25 commercial gambling halls, players can also visit one of the 12 tribal casinos found on Native American territory in South Dakota. In-terms of the games permitted at South Dakota gambling properties, visitors can expect to find numerous gambling machines (slots) and table games, such as blackjack, poker, craps, and roulette. Indian casinos can offer the same games as the commercial gaming locations in Deadwood.
Online Casino Gambling in South Dakota
Online casino gambling is an extremely popular activity around the world, but there has been a lot of confusion with regards to the legality of online gaming in the United States. The confusion stems from the fact that each state has its own gaming laws, so what may be legal in one place, could be forbidden in another. Online gambling is often in some sort of grey area, not legal, but not expressly forbidden. This isn’t the case in SD. The South Dakota gambling laws state clearly that online gambling in South Dakota is illegal. For this reason, we do not recommend that you trust any websites that claim to accept South Dakotans.
- Slots
- Jackpot Games
- Blackjack
- Roulette
- Sic Bo
- Baccarat
- Poker
- Video Poker
- Scratch Cards
- Bingo
Above is a list of online games that are usually found in legalised markets. As you can see, online casinos offer the exact same games as the ones found in the world’s most prestigious gambling properties. If you look at worldwide trends, it isn’t unreasonable to predict that online casinos will soon overtake their land-based counterparts in the near future as the preferred gaming method. In many markets, it has already surpassed traditional betting. This, however, won’t be happening in SD anytime soon. The laws regulating gambling in South Dakota are clear on the matter for the time being. Online gambling is illegal.
Sports Betting Options in the State
Sports betting in South Dakota doesn’t face the same uphill regulatory battle as online gambling. The Supreme Court’s monumental decision to legalize sports betting has left I up to states to decide whether or not to permit the activity. Currently, wagering on sporting events is illegal, but this may not always be the case.
Gambling Casinos In South Dakota
In 2018, Deadwood casinos began laying the foundation for sports betting by filing a proposed amendment to the state constitution. The amendment proposes the legalization of wagering on sports at land-based commercial and tribal casinos. If the amendment passes the SD Legislature would be required to create a regulatory framework for the activity as well as a tax structure.
Online Sports Gambling in SD
Sports betting qualifies as a form of gaming, and thus is regulated by the South Dakota gambling laws. As a result, online sports betting is illegal in the Mount Rushmore State. The law Section 22-25A-1 claims that gambling is “to directly or indirectly take…money or any valuable thing with the understanding that…the money or valuable thing will be paid or delivered to a person if the payment…is contingent upon the result of a race, contest, or game or upon the happening of an event not known to be certain.” Because, this definition describes wagering on sports, and since online gambling is illegal in South Dakota, there is no legal way to wager on a sporting event in SD.
Daily Fantasy Sports Contests
Daily Fantasy Sports (DFS) contests are extremely popular in the U.S. but there is a lot of confusion out there about whether or not it should be classified as a form of gambling. According to a press release by the SD Attorney General, the jury is out on whether or not DFS contests are gaming. Nevertheless, he stated that “it will not be my intent to seek felony indictments here in South Dakota absent a clearer directive from our state legislature.” In short, Daily Fantasy Sports are not technically legal, but aren’t illegal. Until a clearer ruling has been made, South Dakotans can play DFS contests at popular sites such as FanDuel and Draft Kings.
The South Dakota State Lottery
The South Dakota State Lottery was approved in 1986 and authorized the following year. The first legal games were scratch tickets, followed by video lottery games in 1989. It wasn’t until 1990, however, that the Lottery took its modern form. The South Dakota Lottery became part of the Multi-State Lottery Association which ushered in the era of cross-state and regional lotto games. Today, players can play numerous lotto games as well as participate in nation-wide contests such as Mega Millions. The SD Lotto’s funds go towards the state’s K-12 schools and infrastructure projects. If you’d like to play visit the South Dakota Lottery website and find a retailer near you.
