Online wagering platforms accepting bets from within South Dakota on horse and dog races will soon be required to obtain a state license and pay a 0.25% tax under new rules approved by the South Dakota Gaming Commission.
The changes stem from legislation passed during the 2026 session and now head to the Legislature’s Rules Review Committee on July 14. If approved, the rules could take effect about 20 days later.
Supporters say the move will generate new revenue and create fairness for in-state racing. Officials estimate the state could collect $400,000 or more annually, with funds supporting live racing and South Dakota-bred programs.
Currently, South Dakota has no dog racing and only a one-day horse racing event in Fort Pierre. Regulators say the new requirements will also improve oversight and data security for bettors while bringing previously untaxed out-of-state betting operations under state regulation.
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