This bill amends existing South Dakota law to establish licensure requirements for online pari-mutuel wagering pools related to horse and dog racing. Specifically, it modifies sections 42-7-58.5 and 42-7-102 to ensure that all simulcast and interstate combined wagering pools comply with federal regulations and to clarify the tax structure associated with these pools. The bill stipulates that the state will receive a portion of the total contributions made through these pools, with specific allocations to the special racing revolving fund and the South Dakota-bred racing fund.

Additionally, the bill introduces a new section that mandates that only licensed multi-jurisdictional totalizator hubs may operate online betting platforms for pari-mutuel wagering on horse and dog races. It outlines the tax obligations for both in-state and out-of-state operators, ensuring that they are subject to the same tax rates based on contributions made through the hub by individuals in South Dakota. This legislation aims to regulate and clarify the online wagering landscape while ensuring that the state and its racing funds benefit from these activities.

Statutes affected:
Introduced, 01/13/2026: 42-7-58.5, 42-7-102
Enrolled, 02/09/2026: 42-7-58.5, 42-7-102