This bill amends existing South Dakota law to establish licensure requirements for online pari-mutuel wagering pools related to horse and dog races. It specifies that only individuals licensed as multi-jurisdictional totalizator hubs may operate online betting platforms for these types of wagering. The bill also clarifies the tax implications for both in-state and out-of-state operators, ensuring that those with a physical presence in South Dakota are subject to the same tax rates as those without a physical presence, but with specific conditions regarding the tax rate applied to contributions made through the hub.

Key amendments include the requirement that simulcast wagering and interstate combined wagering pools must comply with updated federal regulations, specifically referencing 15 U.S.C. 3001 to 3007, effective January 1, 2026. Additionally, the bill modifies the distribution of tax revenues, ensuring that the state and specific racing funds receive designated percentages of contributions, while also establishing a new section that outlines the tax obligations for online wagering operators based on their physical presence in the state.

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