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CHAPTER 42-7B

LIMITED CARD GAMES, SLOT MACHINES, CRAPS, ROULETTE, AND KENO

42-7B-1      Limited card games, slot machines, craps, roulette, and keno authorized within city of Deadwood.
42-7B-2      Authority conditioned--Repeal.
42-7B-2.1      Public policy.
42-7B-3      Regulation by commission.
42-7B-4      Definition of terms.
42-7B-5      Disposition of proceeds.
42-7B-6      South Dakota Commission on Gaming created.
42-7B-7      Promulgation of rules--Enforcement of chapter.
42-7B-7.1      Commission may suspend gaming at its discretion.
42-7B-8      Regular and special meetings--Quorum--Cost of special meeting requested by person other than chair, two members, or Governor.
42-7B-8.1      Purposes for executive or closed meetings.
42-7B-9      Appointment and removal of executive secretary--Duties--Salary.
42-7B-9.1      Executive secretary's access to files and records.
42-7B-10      Compensation for commission members--Expenses paid.
42-7B-11      Powers of commission.
42-7B-12      Appeal of final action of commission--Denial of license not appealable.
42-7B-13      Powers of attorney general pursuant to chapter.
42-7B-14      Maximum amount of bets.
42-7B-15      Approval of rules for certain games.
42-7B-16      Maximum number of gaming devices per license.
42-7B-16.1      Repealed.
42-7B-16.2 to 42-7B-16.4. Not.
42-7B-17      Responsibilities of operator.
42-7B-18      Identification of retail floor plan--Approval--License granted only to retailer--Location of devices.
42-7B-19      Approval or disapproval of license.
42-7B-19.1      Denial of application--Reapplication.
42-7B-19.2      Investigation of license applicant--Failure to allow.
42-7B-20      Holding license by certain persons prohibited.
42-7B-21      Application fee and form.
42-7B-22      Licenses--Types--Violation as felony.
42-7B-22.1      Licensing of key employee may be required--Grounds--Time limit for response from employee--Written request to review status as key employee.
42-7B-23      Annual license stamp fee--Transfer of license stamp.
42-7B-24      License revocable--Not transferable.
42-7B-25      Qualifications for license as operator, gaming property owner, or retailer.
42-7B-25.1      Internal control procedure for particular licensee may be established.
42-7B-26      Repealed.
42-7B-27      Employee support license--Qualifications.
42-7B-28      Gaming tax.
42-7B-28.1      Additional tax on gaming proceeds.
42-7B-28.2      Calculation of adjusted gross proceeds.
42-7B-29      Return and remittance--Forms furnished by secretary.
42-7B-30      Violations of taxation provisions punishable as felony or misdemeanor.


42-7B-31      Failure to file--Penalties.
42-7B-32      Suspension or revocation of license--Grounds--Reprimand or monetary penalty.
42-7B-33      Person involved as manufacturer, distributor, operator, retailer, gaming property owner, key employee, or support licensee--Qualifications.
42-7B-34      Repealed.
42-7B-35      Age of participants--Violation as misdemeanor.
42-7B-36      Minimum payback value of credit.
42-7B-37      Exemption from federal law.
42-7B-38      Shipments of devices and machines deemed legal.
42-7B-39      Shipping records required to be maintained--Report by recipient--Transport out of state--Violation as felony.
42-7B-39.1      Shipping records delivered to commission.
42-7B-39.2      Destruction of seized slot machine.
42-7B-40      Licensed employee twenty-one years or older required on premises.
42-7B-41      False statement or failure to keep books and records--Violations as felony.
42-7B-42      Unlawful acts by participants--Felony.
42-7B-42.1      Repealed.
42-7B-43      Slot machines--Security and audit specifications.
42-7B-44      Expenditure of public funds for purchase of certain machines--Proceeds--Placement.
42-7B-45      Extension of credit prohibited--Violation as felony.
42-7B-46      Historic restoration and preservation fund created.
42-7B-47      Limited card games and slot machines exempt from certain other statutes.
42-7B-48      South Dakota Gaming Commission fund established--Disbursements.
42-7B-48.1      Distribution of funds following payment of net municipal proceeds to City of Deadwood.
42-7B-48.2      General state aid to school districts reduced by payments from Gaming Commission fund.
42-7B-48.3      Gaming addiction treatment and counseling program grants from Gaming Commission fund.
42-7B-49      Acceptance and expenditure of funds by commission.
42-7B-50      Payment of expenditures.
42-7B-51      Repealed.
42-7B-52      Taxes and fees to support identified entities.
42-7B-53      Statement of public policy--Equipment not subject to certain exclusive agreements.
42-7B-54      Anticipatory revenue bonds.
42-7B-55      Certain gambling statutes not applicable.
42-7B-56      Appointment of commission employee as law enforcement officer.
42-7B-57      Commission use of unmarked vehicles.
42-7B-58      Records--Confidentiality--Exception for official purposes and tax purposes.
42-7B-59      Certain communications between commission and secretary privileged and confidential.
42-7B-60      Exclusion or ejection of certain persons from gaming establishments necessary.
42-7B-61      List of persons to be excluded--Entrance in violation as misdemeanor--Penalty for failure to exclude or eject persons on list.
42-7B-62      Notice to excluded person.
42-7B-63      Repealed.
42-7B-64      "Gaming contract" defined.
42-7B-65      Copy of any process or pleading to the commission.
42-7B-66      Copies of all proposed gaming contracts to the executive secretary.
42-7B-67      Notification by licensee of involvement in gaming operations out of state or on any Indian reservation.
42-7B-68      Fees for publication and reports.
42-7B-69      Manufacture of gaming devices or equipment for exportation.
42-7B-70      Provision applicable to manufacture of gaming devices and equipment for exportation.
42-7B-71      Provision of interlink communications service to slot machines--Not applicable in Deadwood.
42-7B-72      Lien for tax, penalty or interest due--Notice of tax lien filed with register of deeds--Priority.
42-7B-73      Distress warrant--Seizure and sale of personal property.
42-7B-74      Personal liability of corporate officers, member-managers or managers of limited liability companies, or partners--Bond or certificate of deposit.
42-7B-75      Cancellation or revocation of voluntarily surrendered license.


