SD HB1058

Only persons licensed as a multi-jurisdictional totalizator hub in South Dakota may operate online betting platforms or apps for pari-mutuel wagering on horse or dog races.

Simulcast wagering and interstate combined wagering pools must comply with federal law (15 U.S.C. §§ 3001-3007) as of January 1, 2026.

State tax revenue from interstate combined wagering pools is set at 1.5% of total contributions for the state, the special racing revolving fund, and the South Dakota-bred racing fund each.

Multi-jurisdictional totalizator hubs pay a reduced total state tax of 0.25% of contributions through the hub, split between the special racing revolving fund (0.20%) and the South Dakota-bred racing fund (0.05%).

Online betting operators without a physical presence in South Dakota are taxed based on contributions made by individuals located in the state.