Official Summary Text
require licensure for online pari-mutuel wagering pools for horse and dog races, and clarify the application of tax therefor.
Official keyword topics:
Gambling
Licensure
Recreation and Sports
Official sponsor note: Representatives <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4832/Detail">Weisgram</a> (prime), <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4747/Detail">Duffy</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4749/Detail">Emery</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4753/Detail">Goodwin</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4754/Detail">Gosch</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4766/Detail">Hunt</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4767/Detail">Ismay</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4778/Detail">Kull</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4789/Detail">Moore</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4790/Detail">Mortenson</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4791/Detail">Muckey</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4804/Detail">Pourier</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4810/Detail">Reisch</a>, and <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4825/Detail">Van Diepen</a> and Senators <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4788/Detail">Miskimins</a> (prime), <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4741/Detail">Crabtree</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4769/Detail">Jensen (Kevin)</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4787/Detail">Mehlhaff</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4817/Detail">Schoenfish</a>, and <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4829/Detail">Voita</a>
Current Bill Text
Read the full stored bill text
26.50.34 101st Legislative Session 1058
2026 South Dakota Legislature
House Bill 1058
ENROLLED
AN ACT
ENTITLED An Act to require licensure for online pari -mutuel wagering pools for
horse and dog races, and clarify the application of tax therefor.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 42-7-58.5 be AMENDED:
42-7-58.5. In addition to all state laws and applicable rules of the commission,
simulcast wagering and interstate combined wagering pools must comply with 15 U.S.C
§§ 3001 to 3007, inclusive (January 1, 2026).
Section 2. That § 42-7-102 be AMENDED:
42-7-102. Notwithstanding any other provision of this chapter, the commission
may authorize any licensee to participate in an interstate combined wagering pool with
one or more other racing jurisdictions. If a licensee participates in an interstate combined
wagering pool, the licensee may adopt the take-out of the host jurisdiction or facility.
The State of South Dakota receives one and one -half percent of the total
contributed in this state, and the special racing revolving fund and the South Dakota-bred
racing fund must each receive one and one -half percent of the total contributed in this
state. Subject to the provisions of section 3 of this Act, if the licensee participating in the
interstate combined wagering pool is a multi-jurisdictional totalizator hub, the total portion
to be received by the state is one -fourth of one percent of the total contributed through
the hub, of which the special racing revolving fund receives one-fifth of one percent of the
total contributed through the hub and the South Dakota -bred racing fund receives one -
twentieth of one percent of the total contributed through the hub. Any interstate combined
wagering pool may only apply to horse and dog racing authorized by this chapter.
Section 3. That a NEW SECTION be added to chapter 42-7:
26.50.34 2 1058
HB1058 ENROLLED
Only a person licensed as a multi -jurisdictional totalizator hub in this state may
operate an online betting platform or electronic application to offer online pari -mutuel
wagering on a horse or dog race.
A person with a physical presence in this state operating an online betting platform
or electronic application to offer online pari -mutuel wagering on a horse or dog race is
subject to the tax imposed pursuant to § 42-7-102 on multi-jurisdictional totalizator hubs.
A person without a physical presence in this state operating an online betting
platform or electronic application to offer online pari -mutuel wagering on a horse or dog
race is subject to the tax imposed pursuant to § 42-7-102 on multi -jurisdictional
totalizator hubs, except that the tax rate applies to the total contributed through the hub
by individuals in this state on online pari-mutuel wagering pools for horse or dog races.
26.50.34 3 1058
HB1058 ENROLLED
An Act to require licensure for online pari-mutuel wagering pools for horse and dog races, and
clarify the application of tax therefor.
I certify that the attached Act originated in
the:
House as Bill No. 1058
Chief Clerk of the House
Speaker of the House
Attest:
Chief Clerk of the House
President of the Senate
Attest:
Secretary of the Senate
House Bill No. 1058
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________,
2026 at ____________M.
By
for the Governor
The attached Act is hereby
approved this ________ day of
______________, A.D., 2026
Governor
STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________, 2026
at _________ o'clock __M.
Secretary of State
By
Asst. Secretary of State