South Dakota’s lawmakers might seem somewhat ambivalent about allowing more forms of gambling in the state, but rest assured that when it comes to Daily Fantasy Sports (DFS), contestants are able to continue drafting without fear of breaking the law. Whether you’re thinking about starting your fantasy drafting career or you’re a seasoned pro, we recommend reading this article first to discover all you need to know about DFS betting in South Dakota.

Todd Winkler, Editor at online-gambling.com

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Todd Winkler has been an editor at online-gambling.com for 6 years. His focus is on guides and articles about poker games, blackjack, and DFS. With relatives in New Zealand, he is also well aware of the gambling industry in the country.

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Online Daily Fantasy Sports in South Dakota – Overview

Back in 2016, South Dakota’s Attorney General Marty Jackley offered a formal statement on the matter of DFS gambling. He acknowledged that while DFS activities are comparable to gambling, he was not yet certain that the games were based on skill or luck. Because of this uncertainty, he surmised that it would not be wise to seek felony indictments on both operators and players.

Since this statement, there hasn’t been much else happening in the direction of legalizing DFS through the legislature. However, like the rest of the country, there have been renewed talks about legalizing sports betting in the state. With much of the focus now on debating the pros and cons of a regulated sports betting market, Daily Fantasy Sports have been left to thrive without any government red tape restricting local fans from enjoying their favorite fantasy leagues.

Below, we’ve created a list of these popular leagues in South Dakota and how they are played.

Online Daily Fantasy NFL – Don’t Pass On This!

Football may be the nation’s favorite sport and the NFL its favorite league – and this same love felt all over the country certainly is held by South Dakota. The NFL Fantasy League is also one of the most popular DFS leagues played. In this contest, contestants are to draft teams of 9 NFL players into their lineups. Points are awarded to contestants based on the real-life performances of their chosen players and contests tend to last one week.

Online Daily Fantasy NHL – Choose Former Stampede Players

South Dakota may not have any teams in the National Hockey League, but they are noted for their strong Sioux Falls Stampede junior team that represents the state in the USHL – with 27 former players going on to NHL glory. When not enjoying their Stamped in the USHL, South Dakotans can play the NHL Fantasy League, where they are to draft teams of 9 players within a salary cap. Be warned though – players costs change based on the strength of their weekly performances.

Online Daily Fantasy MLB – A Home Run To The Bank

While they may not have any MLB teams of their own, this hasn’t stopped South Dakota’s residents from supporting a number of Major League Baseball teams based in nearby states. In MLB Fantasy, contestants draft a team of 10 players and pit them against each other’s teams week-to-week. Point scoring is similar to other fantasy leagues.

Online Daily Fantasy NBA – Slam Dunking To Victory

Despite South Dakota having no teams in the NBA or in any major professional league for that matter, there’s no denying that NBA Fantasy would be loved by South Dakota’s fans of the local Sioux Falls Skyforce, the two-time championship-winning NBA G League basketball team. In the NBA Fantasy league, contestants are to draft 8 players from at least two different NBA games. Scoring is also based on real-life gameplay statistics e.g. 1 point for every point scored, 2 points for a block.

College Fantasy Sport – The New Kids On The Block

With no teams in any major professional league, South Dakota’s residents tend to head to the stadiums of their universities to cheer on local athletic talent. For years, South Dakota wasn’t represented at all in the NCAA Division 1. Then, South Dakota State University (SDSU) and the University of South Dakota (USD) decided to bring their teams to the higher tier and they haven’t looked back since. Both the SDSU Jackrabbits and the USD Coyotes have since been building traction in the league as they modernize their stadiums and training facilities.

There are some states in the USA that have banned DFS betting on college games in the fear that they could negatively influence the results of real-life gameplay – these concerns have yet to be proven. Thankfully, South Dakota is not one of these states, and residents can enjoy drafting their favorite players from their at home or far away.

Timeline of Daily Fantasy Sports Legislation

For the good part of a century, South Dakota had a zero-tolerance approach to all forms of gambling, despite its prevalence in its early history. Then, in the 1980s, attitudes began to shift and slowly pave the way for more progressive legislation to be brought in regarding gambling. It’s this attitude that has allowed DFS to exist unhindered by any laws since it first appeared. Below, we’ve created a timeline of some of the most interesting and important years in South Dakota’s gambling history, leading up to today. For more information you can see our dedicated South Dakota gambling page.

Legal Daily Fantasy Betting Age in South Dakota

In South Dakota, DFS operators only allow players that are 18 years and older to play, which is the same for participation in the state lottery and pari-mutuel betting. Players must be 21 years old to gamble at casinos and KENO. If a player is caught gambling underage, it is considered a Class 1 misdemeanor and is punishable with no longer than 30 days in prison.

• DFS Betting Age
  Players must be over 18 years old to play on DFS Sites in South Dakota.
• Alcohol Age
  The legal drinking age in South Dakota is 21 years old.
• Weed Age
  Recreational smoking of cannabis is still illegal in South Dakota.

Is Daily Fantasy Betting Legal Outside of the State?

Daily Fantasy League betting is legal in most states in the USA, with only nine states that have either declared it illegal or blocked DFS operators from remaining active within state lines. Some of these states include Hawaii, Arizona and Idaho. While these states look to not be interested in changing their DFS laws soon, there are also a number of states that, like South Dakota, allow DFS to exist in a ‘legal gray zone’. This generally means that they tolerate DFS activities and won’t prosecute players for competing but are yet to make any formal statement on its legality. It remains to be seen how long these states will choose this option – with the downsides being potential millions of lost tax revenue every year.

The Best Fantasy Sports App in South Dakota

Do you prefer using your mobile phone to gamble rather than use a PC? Then you’re in luck because most major DFS websites have either created mobile apps or have built websites that are fully mobile optimized. This allows you to make drafts and bets while you’re on the go, without the hassle of booting up your PC. This is the most convenient way to play, so we suggest downloading the DraftKings app for DFS betting due to its ease of use and speed.

Taxes on Daily Fantasy Winnings: Legal Overview

Whatever amount that you win from gambling undergoes taxation according to the federal law, which means 25%. Furthermore, the state tax laws classify these wins as an income and tax them accordingly. In case you want more details, you can turn to the South Dakota Department of Revenue.

Upcoming Regulation Changes to Be Aware Of

Since South Dakota’s Attorney General commented on DFS in 2016, there has been little said or done to continue the legalization process. As is the way with the rest of the nation, most of the attention now seems to be on the legalization and regulation of sports betting in South Dakota. It appears, though, that the state may have a difficult time progressing.

In 2016, the Attorney General also commented on the Wire Act – a law that banned interstate sports betting. He believed that the law should be expanded to outlaw internet gambling too. This would have put the nail in the coffin for online sports betting once and for all. Then, in 2018, PASPA was repealed, and states have begun to legalize sports betting one by one. Although South Dakota recently introduced a bill seeking to allow voters to decide on whether sports betting should be legal, it was narrowly defeated.

It appears that the Attorney General’s view of online gambling is not singular in the state, and may take some time to win over. Despite that, laws across the nation are changing quickly so the same changes could happen in South Dakota.

Daily Fantasy Guides for Nearby States

• North Dakota
• Minnesota
• Nebraska
• Wyoming