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United States Supreme Court Issues Decision on State Authority on Sports Betting

FOR IMMEDIATE RELEASE: Monday, May 14, 2018
CONTACT:  Sara Rabern (605) 773-3215     
 
PIERRE, S.D. -  Attorney General Marty Jackley announced today that the United States Supreme Court has repealed a 1992 federal law that prohibits most states from authorizing sports betting.

In order for sports betting to occur in South Dakota, the South Dakota Constitution would first have to be changed. The Legislature would then need to enact specific legislation regulating sports betting.

Two methods exist for amending the South Dakota Constitution and both require the approval of South Dakota voters. First, the Legislature can adopt a joint resolution to put a proposed amendment on the ballot. Second, a proposed amendment can be placed on the ballot through the initiative process.

Below is the article 3 Section 25 of the South Dakota Constitution.

§ 25.   Games of chance prohibited--Exceptions. The Legislature shall not authorize any game of chance, lottery, or gift enterprise, under any pretense, or for any purpose whatever provided, however, it shall be lawful for the Legislature to authorize by law, bona fide veterans, charitable, educational, religious or fraternal organizations, civic and service clubs, volunteer fire departments, or such other public spirited organizations as it may recognize, to conduct games of chance when the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, religious, or other public spirited uses. However, it shall be lawful for the Legislature to authorize by law a state lottery or video games of chance, or both, which are regulated by the State of South Dakota, either separately by the state or jointly with one or more states, and which are owned and operated by the State of South Dakota, either separately by the state or jointly with one or more states or persons, provided any such video games of chance shall not directly dispense coins or tokens. However, the Legislature shall not expand the statutory authority existing as of June 1, 1994, regarding any private ownership of state lottery games or video games of chance, or both. The Legislature shall establish the portion of proceeds due the state from such lottery or video games of chance, or both, and the purposes for which those proceeds are to be used. SDCL 42-7A, and its amendments, regulations, and related laws, and all acts and contracts relying for authority upon such laws and regulations, beginning July 1, 1987, to the effective date of this amendment, are ratified and approved. Further, it shall be lawful for the Legislature to authorize by law, roulette, keno, craps, limited card games and slot machines within the city limits of Deadwood. The entire net Municipal proceeds of such roulette, keno, craps, card games and slot machines shall be devoted to the Historic Restoration and Preservation of Deadwood.

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