South Dakota Constitutional Amendment B, Deadwood Sports Betting Legalization Amendment (2020)

South Dakota Constitutional Amendment B
Election date November 3, 2020
Topic Gambling
Status a Approved
Type Constitutional amendment	Origin State legislature
List of South Dakota measuresInitiated Measure 26Constitutional Amendment AConstitutional Amendment BSubmit

South Dakota Constitutional Amendment B, the Deadwood Sports Betting Legalization Amendment, was on the ballot in South Dakota as a legislatively referred constitutional amendment on November 3, 2020. It was approved.

A "yes" vote supported amending the state constitution to authorize the South Dakota State Legislature to legalize sports betting within the city limits of Deadwood, South Dakota, with all net municipal proceeds (defined) dedicated to the Deadwood Historic Restoration and Preservation Fund.

A "no" vote opposed authorizing the legislature to legalize sports betting in Deadwood.

Election results

South Dakota Constitutional Amendment B
Result		Votes	Percentage
Yes		239,620	58.47%
No		170,191	41.53%

Results are officially certified.

Source

Overview

What did Amendment B do?

See also: Constitutional changes and ballot language

The measure amended the South Dakota Constitution to authorize the South Dakota State Legislature to legalize sports betting within the city limits of Deadwood, South Dakota. Going into the election, in Deadwood, blackjack, craps, keno, poker, roulette, and slot machines were legal. Gambling in Deadwood was legalized after the approval of citizen-initiated Amendment B of 1988. Like other authorized forms of gambling within the city, all net municipal proceeds was set to be dedicated to the historic restoration and preservation of Deadwood. In state law, "historic restoration and preservation" of Deadwood was defined to mean "Maintain[ing] its historical background, cultural heritage, and necessary supporting infrastructures."

What is the history of sports betting?

See also: 2018 Supreme Court ruling on sports betting

Sports betting is the act of wagering on the outcome of athletic sporting events. Sports betting was banned at the federal level under the Professional and Amateur Sports Protection Act (PASPA) until a 2018 United States Supreme Court decision, Murphy v. NCAA, overturned that federal ban and allowed states to legalize sports betting.

The Supreme Court found that PAPSA violated the U.S. Constitution's anti-commandeering doctrine, which states that Congress "lacks the power directly to compel the States to require or prohibit acts which Congress itself may require or prohibit."

What other states have sports betting?

See also: Sports betting by state

As of March 2020, 13 states had legalized sports betting. Voters in Arkansas approved legalizing sports betting through Issue 4 in 2018. Voters in Colorado approved sports betting through Proposition DD in 2019. In many other states, legislative bills to legalize sports betting have been introduced.

Text of the measure

Ballot title

The ballot title for this measure was as follows:

“

An amendment to the South Dakota Constitution authorizing the Legislature to allow sports wagering in Deadwood.

”

Ballot summary

The ballot explanation for this measure was as follows:

“

The constitution currently authorizes the Legislature to allow certain types of gaming in the City of Deadwood: roulette, keno, craps, limited card games, and slot machines. The constitution amendment authorizes the Legislature to also include wagering on sporting events as a type of gaming allowed in Deadwood. Under federal law, any gaming authorized by the Legislature to be offered in Deadwood would also be allowed at on-reservation casinos upon amendments to current tribal gaming compacts.

”

Constitutional changes

See also: Article III, South Dakota Constitution

The measure amended section 25 of Article III of the state constitution. The full text of SJR 501 can be found here.

The following underlined text was added and struck-through text was deleted: Note: Hover over the text and scroll to see the full text.

§ 25. Games of chance prohibited--Exceptions.

The Legislature shall may 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 may not directly dispense coins or tokens. However, the Legislature shall may 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, wagering on sporting events, limited card games, and slot machines within the city limits of Deadwood. The entire net Municipal proceeds of such roulette, keno, craps, wagering on sporting events, card games, and slot machines shall be devoted to the Historic Restoration and Preservation of Deadwood.

