Deadwood, SD

  • South Dakota passed SB 44 in March, legalizing sports betting in Deadwood – the first bets were accepted on September 9, 2021.
  • Since launch, several Deadwood sportsbooks have been fined by the South Dakota Commission on Gaming for regulatory violations, including accepting illegally large wagers.

DEADWOOD, S.D. – The South Dakota Commission on Gaming says that there have been several regulatory violations committed by Deadwood sportsbooks since the city’s sportsbooks launched on September 9.

Deadwood Sportsbooks Violate Regulations

In March, South Dakota passed SB 44, which authorized, regulated, and taxed sports betting within the city of Deadwood. The legislation included several regulations that sportsbooks must abide by. One of the most notable of these regulations is a $1,000 maximum bet limit which the commission says has been violated numerous times in the three months since launch.

According to the commission, there have been at least six instances in which Deadwood sportsbooks violated regulations by accepting wagers larger than the maximum amount of $1,000. Four of the five operational sportsbooks in Deadwood have received such a citation, the commission says.

Three infractions were committed by Tin Lizzie’s BetMGM Sportsbook, who accepted wagers in the amounts of $1,300, $1,500, and $3,000 on NFL contests. The Gold Dust Sportsbook accepted a wager of $1,550. Cadillac Jack’s reportedly printed two illegal slips for bettors, one worth $1,300 and one worth $3,000.

There is another reported violation that is a bit more peculiar. South Dakota’s sports betting regulations allow futures bets on the NFL, NBA, and the NHL; however, it oddly does not permit MLB futures bets. Despite this, gaming regulators claim that the Deadwood Mountain Grand Sportsbook accepted action for the 2022 MLB season, in violation of the regulations outlined in SB 44.

What Do These Violations Mean For Deadwood’s Sportsbooks?

Fortunately for these sportsbooks, the penalties faced for most of these violations are not particularly steep. As per SB 44, sportsbooks that accept bets in violation of the law are subject to fines between $150 and $300 per accepted bet.

The one sportsbook facing a larger fine is Tin Lizzie’s, who was issued a $2,500 fine for voiding an erroneously accepted $1,500 wager and failing to immediately report the infraction to the gaming commission. If Tin Lizzie’s does not commit another infraction over the next year, they will be refunded $1,500 of the $2,500 fine.

Sports Betting Still A Positive For Deadwood

Despite these infractions, the legalization of sports betting in Deadwood has been overwhelmingly positive for the city. According to the Deadwood Gaming Association, September’s gross gaming revenue rose 14% compared to 2020 – regulators point to legal sports betting as the primary driver of this gain. This trend continued into October, which saw a 20.5% increase in gross gaming revenue compared to 2020, with over $815,000 in wagers placed in October alone.

Mike Rodman, president of the Deadwood Gaming Association, says that Deadwood resorts saw significantly higher occupancy rates in 2021 than 2020, which he also attributed to the rise in legal sports betting.

According to Rodman, the Deadwood Gaming Association will look to add other sports betting authorizations during the South Dakota Commission on Gaming’s meeting this week. Rodman says they will focus on trying to add authorizations for MLB futures bets, as well as expanded collegiate, live, and parlay betting options.

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