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South Dakota lawmakers have advanced legislation aimed at providing new financial support for the state’s remaining horse racing operations, a move supporters say is necessary to keep live racing viable.
The House voted 56-10 to pass House Bill 1058, which would allow regulated online wagering on horse and dog racing. The bill now moves to the Senate for further consideration.
Supporters say the proposal addresses long-standing funding challenges facing horse racing in South Dakota, where live events have steadily declined over the years.
South Dakota’s last live horse racing hub: Fort Pierre
Horse racing in South Dakota is now concentrated in a single location. Fort Pierre hosts the state’s only live race meets, organized annually by the Verendrye Benevolent Association.
Those events have continued despite rising operational costs and declining betting activity. Organizers say traditional wagering no longer generates enough revenue to sustain racing at previous levels, creating uncertainty about the long-term future of the meets.
Lawmakers backing House Bill 1058 argue the decline reflects broader changes in how wagering occurs, rather than a lack of interest in horse racing itself.
Online pari-mutuel betting aims to modernize horse racing
House Bill 1058 would authorize the South Dakota Commission on Gaming to license and regulate online pari-mutuel wagering providers for horse and dog racing.
Pari-mutuel wagering pools bets together, with payouts determined by the total amount wagered on each outcome. The bill would allow that format to be offered online under state oversight.
The proposal does not authorize sports betting or online casinos in South Dakota. Its language is limited to wagering directly tied to racing events.
Capturing lost revenue from online wagers
Republican Rep. Mike Weisgram, the bill’s prime sponsor, framed the measure as a regulatory update rather than an expansion of gambling. He compared it to the state’s approach to online sales tax collection, arguing that South Dakota is simply applying existing gambling rules to a digital marketplace.
“This bill does not create new gambling,” Weisgram said on the House floor. “It allows existing pari-mutuel wagering to occur online.”
Weisgram told lawmakers that South Dakota residents already place online horse racing bets through platforms licensed in other states. Because state law does not clearly authorize or regulate that activity, those wagers generate no revenue for local racing operations or the state.
He said the bill would allow South Dakota to capture a portion of that activity instead of continuing to lose it to other jurisdictions.
Racing groups back online betting
Representatives of the Verendrye Benevolent Association testified that financial challenges continue to affect race planning in Fort Pierre.
“Our industry has been challenged for decades,” said Shane Kramme of the South Dakota Horsemen’s Association during committee testimony.
Kramme and other advocates told lawmakers that online gambling is the most practical tool available to help reverse the trend. They said it would allow fans, both in-state and potentially out-of-state, to place legal bets through licensed platforms without traveling to a physical track.
The South Dakota Commission on Gaming has approved race dates for October, but financial constraints could limit the event. Kramme said revenue from online wagering could help support race purses and operating costs, and without additional funding options, live racing in Fort Pierre could scale back further.
Opposition and oversight concerns
Not all lawmakers supported the bill. Family Voice Action registered “soft opposition,” citing broader concerns about gambling expansion. Rep. Tina Mulally also voted against the measure.
Supporters countered that a regulated system could provide stronger consumer protections than unregulated alternatives. Rep. Drew Peterson said transparency and oversight were key benefits of the proposal.
Those concerns were discussed during committee hearings and floor debate but did not prevent the bill from passing by a wide margin.
Next steps for South Dakota horse racing
The Senate will now take up the proposal. Its decision will determine whether South Dakota’s horse racing industry gains the digital tool supporters believe is critical to its future or continues under its current, strained model.
The debate in Pierre is being watched by other states where traditional horse racing competes for attention in an increasingly crowded entertainment landscape. South Dakota’s decision could signal whether historic racing industries can remain viable through legislative adaptation.