Readability score

See also: Ballot measure readability scores, 2020

Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure. The FKGL for the ballot title is grade level 16, and the FRE is 17. The word count for the ballot title is 40, and the estimated reading time is 10 seconds. The FKGL for the ballot summary is grade level 14, and the FRE is 27. The word count for the ballot summary is 76, and the estimated reading time is 20 seconds.

Support

Supporters

Officials

• South Dakota State Senator Bob Ewing (R)

Organizations

• Deadwood Gaming Association

Arguments

• South Dakota State Senator and measure sponsor Bob Ewing (R): "Sports wagering is doing extremely well in Iowa at this time. A lot of South Dakota folks that want to participate in this are traveling over to Iowa."
• Deadwood Gaming Association: "We must compete with surrounding gaming jurisdictions’ offerings. Sports wagering is doing extremely well in Iowa, and it will be starting in March in Montana and in May in Colorado. Sports wagering is currently happening in South Dakota ILLEGALLY! When given the option, we believe South Dakotans want to place their sports wagers in a safe, legal and regulated environment."

Official arguments

Ballot Question Pamphlet Arguments: "Deadwood is in my district and as such I’ve willingly carried legislative bills as the prime sponsor in the SD Senate. While some do not gamble or support gaming, I have always supported gaming in Deadwood as it is permissive. No one has to participate. Whether one chooses to wager is solely their own decision. With that said My sponsorship of bills for the Deadwood gaming industry has been successful in adding Keno, Craps, and Roulette. This past session I was successful in helping to add Sports Wagering to be voted on in the upcoming General Election. If passed will add another option for people to support and wager on sporting events. Deadwood will then be on a level playing field competing with other states that allow sports wagering. The tax dollars raised by Deadwood gaming are enjoyed by local cities, schools and the State of South Dakota. I am a proponent of adding sports wagering to assist Deadwood in attracting more people to the beautiful Black Hills which has become a destination city. The whole state enjoys the dollars spent by tourist traveling across South Dakota on their way to Deadwood."

The arguments in support of Constitutional Amendment B in the 2020 Ballot Question Pamphlet were written by South Dakota State Senator Bob Ewing (R).

Opposition

Arguments

• South Dakota State Representative Steven Haugaard (R): "It could take over your life. It’s not in the best interests of the state to expand any aspects of gambling."

Official arguments

Ballot Question Pamphlet Arguments: "Lots of people gamble and you see it every day at the gas station and corner casinos. Conservative estimates indicate nearly 15,000 South Dakotans are PROBLEM GAMBLERS. Many of those are ADDICTED to gambling. That’s equal to the population of Mitchell, Spearfish, Huron,Yankton or Pierre. Many are suffering and some take their own life. Addiction brings deep regret and shame. Many of our friends, family and neighbors are overwhelmed by their gambling addiction. You know them personally. If their pain is too great, they will use a gun, a rope, or pills. That addiction is partly due to the fact that we, the State of South Dakota, cared more about revenue than human lives. Suicides are happening every week across our state. Sports betting would be a stumbling block for many people. The pandemic has taught us that we need to respect and care for our fellow man. Some say that you cannot legislate morality. If this was true, then we wouldn’t have any laws. It would simply be survival of the fittest, but that isn’t who we are. We do make laws for the public good. South Dakotans care for one another. This isn’t a liberty issue or a revenue issue, this is a life issue. Sports can already be an obsession. It shouldn’t be a training ground for young people to develop a gambling addiction. The few dollars that would come from sports betting pales in comparison to the damage it causes. We are the second most gambling dependent state in the nation. We don’t need to make that worse. No one should take advantage of vulnerable people. Don’t vote for a new form of suffering. Join me in voting for families free from addiction. VOTE NO on Sports Betting."

The arguments in opposition to Constitutional Amendment B in the 2020 Ballot Question Pamphlet were written by South Dakota Speaker of the House Steven Haugaard (R).

Campaign finance

See also: Campaign finance requirements for South Dakota ballot measures

Total campaign contributions:
Support:	$0.00
Opposition:	$0.00

Ballotpedia did not identify committees registered with the South Dakota Secretary of State to support or oppose the amendment. If you are aware of any supporting or opposing committees, please send an email to editor@ballotpedia.org.