Gambling in South Dakota: An Overview
There are a lot of South Dakota gambling options out there, and although the state is one of the least populous, it still generates a significant chunk of change from commercial and Indian gaming. In 2018, players spent over $106 million on gambling in Deadwood and on VLT machines. This figure is impressive considering the state limits the size of a wagers to $1,000. By far the most popular games in South Dakota are gaming machines. There are over 6,000 in the state’s commercial and tribal locations and over 9,000 machines in non-casino locations. These next paragraphs will take you through a little bit of the state’s legal and gambling history, so you have a better idea about why South Dakota’s gambling landscape developed in the way that it did.
Gambling Laws in South Dakota
The legal gambling age in South Dakota is 21+ years of age at Deadwood/commercial and tribal gaming properties. To participate in the state and national lotteries, or to bet on horse races, you must be 18 years of age or older. Today, legal gambling activities include slots, blackjack, poker, roulette, craps, and keno.
Although the state offers the same games that can be found in Vegas, the actual experience at the casinos is firmly regulated. For example, South Dakota is one of only a handful of states, with legalized gaming that has created a maximum bet limit for players. No single wager can eclipse $1,000. To be honest, this is a reasonable wager, and I say that as somebody with years of gambling experience. Anything larger is quite risky. So you may be asking yourself, how did these South Dakota gambling laws become what they are today.
In 1989, SL ch 374, § 5 legalized slots, craps and roulette within the city of Deadwood. During the same year, ch 374, § 30 established the legal gambling age in South Dakota as twenty-one years or older. Any violation of this law is a Class 1 misdemeanour and may result in the revocation of an establishments gambling license.
Gambling taxes (gaming tax) has been set at 9% on the gross proceeds of the state’s gaming companies. There is also a license stamp fee for each individual card or slot machine located at a casino or non-gambling site. This fee must be paid annually and costs 2,000 dollars.
Before casino gaming arrived in the state, however, there was the Lottery. The lottery was officially approved in 1986 and has been running ever since. Lottery games are available in your standard scratch games, as well as video terminals.
A law from Chapter 22-25A makes it illegal for those in the gambling business to place any bets online. The law makes SD one of the few states that actually has some clarity surrounding online gaming. If a person were convicted of placing internet-based wagers, they could face a penalty of $10,000 and a prison sentence of up to one year. As a result, there are currently no operators that offer legal online casino games to residents of the state.
SD has signed gaming compacts with a few Native American nations. Originally the tribes were allowed to open Class II casinos, but since 2015, South Dakota tribal casinos have been permitted to carry Class III games like keno, craps, roulette, slot machines, blackjack and poker. Indian casinos are legally permitted to offer the same casino games as commercial properties in the Deadwood.
Responsible Gambling in South Dakota
In 2006, state legislators created a designated fund to be used to combat problem gambling behavior in the state. A fund of up to $30,000 was to be spend on addiction treatment and counseling within the South Dakota. Money from the SD Lottery is also allocated for these purposes. The state does not have its own state-specific affiliate for the National Council on Problem Gambling. Nevertheless, there is still a South Dakota Council on Responsible Gaming. The council is underfunded, however, and doesn’t really have a location. This body oversees the gambling helpline in the state (1-888-781-HELP). This number can be found on all Lotto tickets and VLT machines.
A survey conducted of Problem Gambling Services in the United States, estimates that a total of 1.4% of South Dakotan adults exhibit some form of problem gambling behavior. If you are a someone you know thinks they may have a gambling problem, then it is best to reach out to the proper help channels. You can refer hotline above, or contact one of America’s national problem gabling services, such as the National Council on Problem Gambling, Gam-Anon, or Gambler’s Anonymous.
History of Gambling in South Dakota
South Dakota’s history of gambling is a tiny bit more exciting than that of other states in the US and it is intimately tied to the famous town of Deadwood. Deadwood was officially founded in 1876 by ‘squatters’ who had been living in the Lakota territory for some time. General Custer (The same known for Custer’s last stand) found gold in the black hills in 1874. The discovery of gold spurred more Americans to settle in the region. However, the town remained an illegal settlement until 1889 (when the state was formally admitted to the Union).
