South Dakota lawmakers have given final approval to House Bill 1058, which would grant the state Commission on Gaming the authority to regulate and tax online platforms where people wager on parimutuel horse and dog races. This move aims to support South Dakota’s live horse racing industry, particularly in Fort Pierre, the state’s only remaining site for live horse races with legal betting. The bill passed the Senate 29-5 and the House 58-10 and now awaits Governor Larry Rhoden’s decision. The legislation responds to the closure of the state’s only off-track simulcast betting hub in December and the sharp decline in simulcast wagering tax revenues, which had previously helped fund live racing.

Supporters, including local horse owners and industry representatives, argue that regulating online betting hubs—currently unregulated and untaxed—will help preserve rural legacies like horse racing and generate revenue to sustain the sport. Opponents express concerns about gambling but acknowledge the difficulty brick-and-mortar venues face competing with online platforms. Recent data show a significant drop in simulcast wagering tax revenue over six years, while state support for Fort Pierre races has fluctuated but remains substantial. Proponents emphasize that regulation, even if revenue gains are uncertain, is necessary to protect South Dakota’s horse racing tradition.