South Dakota is another step closer to legalizing sports betting within its territories and so is Connecticut after finalizing a gaming agreement last week.
This is quite great news for the local punters of these states. While the local operations of sports betting within these territories are illegal, it isn’t federally illegal for Americans to place their bets on casinos and bookies based offshore. They could still frequent betting sites in India, compare odds and bonuses too without getting in any trouble.
Still, because of this, these states are missing out on potential sports betting tax revenues. They surely know this as both states are already taking steps towards legalizing local sports betting operations. Sports betting could help boost their local economies when regulated the right way.
In South Dakota, Governor Kristi Noem has finally signed Senate Bill 44 into law. This means that this bill will now only require the approval of the state’s voters this November. Once the voters approve, the state should be able to start local sports betting operations in Deadwood on September 1, 2021.
It was in November when the passing of this bill happened. It was after 58.8 percent of the locals expressed that they are in favor of legalizing sports betting in the state. This Senate Bill was cleared by the local Senate with a vote of 32-2 in February.
Based on the bill, people who wish to place sports bets will first have to register at a licensed casino in person. After this, they can choose to place their bets with their mobile devices within the premises of the casino.
How much tax the operators are required to pay and how many licenses that the state will be issuing is still not part of the bill, but the cost of the licenses will cost 2,000 US dollars. The annual renewal fee will then also be 2,000 USD.
When it comes to betting limitations, the locals of South Dakota will not be allowed to place bets on high school sports, minor league sports, and sports in colleges inside the state. Prop bets on college athletes will also not be allowed.
For now, since this state still doesn’t have legal local betting operations, neighboring states are benefiting from this, particularly the state of Iowa.
Connecticut’s Progress in Legalizing Sports Betting
Any gambling activity in Connecticut is still illegal at the moment unless it is specifically authorized by the law. However, when it comes to online betting, there are no local laws that have something to say about this and this is why the locals are free to visit online casinos and bookies.
Recent developments, however, suggest that the state may have legal online sports betting before the NFL season. This is after the governor’s office and one of the state’s major gaming tribes were able to finalize a gaming agreement last week.
According to CT Governor Ned Lamont, he was able to reach agreements with the Mashantucket Pequots and the Mohegans. Both are known to be each operating the Foxwoods casino and the Mohegan Sun Casino.
Based on the agreement, the tribes will gain exclusive rights to offer online casino games like blackjack and poker, and also sports betting, and the state lottery.
This isn’t the first time that the local government attempted to seal a deal with the local tribes who are running the state’s casinos. There have been multiple attempts for several years and several governors simply failed.
Based on the said agreement, the state should receive 18 percent of the online casino revenues. For online sports betting, the state should get 13.75 percent. The agreement will also last for as long as 15 years.
According to David Lehman, the commissioner of economic development for the state, the legislature will consider the expansion as part of its budget debate in May and June of this year. If this gets approved, the terms will then go to the federal Bureau of Indian Affairs for them to review the new contract with the tribes.
“Connecticut is on the cusp of providing a modern, technologically advanced gaming experience for our residents, which will be competitive with our neighboring states,” Lamont said in a statement. “Our state’s tribal partners have worked with my administration thoughtfully, deliberately, and constructively for the past few months, and we have achieved an agreement that is best for Connecticut residents and their respective tribal members.
“We will work to see it ratified and look forward to doing so through a collaborative effort, to include working with elected leaders in the General Assembly,” Lamont said.