During this illegal period, the town was flooded with miners, cowboys and gamblers, the most famous of which was ‘Wild Bill’ Hickok. While in Deadwood, South Dakota, Hickok would be killed by a gunshot wound to the back of the head while playing a game of poker. Legends say that Wild Bill was holding two pairs at his time of death: black aces and eights. To this day, that specific hand is known as the dead man’s hand.
Once the South Dakota territory officially became a state, legislatures didn’t wait long to ban gambling. The activity was officially outlawed in 1905 and would remain as such until 1989 when the state legalized gambling in Deadwood only. This was done in an effort to diversify the town’s economy, which up until that point, had relied heavily on the nearby Homestake Gold Mine. Tourists have historically been attracted to the mine, but even more come to Deadwood, SD to experience the city’s gambling atmosphere that is comprised of Vegas-style games, daily re-enactments, sawdust-covered floors and more. The experience when gambling in South Dakota is extremely unique when compared to other gaming locations.
Famous Gamblers from South Dakota
Although players can play live poker games and tournaments at both tribal and Deadwood commercial casinos, there aren’t really any major famous gamblers from SD. When one thinks of notable gamers, poker players are what generally come to mind. This is because the game’s head-to-head format makes for fun entertainment that comes complete with drama, intrigue, and unique player personas. At this time, there are no famous gamblers from the state. In fact, no South Dakotans have eclipsed the $1 million mark for career earnings.
Interesting South Dakota Gaming Facts
South Dakota has a rich and exciting history. The state emerged when America was at a crossroads. The country was expanding west with almost no oversight from the government. This led to a sort of lawlessness in the territory. The interests of American squatters and settlers overruled the treaties and agreements that indigenous people had made with the U.S government. Once the dust from these conflicts settled, South Dakota found itself in the state it is in today. Below are some of the key facts regarding South Dakota gambling.
Population | 888,500 |
---|---|
Median Income | $56,521 |
Largest Land-based Casino | Fort Randall Casino & Hotel |
Gambling Commissioner | South Dakota Commission on Gaming |
Spoken Languages | English, Sioux |
Number of Indian Casinos: | 12 |
South Dakota Tax Authority | South Dakota Department of Revenue |
Link to the State Law | http://sdlegislature.gov |
Gambling Tax | 9% on businesses |
State Website Link | http://sd.gov/ |
South Dakota Gamblers | ‘Wild Bill’ Hickok |
As you can see above, the state doesn’t have that many residents. In addition, casinos are limited to Deadwood and Tribal locations. This suggests that that biggest driver of the industry is tourist dollars. Visitors flock to Deadwood just like many Americans also travel to Vegas.
Conclusion: Haven for Land-Based Gaming
It is evident when reading the article above, that South Dakota is a decent state when it comes to land-based casino options. Residents and visitors can visit one of many Deadwood gambling options as well as SD Indian Casinos. The only requirement is that a person meets the minimum gambling age requirement in South Dakota which is twenty-one years of age. Currently, reservations and Deadwood are the only legal SD gambling location. Should the state’s gambling laws change, we will update this page.
Frequently Asked Questions
On this page you can find all of the relevant info a player needs to know with regards to the legality of gaming in the state of South Dakota. Below you can find a list of the most commonly asked questions we receive from South Dakota gamblers. If you’d like to find a quick answer are helpful info, check out some of the questions below.
Is gambling legal in South Dakota?
Yes, gambling is legal in South Dakota. That being said, there are a few things you should keep in mind. First, online gambling remains illegal in the state. Second, although gambling has been legalized, only small stakes games are permitted. This means the largest wager a player can make on a single game is $1,000.
Where can you gamble in South Dakota?
