LARCHWOOD, IOWA (KELO) — In-person sports betting started today in Deadwood. Similar bets have made for two years about 405 miles east of Deadwood at a casino near Larchwood, Iowa.
Sports betting at Grand Falls Casino has netted the state $234,133 since sports betting started in August of 2019, according to Play IA.com .
State officials in South Dakota have said the state will make money with sports gambling. Based on Iowa’s results, that’s a safe bet.
South Dakota’s approach differs from Iowa and has more pieces.
The state will collected a 9% tax on gaming. One percent of that 9% will go directly to the state’s general fund, said Mike Rodman, the executive director of the Deadwood Gaming Association.
The state gaming commission will subtract expenses from the remaining 8% which will still leave revenue to be split between several entities.
Once the state gaming commission subtracts its expenses the remaining revenue is split as follows: 40% to the state tourism department, 10% to Lawrence County and 50% to the Deadwood Historical Preservation Commission with the city of Deadwood. Once the the Deadwood commission receives $6.8 million, the split formula changes to this for what remains: 70% goes to the state’s general fund, 10% to other municipalities in Lawrence County, 10% to school districts and 10% back to the Deadwood commission.
Unlike Iowa, South Dakota will not have online sports betting.
“South Dakota is a conservative state,” Rodman said. The state is using a “go slow approach” to sports gambling, he said.
The gambling industry identifies the handle as typically the amount of money bet on sports over a certain period of time.
Based on that definition, the majority of sports betting is in person at Grand Falls. The total handle is $33 million since 2019. The breakdown for online handle betting is $12.39 million and it’s $20.6 million for retail handle, or in-person betting. The two total the $33 million. The figures are from PlayIa.com.
In July of 2021, in-person sports betting still outpaced online betting by more than $50,000.
But, according to the gaming industry, online sports betting is a leader in the states with the most sports betting.
As of Sept. 1, New Jersey had nearly $17 million in sports betting, according to Legal Sports Report. About 80% of its bets are online bets.
The revenue from sports betting is only part of Grand Falls’ revenue.
The casino generated $7,177,811 in slot machine revenue, for example.
Deadwood and the state are using an Oxford Economics study to estimated the revenue generated by sports betting, Rodman said. The American Gaming Association shared the Oxford study which said that an estimated $6.1 million in direct revenue would be generated by sports betting. The study said another $22.1 million in overall gaming revenue would be generated, Rodman said.