Changes to Existing Law

26.50.33 26.50.34 101st Legislative Session 1058 2026 South Dakota Legislature House Bill 1058 Introduced by: Representative Weisgram Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to require licensure for online pari-mutuel wagering pools for horse and dog 1 races, and clarify the application of tax therefor. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That § 42-7-58.5 be AMENDED: 4 42-7-58.5. In addition to all state laws and applicable rules of the commission, 5 simulcast wagering and interstate combined wagering pools shall be in compliance must 6 comply with the United States Code, Title 15, Section 3001, et seq., as in effect on 7 December 31, 1990 15 U.S.C §§ 3001 to 3007, inclusive (January 1, 2026). 8 Section 2. That § 42-7-102 be AMENDED: 9 42-7-102. Notwithstanding any other provision of this chapter, the commission 10 may authorize any licensee to participate in an interstate combined wagering pool with 11 one or more other racing jurisdictions. If a licensee participates in an interstate combined 12 wagering pool, the licensee may adopt the take-out of the host jurisdiction or facility. 13 The State of South Dakota shall receive receives one and one-half percent of the 14 total contributed in this state, and the special racing revolving fund and the South Dakota-15 bred Dakota-bred racing fund shall must each receive one and one-half percent of the total contributed 16 in this state. However, Subject to the provisions of section 3 of this Act, if the licensee 17 participating in the interstate combined wagering pool is a multi-jurisdictional totalizator 18 hub, the total portion to be received by the state shall be is one-fourth of one percent of 19 the total contributed through the hub, of which the special racing revolving fund shall 20 receive receives one-fifth of one percent of the total contributed through the hub and the 21 South Dakota-bred racing fund shall receive receives one-twentieth of one percent of the 22 total contributed through the hub. Any such interstate combined wagering pool may only 23 apply to horse and dog racing authorized by this chapter. 24 25 26.50.33 2 1058 Underscores indicate new language. Overstrikes indicate deleted language. Section 3. That a NEW SECTION be added to chapter 42-7: 1 26.50.34 2 1058 HB1058 ENROLLED Only a person licensed as a multi-jurisdictional totalizator hub in this state may 2 operate an online betting platform or electronic application to offer online pari-mutuel 3 wagering on a horse or dog race. 4 A person with a physical presence in this state operating an online betting platform 5 or electronic application to offer online pari-mutuel wagering on a horse or dog race is 6 subject to the tax imposed pursuant to § 42-7-102 on multi-jurisdictional totalizator hubs. 7 A person without a physical presence in this state operating an online betting 8 platform or electronic application to offer online pari-mutuel wagering on a horse or dog 9 race is subject to the tax imposed pursuant to § 42-7-102 on multi-jurisdictional 10 totalizator hubs, except that the tax rate applies to the total contributed through the hub 11 by individuals in this state on online pari-mutuel wagering pools for horse or dog races. 12 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