There are too many places to count that offer legalized gaming in South Dakota. This is because SD is one of a handful of states that allow non-casino locations to carry electronic gaming terminals. When talking about traditional casino locations, SD offers a total of 37.
What is the gambling age in South Dakota?
The legal gambling age in South Dakota varies based on the activity, in which a gamer wishes to engage. All casinos, whether they be commercial or Native American require that players must be 21 years of age or older to play casino games. For pari-mutuel betting as well as the lottery, players must be 18 years old or more.
How many casinos are in Deadwood?
There is actually no limit to how many casinos can be in Deadwood at one time. The only rule is that each casino must hold a valid gaming license from the state’s gambling commission. Currently there are over two dozen commercial casinos in the town of Deadwood. Each property carries different games, so I recommend visiting multiple for a well-rounded experience.
What is the Dead Man’s Hand in Poker?
There is much debate surrounding the actual cards in the dead man’s hand. Legend suggests that the term developed after the murder of notorious outlaw Wild Bill Hickok, while he was playing a game of five-card stud poker. It is rumored that Hickok has a hand of two black aces and two black eights while he was shot. The hole-card remains unknown.
Introduction to South Dakota Slot Machine Casino Gambling in 2020
South Dakota slot machine casino gambling consists of the frontier town of Deadwood’s twenty-two commercial casinos as well as nine tribal casinos. Further, there are over 9,000 video lottery terminal (VLT) style gaming machines at retailers and pari-mutuel sites spread throughout the state.
A minimum theoretical payout limit was been set for slot machines at casinos within Deadwood. Further, monthly return statistics are available for Deadwood’s casinos. Neither are available for tribal casinos in South Dakota.
This post continues my weekly State-By-State Slot Machine Casino Gambling Series, an online resource dedicated to guiding slot machine casino gambler to success. Now in its third year, each weekly post reviews slots gambling in a single U.S. state, territory, or federal district.
Gambling Legal In South Dakota
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Relevant Legal Statutes on Gambling in South Dakota*
The minimum legal gambling age in South Dakota depends upon the gambling activity:
- Land-Based Casinos & VLTs: 21
- Poker Rooms: 21
- Bingo: 18
- Lottery: 18
- Pari-Mutuel Wagering: 18
In 1989, South Dakota was the first state to offer video lottery terminals (VLTs). Regulation of VLTs at bars and taverns is the responsibility of the South Dakota Lottery. Each retailer can have up to 30 machines per gambling license with a limit of 3 permits per operator. There are currently 1,325 such operators.
In the frontier town of Deadwood, children may accompany their parents in most casinos until 8 p.m. South Dakota is the only U.S. gaming jurisdiction which allows minors to be present while their parents gamble.
South Dakota’s American Indian tribes have negotiated and approved tribal-state compacts. These gaming compacts include a sliding scale for how many slot machines each tribal casino may have, specifically:
- 500 gaming machines at the effective date of the compact
- 600 gaming machines after two years
- 750 gaming machines after four years
South Dakota also has two pari-mutuel facilities with horseracing during the spring season, but do not offer slot machines at them. An additional racetrack facility offers dog racing and simulcast betting.
*The purpose of this section is to inform the public of state gambling laws and how the laws might apply to various forms of gaming. It is not legal advice.
Slot Machine Private Ownership in South Dakota
It is legal to own a slot machine privately in the state of South Dakota if manufactured before 1941.
Gaming Control Board in South Dakota
The South Dakota Commission on Gaming regulates casino gambling at casinos located within the city of Deadwood.
South Dakota’s nine federally-recognized tribes have successfully negotiated tribal-state gaming compacts. There are nine tribal commissions, established upon approval of each tribe’s gaming compact. Further, the South Dakota Department of Tribal Relations provides oversight of the tribal casinos.
South Dakota’s final gaming control board is the South Dakota Lottery Commission.
Casinos in South Dakota
There are twenty-two commercial casinos in Deadwood, eleven American Indian tribal casinos, two pari-mutuel racetracks without slot machines, and 1,325 locations with 9,060 video lottery terminals in South Dakota.