Background

2018 Supreme Court ruling on sports betting

In 2017, the U.S. Supreme Court heard arguments in a case, Murphy v. NCAA (originally Christie v. NCAA), regarding the legality of a law implementing New Jersey Public Question 1 (2011). On May 14, 2018, the U.S. Supreme Court ruled 7-2 that the federal government could not require states to prohibit sports betting, thereby overturning the federal ban on sports betting and allowing states to legalize sports betting if they wish.

The Professional and Amateur Sports Protection Act (PASPA) and Murphy v. NCAA

See also: Murphy v. NCAA

Murphy v. NCAA (originally Christie v. NCAA) was a case about the anti-commandeering doctrine, which is based on the Tenth Amendment to the United States Constitution and dictates that Congress cannot commandeer state governments to enforce federal law. The question, in this case, was whether the Professional and Amateur Sports Protection Act (PASPA), a federal law that prohibits states from authorizing sports gambling, violated the anti-commandeering doctrine.

The United States Congress passed PASPA in 1992. The act prohibited any governmental entity, including states, from sponsoring, operating, advertising, promoting, licensing, and/or authorizing by law any wagering scheme on amateur or professional team games. However, PASPA contained certain exemptions. One of those exemptions allowed New Jersey to enact a sports gambling scheme if the scheme were written into law within one year of PASPA's enactment. At that time, New Jersey declined to implement such a scheme, and the one-year exemption under PASPA expired.

Then, in 2011, New Jersey voters approved an amendment to the New Jersey Constitution authorizing the legislature to legalize betting on the results of professional, college, and amateur sporting events.

Based on the amendment, New Jersey passed the Sports Wagering Act of 2012. The law provided for regulated sports wagering in New Jersey's casinos and racetracks and established a state regulatory scheme for sports wagering in the state. Four professional sports leagues (the National Football League, Major League Baseball, the National Basketball Association, and the National Hockey League) and the National Collegiate Athletic Association (NCAA) (referred to together as the leagues) filed a lawsuit in federal court to stop enforcement of the New Jersey law, arguing that it violated PASPA. In response, New Jersey acknowledged that the law violated PASPA, but argued that PASPA violated the anti-commandeering doctrine and was therefore unconstitutional.

States with sports betting

As of September 1, 2022, sports betting was legal, or laws to legalize had been approved, in 36 states and D.C. The following map shows the status of sports betting in each state.

Sports betting ballot measures

As of 2021, five of the states to legalize sports betting did so through a ballot measure. All of the ballot measures were approved by voters.

State	Year	Measure	Type	'Yes' Percent	'No' Percent	Outcome
New Jersey	2011	Public Question 1	Legislative	63.91%	36.09%	a
Arkansas	2018	Issue 4	Initiative	54.10%	45.90%	a
Colorado	2019	Proposition DD	Legislative	51.41%	48.59%	a
Maryland	2020	Question 2	Legislative	67.07%	32.93%	a
South Dakota	2020	Amendment B	Legislative	58.47%	41.53%	a

History of gambling in Deadwood, South Dakota

Gambling in Deadwood was legalized after the approval of citizen-initiated Amendment B of 1988. The measure was approved by a vote of 65% to 36%. The measure amended the constitution to authorize limited card games, craps, roulette, keno, and slot machines in Deadwood, with proceeds devoted to the historic restoration and preservation of Deadwood. The South Dakota Legislature passed legislation providing for gambling in Deadwood in the 1989 legislative session. In state law, "historic restoration and preservation" of Deadwood was defined to mean "Maintain[ing] its historical background, cultural heritage, and necessary supporting infrastructures."

Gaming tax revenue and dedications

According to South Dakota Codified Law 42-7B-48, 40% of the gaming tax revenue is deposited to the Tourism Promotion Fund and 10% is given to Lawrence County; then, funds are used to pay for the administration and operation of the South Dakota Gaming Commission. After these disbursements, $100,000 is dedicated to the Historical Preservation Loan and Grant Fund. Any remaining funds are the net municipal proceeds, which are given to the City of Deadwood for deposit in the Historic Restoration and Preservation Fund. Once the net municipal proceeds given to the City of Deadwood reach $6.8 million for the year, any remaining funds are distributed as follows:

• 70% to the state general fund;
• 10% to Lawrence County municipalities;
• 10% to Lawrence County school districts; and
• 10% to the City of Deadwood to be deposited in the Historic Restoration and Preservation Fund.

