South Dakota is the 17th largest state in the US, but home to only the 46th largest (5th smallest) population of 844,877 (est. 2013). Agriculture has always been a dominant factor in the state’s economy, which helps explain the incredibly low population density, but tourism plays a considerable role as well. Home to Mount Rushmore, several national parks and the Black Hills, not to mention the historic town of Deadwood where notorious gunslinger and gambler Wild Bill Hickok was gunned down in 1876, millions of visitors traverse the region’s historic landmarks every year. Unfortunately, gambling activities make up very little of the state’s income to due strict laws prohibiting the activity in most areas. As such, you won’t find any authorized online poker rooms operating in the state.
As with most states in the US, there are still plenty of online poker players in the Mount Rushmore State, and a substantial portion of them are all wondering the same thing. Is online poker illegal in South Dakota? In an attempt to answer to that question to the best of our knowledge, we will examine the state’s land-based industry and current laws.
Land-based Gambling in South Dakota
Gambling saloons and brothels were a way of life in this region centuries ago, primarily due to the Black Hills Gold Rush of the early 1900’s, which resulted in the establishment of Deadwood. Gamblers were known to frequent the town, including the infamous Bill Hickok, who is said to have been gunned down during a poker game in Deadwood. Despite gambling being deemed illegal, Deadwood remained a haven for such activities for decades. In the 1950’s, the state decided to put a stop to it, but it took 3 more decades to get the job done.
In 1987, the South Dakota state lottery sold its first ticket, followed by video lottery sales in 1989. The following year, the town of Deadwood requested the state allow them to offer gambling services once more, regulated by the state, in order to raise funds to refurbish the town after a devastating fire in 1987 that destroyed the historic Syndicate Building and surrounding structures. The request was granted, and hence forth, Deadwood, SD is the home of the only state regulated casino gaming. As part of the licensure, these casinos must maintain a rustic architecture that follows the historic nature of the town’s past.
In the early 1990’s, local tribes sued the state for the right to offer tribal gaming. The courts eventually ruled in favor of the tribes, resulting in the staggered launch of 9 Native American gambling facilities that are able to offer slots, blackjack and poker games (the same as Deadwood) at their discretion.
Deciphering the Laws of South Dakota as they relate to Online Poker
The follow text is taken from Chapter 22 of the South Dakota Codified Laws. A brief definition is supplied for each quotation.
| Section | Text | Meaning (in re online poker) |
| 22-25-1 Gambling Defined – Keeping gambling establishment-Letting building for gambling-Misdemeanor. | Any person who engages in gambling in any form with cards, dice, or other implements or devices of any kind wherein anything valuable is wagered upon the outcome, or who keeps any establishment, place, equipment, or apparatus for such gambling or any agents or employees for such purpose, or any person who knowingly lets any establishment, structure, place, equipment, or apparatus for such gambling is guilty of a Class 2 misdemeanor. | The element of chance is not defined, thus poker cannot be excluded as a gambling activity. Anyone convicted of gambling in South Dakota can be punished by up to 30 days in jail and/or up to $500 fine. |
| 22-25A-1. Bet or wager defined |
For the purposes of this chapter, the term, bet or wager, means to directly or indirectly take, receive, or accept money or any valuable thing with the understanding or agreement that the money or valuable thing will be paid or delivered to a person if the payment or delivery is contingent upon the result of a race, contest, or game or upon the happening of an event not known to be certain… | In this section, a bet or wager is clearly defined as any risk of value in which the outcome is not known to be certain. Therefore playing poker for real money is most certainly betting. |
| 22-25A-7. Internet betting by person engaged in gambling business prohibited. | Except as provided in § 22-25A-15, no person engaged in a gambling business may use the internet or an interactive computer service to bet or wager. | This law seems to state that a person engaged in a gambling business may not play online poker. It’s not clear whether this applies to players who only profit from personal gambling winnings, or those who profit in some other way, being personally engaged in the business itself, as an owner, promoter, etc. As you’ll find in the following definitions, the interpretation of this law is important as it denotes whether playing online poker is a misdemeanor or felony. |
| 22-25A-8. Establishment of internet gambling business prohibited | Except as provided in § 22-25A-15, no person may establish a location or site in this state from which to conduct a gambling business on or over the internet or an interactive computer service. | To operate an online poker service within the state of South Dakota is illegal. |
| 22-25A-9. Violation if gambling originates or terminates in state–Each bet a separate violation | A violation of § 22-25A-7 or 22-25A-8 occurs if the violation originates or terminates, or both, in this state. Each individual bet or wager offered in violation of § 22-25A-7 or from a location or site that violates § 22-25A-8 constitutes a separate violation. | To operate an online poker service from any location that accepts players physically located in South Dakota is illegal. |
| 22-25A-10. Violation a felony. | Any person who violates § 22-25A-7 or § 22-25A-8 is guilty of a felony as follows: (1) For a first offense, a Class 6 felony; (2) For a second or subsequent offense, a Class 5 felony |
If § 22-25A-7 applies to online poker players who only profit from personal gambling winnings, the penalty is a felony, punishable by up to 2 years in prison and/or $4,000 fine for the first offense, increased to as many as 5 years in prison and/or up to $10,000 fine for all subsequent offenses. Although it’s not perfectly clear, this penalty is most likely reserved for those profiting from the gambling business, not mere players. |
| 22-25A-15. Inapplicability of chapter to state lottery or commission on gaming | This chapter does not apply to the South Dakota Lottery and its licensees, who are engaged in conduct in furtherance of activity expressly authorized, licensed, and regulated… | Gambling in any form is not illegal if it is licensed and regulated by the South Dakota Lottery or South Dakota Commission on Gaming. Therefore any form of gambling (including online poker) that is not regulated by the state is, by default, illegal. |
Is Online Poker Illegal in South Dakota?