The largest casino in South Dakota is Royal River Casino Hotel in Flandreau with 386 gaming machines.
The second-largest casino is Silverado-Franklin Historic Hotel & Gaming Complex in Deadwood with 361 gaming machines.
Commercial Casinos in South Dakota
The twenty-two commercial casinos in the city of Deadwood are:
Tribal Casinos in South Dakota
The nine tribal casinos in South Dakota are:
- Dakota Connection Casino in Sisseton, 155 miles north of Sioux Falls a few miles from the North Dakota border.
- Dakota Sioux Casino & Hotel in Watertown, 113 miles north of Sioux Falls.
- Fort Randall Casino Hotel in Pickstown, 171 miles southeast of Pierre.
- Golden Buffalo Casino in Lower Brule, 61 miles southeast of Pierre.
- Grand River Casino and Resort in Mobridge, 108 miles north of Pierre.
- Lode Star Casino in Fort Thompson, 60 miles southeast of Pierre.
- Prairie Wind Casino & Hotel in Pine Ridge, 199 miles southwest of Pierre.
- Rosebud Casino near Valentine, NE, 121 miles south of Pierre on the border to Nebraska.
- Royal River Casino Hotel in Flandreau, 45 miles north of Sioux Falls.
Other Gambling Establishments
As an alternative to enjoying South Dakota slot machine casino gambling, consider exploring casino options in a nearby state. Bordering South Dakota is:
- North: North Dakota Slots
- East: Iowa Slots and Minnesota Slots
- South: Nebraska Slots
- West: Montana Slots and Wyoming Slots
Each of the links above will take you to my blog for that neighboring U.S. state to South Dakota.
Our South Dakota Slots Facebook Group
Are you interested in sharing and learning with other slots enthusiasts in South Dakota? If so, join our new South Dakota slots community on Facebook. All you’ll need is a Facebook profile to join this closed Facebook Group freely.
There, you’ll be able to privately share your slots experiences as well as chat with players about slots gambling in South Dakota. Join us!
Online Gambling In South Dakota
Payout Returns in South Dakota
A minimum theoretical payout limit of 80% over the expected lifetime of a machine has been set for slot machines at casinos in the tourist town of Deadwood.
The tribal casinos do not have a theoretical payout limit. Furthermore, the South Dakota Lottery provides the odds of winning for VLT electronic gaming machines limited to poker, keno, blackjack, and bingo.
Return statistics are available annually for Deadwood’s casinos from the Gaming Division of the South Dakota Department of Revenue. Release of these annual reports are eleven months after the fiscal year ending in June has passed.
Therefore, the most recent annual report is from June 2019. Included within this report are month-by-month return statistics by slot machine denomination from mid-2018 thru mid-2019.
The annual player win percent (100% minus casino hold percent) at all Deadwood casinos by slot machine denomination was:
- Penny slots: 90.72%
- Nickel slots: 91.01%
- Dime slots: 93.36%
- Quarter slots: 91.17%
- 50-cent slots: 91.98%
- Dollar slots: 92.51%
- 5-dollar slots: 93.13%
- 25-dollar slots: 92.84%
The highest annual player win% went to dime denomination slot machines followed closely by $5 machines. The lowest return went to penny slots.
Summary of South Dakota Slot Machine Casino Gambling in 2020
South Dakota slot machine casino gambling consists of twenty-two casinos in Deadwood, nine tribal casinos, and VLT-style non-slots gaming machines spread throughout the state.
Deadwood casinos have a minimum theoretical payout limit of 80% and annual return statistics available. VLT gaming machines have their odds of winning online. Tribal casinos do not have a payout limit nor return statistics.
Annual Progress in South Dakota Slot Machine Casino Gambling
Gambling Town In South Dakota
In the last year, the Deadwood Gulch Saloon permanently closed.
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By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC