HB 1058 South Dakota House · 2026 Regular Session

require licensure for online pari-mutuel wagering pools for horse and dog races, and clarify the application of tax therefor.

HB 1058 requires online betting platforms offering pari-mutuel wagering on horse or dog races to obtain a specific license from South Dakota. It clarifies that both in-state operators (with a physical presence) and out-of-state operators must pay a tax of 1.5% on South Dakota contributions, while multi-jurisdictional hubs pay 0.25% (with portions going to racing and breeding funds). The bill specifies that tax revenue will fund the state, a special racing revolving fund, and a South Dakota-bred racing fund. This applies only to online wagering for authorized horse and dog races, updating existing tax and licensing rules.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Feb 2026

Signed into Law

Feb 2026

Introduced Jan 21, 2026 Signed Feb 17, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Enrolled · 4 edits · Feb 9, 2026

MODERATE

This bill establishes a new legal framework requiring a state license for any entity operating online pari-mutuel wagering on horse or dog races in South Dakota. It clarifies that both in-state and out-of-state operators must pay specific taxes to the state, with the tax base differing based on whether the operator has a physical presence in the state. The bill also updates existing laws to ensure compliance with federal regulations and defines how the state, racing funds, and multi-jurisdictional hubs share revenue from interstate wagering pools.

Scope change

The bill expands the scope of state regulation to explicitly include online betting platforms, previously focusing on physical simulcast and interstate pools.

ELIGIBILITY

Created a new requirement that only a person licensed as a multi-jurisdictional totalizator hub may legally operate an online betting platform for horse or dog races in South Dakota.

FISCAL

Established a tax structure for online wagering where in-state operators pay a standard rate, while out-of-state operators pay a rate based only on wagers placed by individuals physically located in South Dakota.

REQUIREMENT

Updated existing statutes to mandate that all simulcast and interstate wagering pools must comply with specific federal regulations (15 U.S.C. §§ 3001 to 3007) effective January 1, 2026.

DEFINITION

Formally defined the tax obligations for entities without a physical presence in the state, clarifying that their tax liability is calculated based on in-state wagers rather than total global wagers.

Floor votes · Senate Feb 6, 2026 · House Jan 27, 2026

How they voted

29–5

Passed · 1 other

Total votes 35

Feb 6, 2026

D Democratic3

3 Yea

100% Yea

R Republican32

26 Yea 5 Nay 1

81% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 17, 2026

Signed into law

Signed by the Governor on 2026-02-17 H.J. 326

executive

Feb 10, 2026

Lower · Passed

Signed by the President S.J. 236

lower

Feb 9, 2026

Lower · Passed

Signed by the Speaker H.J. 267

lower

Feb 6, 2026

Lower · Passed

Senate Do Pass , Passed, YEAS 29, NAYS 5 S.J. 215

lower

Feb 5, 2026

Lower · Passed

Commerce and Energy Do Pass , Passed, YEAS 7, NAYS 2 S.J. 12

lower

Jan 29, 2026

Committee

Referred to Senate Commerce and Energy S.J. 144

lower

Jan 27, 2026

Lower · Passed

House of Representatives Do Pass , Passed, YEAS 56, NAYS 10 H.J. 155

lower

Jan 26, 2026

Lower · Passed

Commerce and Energy Do Pass , Passed, YEAS 11, NAYS 2 H.J. 8

lower

Jan 21, 2026

Introduced

First read in House and referred to House Commerce and Energy H.J. 104

lower

20 primary · 0 co-sponsors