Authorize the operation of pari-mutuel historical horse racing machines, and to authorize a new tax.
Summary
HB 1203 would expand South Dakota’s Deadwood gaming law to expressly authorize pari-mutuel historical horse racing machines as a permitted form of gaming within the city limits of Deadwood. The bill updates multiple definitions in chapter 42-7B to incorporate historical horse race wagering into the state’s gaming framework, including references to gaming devices, gaming rules, and licensed establishments. It also clarifies that the South Dakota Commission on Gaming may regulate these machines and that licensed gaming establishments must obtain commission approval for rules governing historical horse race wagering.
The bill sets a cap of four pari-mutuel historical horse race machines per retail license and keeps the existing thirty-device limit for other gaming devices. It creates a new nine percent tax on the net winnings from historical horse race wagering and directs those revenues to a new distribution formula: 45 percent to the special racing revolving fund, 5 percent to the South Dakota-bred racing fund, and 50 percent through the existing Deadwood/Lawrence County distribution structure. The bill also preserves the current gaming tax structure for other forms of gaming, while carving historical horse race wagering out of the existing gaming tax and adding it to a separate tax and revenue allocation scheme.
Impact
If enacted, HB 1203 would amend chapter 42-7B of South Dakota law to add pari-mutuel historical horse race wagering as an authorized gaming activity in Deadwood and to establish a separate tax and revenue distribution system for that activity. It would affect licensed gaming establishments, retailers, route operators, the South Dakota Commission on Gaming, the City of Deadwood, Lawrence County, school districts in Lawrence County, and state racing-related funds. The bill would also modify statutory definitions and regulatory authority so the commission can oversee the new machines and related rules.
Sentiment
The available voting history suggests the bill was not advanced at that stage, as it was tabled on a 12-0 vote. With no committee transcript provided, there is no recorded debate to show direct support or opposition in the materials supplied. The vote outcome indicates that, at least in committee, members were not prepared to move the bill forward despite the absence of recorded dissent.
Contention
The main likely points of contention are the expansion of legalized gaming in Deadwood and the creation of a new tax on historical horse race wagering. Potential concerns include whether the machines should be authorized at all, how they fit within existing gaming limits, and how the new revenue should be divided among racing funds, the state general fund, Deadwood, Lawrence County, and schools. Because the bill specifically creates a separate tax and distribution formula for a new gaming product, stakeholders tied to racing, Deadwood gaming operators, local governments, and education funding could have differing views on the fiscal and policy effects.