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South Dakota Revenue Department Presents Recommendations for Eventual Sports Betting Legislation

Having in mind the growing love for sports, it barely surprises anyone that sport betting companies are thriving and generating huge profits. The number of sports-loving fans across the globe is rapidly growing and it does not show any signs of slowing down. Unfortunately, the legal issues surrounding sports betting have been the stumbling block for the development of legal sports betting market in the U.S.

The issue finally made its way to the U.S. Supreme Court, which is to decide the future the Professional and Amateur Sports Protection Act (PASPA), a federal anti-gaming law that aims at stopping the spread of sports betting outside Nevada, Oregon, Delaware and Montana. According to the latest news, South Dakota’s Department of Revenue has already presented a “white paper”, addressing the potential of the sports betting development within the state. The “white paper” may pave the way for sports betting legislation in South Dakota if given the opportunity.

The state Revenue Secretary Andy Gerlach revealed that South Dakota Gov. Dennis Daugaard supported New Jersey in its sports betting case to legalize sports betting and strike down PASPA. Last week, Gerlach’s department released a copy of the “white paper” that contains recommendations related to eventual sports betting legislation.

Mr. Gerlach explained that the state should be prepared for a change to the South Dakota Constitution, supposing that the U.S. high court repeals PASPA. The Legislature is allowed to propose constitutional amendments for statewide votes if the proposal wins the support of the majorities in the Senate and the House of Representatives.

What are the Recommendations Included the “White Paper”

Among all other things, the state Revenue Secretary’s advice is to give more powers to the Commission on Gaming to oversee sports betting operations. Here it is interesting to mention that the Commission on Gaming is responsible for regulating betting on horse and dog races and Deadwood gambling houses. South Dakota’s gambling regulator, on the other hand, is overseen by the state Department of Revenue.

In that sense, the “white paper” also recommends that only establishments that are licensed by the Commission on Gaming should be authorized to offer sports betting. Apart from that, the revenue department also suggests that individuals should be prohibited from receiving licenses to legally accept bets.

An interesting aspect of the “white paper” is the idea that all South Dakota establishments that are allowed to accept sports bets should be part of a large pool of bets. Pools betting is pretty much the same as most the lotteries, where all players buy tickets and the jackpot is shared among all winners.

The “white paper” also outlines that the tribal gambling compacts should be amended, so that the local tribal casinos can offer this type of gambling activity at their casinos. Under the current federal law, the local tribes are allowed to offer gambling games, which are pre-approved by the state law. Even though South Dakota is preparing to capitalize on future potential regulatory developments, the lawmakers should examine the aforementioned recommendations and consider their inclusion in the legal framework.