Is crypto sports betting legal in South Dakota?

What's legal

State law authorizes wagering on sporting events only within the city limits of Deadwood (SDCL 42-7B-1). Four Deadwood casinos opened sportsbooks on September 9, 2021. The South Dakota Commission on Gaming, part of the Department of Revenue, regulates them, and every gaming participant must be 21 or older.

The law defines advance deposit sports wagering as funding an account with a licensed Deadwood operator and placing bets on the premises of a licensed Deadwood gaming establishment. So no statewide app exists: betting is at the casino, by teller, kiosk or on-premises account.

Each casino sets its own betting menu within the Commission's rules. If you travel to bet, ask about house limits and how winnings are paid before you place a large wager.

Crypto and offshore sites

Deadwood sportsbooks are casino operations, so crypto is not part of legal betting there. Licensed US sportsbooks generally do not take crypto deposits.

Any website that takes South Dakota bets online is unlicensed. That includes offshore crypto sportsbooks.

What's changing

In 2026 the Legislature considered SJR 504, a constitutional amendment for the November ballot that would have allowed sports wagering by mobile or electronic platform. It cleared Senate Taxation 4 to 3 on February 6 and passed the Senate 23 to 10 on February 11. On February 25 the House State Affairs Committee rejected a do-pass motion 6 to 7, then voted 11 to 2 to defer it to the 41st legislative day, which ended its chance of reaching voters this year. A similar proposal could return in a later session.

Tax note

South Dakota has no state income tax, so winnings face federal tax only.

Federal tax applies to every win at your ordinary rate, and a casino may issue a W-2G above set thresholds. Keep records of both wins and losses. The Woyale tax guides explain the federal side, and a tax professional can confirm your reporting duties.

Common questions