No. South Dakota took the initiative to explicitly outlaw online poker and other internet gambling activities in 2000, long before it became a widely popular activity. In general, the laws on the matter are quite clear, but the penalties are not. 22-25A-7 seems to be aimed at operators, but is confusing because it says “no person… may use the internet… to bet or wager”, and that’s it is a felony to do so. It’s not likely that the player would face a felony charge, the same as an operator, thus it should be concluded that it does not apply to mere players. However, that doesn’t change the fact that participating in any illegal gambling, which would include online poker, results in a Class 2 Misdemeanor charge for every single bet placed, which could become a very hefty penalty for even a casual player; an exorbitant one for a true grinder.
Is South Dakota working to legalize Online Poker?
No. South Dakota took immediate action to prohibit online poker and online casino gambling long ago, and there’s no indication that they will reverse their stance on the matter in the foreseeable future. There was a slight glimmer of hope right after the DOJ reevaluated the Wire Act, giving states the right to regulate online poker and casino games as they saw fit. A spokesperson for the governor said he was willing to discuss the matter of online gambling, but had no immediate plans on the issue.
That hope was ripped away in February of 2014 when the South Dakota Attorney General signed his name to a letter that was delivered to federal officials imploring that the Wire Act be returned to its previous definition, prohibiting all forms of internet gambling. As such, it’s incredibly unlikely that South Dakota will join the online poker movement anytime in the foreseeable future.
Online Poker Players from South Dakota
Due to the legal landscape of online poker in the area, it’s difficult to unearth the true identities of online poker players from South Dakota, but those we do know of are Ben “VanilaVick13” McCoy, Keith “IRobYou” Pietz, Kyle “CIA_Bodyguard” Kruse, Mike “TheIsh” Janish.
Land-Based Card Rooms in South Dakota
South Dakota is home to 17 state regulated casinos in Deadwood, SD, and 9 tribal casinos spread across the state. As such, we’ve divided the following list into two sections.
State Regulated Casinos in Deadwood, SD
Bourbon Street
Location: Deadwood, SD
Poker Room: No
Cadillac Jack’s Gaming Resort Celebrity Casinos
Location: Deadwood, SD
Poker Room: Yes
Comfort Inn at Gulches of Fun Casino
Location: Deadwood, SD
Poker Room: No
Deadwood Gulch Resort
Location: Deadwood, SD
Poker Room: No
First Gold Hotel & Gaming
Location: Deadwood, SD
Poker Room: No
Gold Dust Gaming & Entertainment Complex
Location: Deadwood, SD
Poker Room: Yes
Hickok’s Casino
Location: Deadwood, SD
Poker Room: No
Hickok’s Iron Horse Inn – Wooden Nickel Casino
Location: Deadwood, SD
Poker Room: No
Lucky 8 Gaming
Location: Deadwood, SD
Poker Room: No
Main Street Deadwood Gulch
Location: Deadwood, SD
Poker Room: No
Midnight Star, Ent
Location: Deadwood, SD
Poker Room: No
Mustang Sally’s
Location: Deadwood, SD
Poker Room: No
Silverado Gaming Establishment & Restaurant
Location: Deadwood, SD
Poker Room: Yes
The Utter Place / Saloon #10
Location: Deadwood, SD
Poker Room: Yes
Tin Lizzie Gaming (formerly Four Aces)
Location: Deadwood, SD
Poker Room: No
VFW
Location: Deadwood, SD
Poker Room: No
Wild West Winners Casino
Location: Deadwood, SD
Poker Room: No
Tribal Casinos in South Dakota
Dakota Sioux Casino
Location: Watertown, SD
Poker Room: Yes
Dakota Connection
Location: Sisseton, SD
Poker Room: No
Fort Randall Casino
Location: Wagner, SD
Poker Room: Yes
Royal River Casino
Location: Flandreau, SD
Poker Room: Yes
Lode Star Casino
Location: Fort Thompson, SD
Poker Room: Yes
Golden Buffalo Casino
Location: Lower Brule, SD
Poker Room: Yes
Rosebud Casino
Location: Mission, SD
Poker Room: Yes
Prairie Wind Casino
Location: Pine Ridge, SD
Poker Room: Yes
Grand River Casino
Location: Mobridge, SD
Poker Room: No