South Dakota Daily Fantasy Sports

DFS Apps in South Dakota

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Because South Dakota does not regulate daily fantasy sports, the market is wide open and competitive. That benefits players because the most common ways fantasy sports brands compete for new users include DFS bonuses, ongoing promos, and contests with high payout potential.

The flip side is that an unregulated market lacks the customer protections present in regulated states. Unlike regulated states, South Dakota does not have a dedicated DFS regulator, a formal dispute resolution procedure, or a licensing process to separate the good operators from the bad.

As such, itโ€™s even more important for fans to choose DFS apps in South Dakota that are established, reputable, and licensed in other states. The following daily fantasy sports apps meet all three of those requirements and accept customers located in South Dakota:

Fantasy pick’em apps operate in South Dakota without restriction.

Prominent South Dakota DFS apps like PrizePicks and Underdog Fantasy let you predict whether two or more athletes will finish above or below their projected stat totals. For example, a typical fantasy pickโ€™em contest may ask users to predict whether:

  • A quarterback will throw for more or less than 243.5 yards
  • An NBA player will record more or less than 8.5 rebounds
  • A pro golfer will have more or less than 4.5 โ€œbirdies or betterโ€

The primary difference between prop bets (which are illegal outside of authorized sportsbooks in South Dakota) and pickโ€™em contests is that the latter require every โ€œslateโ€ to cover at least two athletes.

By requiring every slate to include two or more athletes, fantasy pick โ€˜em apps in South Dakota contend that they meet the UIGEAโ€™s definition of โ€œfantasy sports,โ€ which exempts them from classification as sports betting.

Gaming regulators in some states disagree with that assertion and have forced fantasy pick โ€˜em apps to either cease and desist entirely or to adjust their contest mechanics. That has not happened in South Dakota, and numerous fantasy pickโ€™em sports apps have operated openly for years without enforcement action or legal threats.

South Dakotaโ€™s laws do not specifically address daily fantasy sports. The current legal landscape in South Dakota is a product of (a) how the law treats games of skill and (b) a 2015 decision by the Attorney General not to pursue operators.

The most relevant official guidance came in 2015, when daily fantasy sports sites launched a massive advertising blitz that drew national scrutiny and enforcement actions in multiple states.

In a public statement, then-Attorney General Marty Jackley stated that free-to-play DFS contests are legal and that it had traditionally been the Attorney Generalโ€™s position that contests of skill are exempt from the stateโ€™s gambling prohibition.

The statement did not address paid daily fantasy sports contests, but it did lay the groundwork for DFS apps to operate in South Dakota under the legal theory that they rely on in most states: paid fantasy sports contests are games of skill, not illegal gambling.

Around the same time, the South Dakota Commission on Gaming held a meeting in which it stated that the commission had no legal authority to regulate fantasy sports.

Neither position has changed in the years since. The legislature has not passed a DFS law, and no Attorney General or court has revisited the question. As a result, the status quo remains in place to this day: daily fantasy sports are unregulated but tolerated in South Dakota.

State law does not explicitly address the legality of daily fantasy sports contests in South Dakota, but DFS is legal in practice. State law exempts contests of skill from its definition of illegal gambling, and DFS apps have run paid contests in South Dakota for years. In 2015, the Attorney General declined to pursue operators, and nothing has changed since.

In practice, yes. Fantasy pickโ€™em apps operate under the same legal assumptions as standard DFS sites in South Dakota.

Most DFS apps in South Dakota impose a minimum age of 18 to participate. South Dakota does not regulate DFS contests, so there is no โ€œofficialโ€ minimum age requirement.

Yes. South Dakota has no individual income tax, but federal law still treats DFS winnings as taxable income. See a qualified professional for DFS tax advice specific to your situation.