Gambling In South Dakota

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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.

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.

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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.

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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:

  1. Dakota Connection Casino in Sisseton, 155 miles north of Sioux Falls a few miles from the North Dakota border.
  2. Dakota Sioux Casino & Hotel in Watertown, 113 miles north of Sioux Falls.
  3. Fort Randall Casino Hotel in Pickstown, 171 miles southeast of Pierre.
  4. Golden Buffalo Casino in Lower Brule, 61 miles southeast of Pierre.
  5. Grand River Casino and Resort in Mobridge, 108 miles north of Pierre.
  6. Lode Star Casino in Fort Thompson, 60 miles southeast of Pierre.
  7. Prairie Wind Casino & Hotel in Pine Ridge, 199 miles southwest of Pierre.
  8. Rosebud Casino near Valentine, NE, 121 miles south of Pierre on the border to Nebraska.
  9. 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
Dakota

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