In 2019, the City of Deadwood received $6,843,921.54 for deposit in the Historic Restoration and Preservation Fund. The Historical Preservation Loan and Grant Fund received $100,000. To view the full Commission on Gaming 2019 annual report, click here.

Path to the ballot

See also: Amending the South Dakota Constitution

To put a legislatively referred constitutional amendment before voters, a simple majority vote is required in both the South Dakota State Senate and the South Dakota House of Representatives.

This amendment was introduced as Senate Joint Resolution 501 on January 30, 2020. Senate Joint Resolution 501 was passed in the Senate on February 11, 2020, in a vote of 24-10, with one excused. Of the 30 Republicans in the Senate, 20 voted in favor, nine voted against, and one was excused. Among the five Senate Democrats, four Democrats voted in favor and one voted against. It was sent to the state House where it passed on March 3, 2020, by a vote of 36-27 with seven representatives excused. Among Democrats, seven were in favor and three were against. Among Republicans, 29 were in favor and 24 were against.

Vote in the South Dakota State Senate February 11, 2020
Requirement: Simple majority vote of all members in each chamber
Number of yes votes required: 18  a
	Yes	No	Not voting
Total	24	10	1
Total percent	68.57%	28.57%	2.86%
Democrat	4	1	0
Republican	20	9	1

Vote in the South Dakota House of Representatives March 3, 2020
Requirement: Simple majority vote of all members in each chamber
Number of yes votes required: 36  a
	Yes	No	Not voting
Total	36	27	7
Total percent	51.4%	38.6%	10.0%
Democrat	7	3	1
Republican	29	24	6

How to cast a vote

See also: Voting in South Dakota

Click "Show" to learn more about voter registration, identification requirements, and poll times in South Dakota.

How to cast a vote in South Dakota

The information below covers regular voting policies in the state. Information may have not applied to the election on November 3, 2020, because of temporary changes in response to coronavirus. Click here to read about changes made for the 2020 elections. Poll times In South Dakota, all polls are open from 7 a.m. to 7 p.m. If the polls close while you are still in line, you will be permitted to vote. South Dakota is divided between Central and Mountain time zones. Registration requirements Check your voter registration status here. To register to vote in South Dakota, an applicant must be a citizen of the United States, a resident of South Dakota, and at least 18 years old by the day of the next election. The deadline to register to vote is 15 days before the next election. To register, an applicant may submit a voter registration form to the county auditor. Prospective voters can also register in person at the county auditor's office, driver's license stations, certain public assistance agencies, or military recruitment offices. Automatic registration South Dakota does not practice automatic voter registration. Online registration See also: Online voter registration South Dakota does not permit online voter registration. Same-day registration South Dakota does not allow same-day voter registration. Residency requirements To register to vote in South Dakota, you must be a resident of the state for at least thirty consecutive days. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States South Dakota does not require proof of citizenship for voter registration. An individual applying to register to vote must attest that they are a U.S. citizen under penalty of perjury. All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. One state, Ohio, requires proof of citizenship only when registering to vote at a Bureau of Motor Vehicles facility. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters. Verifying your registration The South Dakota Secretary of State’s office allows residents to check their voter registration status online by visiting this website. Voter ID requirements South Dakota requires voters to present photo identification while voting. Voters can present the following forms of identification: South Dakota driver's license or nondriver ID card U.S. government photo ID U.S. passport U.S. Armed Forces ID Current student photo identification card from a South Dakota high school or South Dakota accredited institution of higher education Tribal photo ID If a voter does not have a photo ID, he or she can sign a personal identification affidavit. The voter will then be given a regular ballot.

See also

2020 measures

• 2020 ballot measures
• Gambling on the ballot

South Dakota

• South Dakota ballot measures
• South Dakota ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Full Text of SJR 501
• 2020 Ballot Question Pamphlet