     42-7B-1.   Limited card games, slot machines, craps, roulette, and keno authorized within city of Deadwood. Limited card games, slot machines, craps, roulette, and keno are hereby authorized, and may be operated and maintained, within the city limits of the city of Deadwood, South Dakota, subject to the provisions of this chapter.

Source: SL 1989, ch 374, § 1; SL 2015, ch 218, § 1.


     42-7B-2.   Authority conditioned--Repeal. No gaming is allowed under the authority of this chapter until the question to be submitted pursuant to § 42-7B-1 is approved by the voters of Deadwood, and until this chapter is implemented through the grant of applicable licenses by the South Dakota Commission on Gaming. If the voters of the City of Deadwood fail to approve the question to be submitted pursuant to § 42-7B-1 by July 1, 1989, the provisions of this chapter are repealed as of that date.

Source: SL 1989, ch 374, § 1A.


     42-7B-2.1.   Public policy. The Legislature hereby finds, and declares to be the public policy of this state, that:
             (1)      The success of gaming is dependent upon public confidence and trust that licensed gaming is conducted honestly and competitively, that the rights of the creditors of licensees are protected and that gaming is free from criminal and corruptive elements;
             (2)      Public confidence and trust can only be maintained by strict regulation of all persons, locations, practices, associations, and activities related to the operation of licensed gaming establishments and the manufacture or distribution of gaming devices and equipment;
             (3)      All establishments where gaming is conducted and where gambling devices are operated, and manufacturers, sellers, and distributors of certain gambling devices and equipment must therefore be licensed, controlled, and assisted to protect the public health, safety, morals, good order, and the general welfare of the inhabitants of the state, to foster the stability and success of gaming and to preserve the economy and policies of free competition of the State of South Dakota;
             (4)      No applicant for a license or other affirmative commission approval has any right to a license or to the granting of the approval sought. Any license issued or other commission approval granted pursuant to the provisions of this chapter is a revocable privilege, and no holder acquires any vested right therein or thereunder.

Source: SL 1990, ch 343, § 23; SL 1993, ch 320, § 1 rejected by referendum held September 14, 1993.


     42-7B-3.   Regulation by commission. Gaming within the city limits of the city of Deadwood shall be regulated by the South Dakota Commission on Gaming.

Source: SL 1989, ch 374, § 2; SL 1993, ch 320, § 2 rejected by referendum held September 14, 1993; SL 2015, ch 218, § 2.


     42-7B-4.   Definition of terms. Terms used in this chapter mean:
             (1)      "Adjusted gross proceeds," except in the case of the games of poker, gross proceeds less cash prizes. In games of poker, the term means any sums wagered in a poker hand which may be retained by the licensee as compensation which must be consistent with the minimum and maximum amount established by the South Dakota Commission on Gaming;
             (1A)      "Associated equipment," any equipment or any mechanical, electromechanical, or electronic device, component, or machine, or any combination thereof, that is used remotely or directly in connection with gaming or any gaming device;
             (1B)      "Associated equipment manufacturer or distributor," any person who designs, assembles, fabricates, produces, constructs, sells, leases, distributes, or otherwise prepares a product or component of any associated equipment;
             (2)      "Bet," an amount placed as a wager in a game of chance;
             (3)      "Blackjack," a card game played by a maximum of seven players in which each player bets against the dealer. The object is to draw cards whose value will equal or approach twenty-one without exceeding that amount and win bets, payable by the dealer, if the player holds cards more valuable than the dealer's cards;
             (3A)      "Cheating," any attempt to alter the elements of chance, method of selection, or criteria that determines the:
             (a)      Result of a game;
             (b)      Amount or frequency of payment in a game;
             (c)      Value of a wagering instrument; or
             (d)      Value of a wagering credit;
             (3B)      "Cheating device," any computerized, electronic, electrical, or mechanical device, or any software or hardware, or any combination thereof, that is designed, constructed, altered, or programmed to obtain an advantage at playing any game in a licensed gaming establishment or any game that is offered by a licensee including a device that:
             (a)      Projects the outcome of the game;
             (b)      Keeps track of cards played or cards prepared for play in the game;
             (c)      Tracks play and analyzes the probability of the occurrence of an event relating to the game; or
             (d)      Tracks play and analyzes the strategy for playing or betting to be used in the game except as may be made available as part of an approved game or otherwise permitted by the commission;
             (4)      "City limits," the boundaries of the city of Deadwood as they existed on January 1, 1989;
             (5)      "Commission," the South Dakota Commission on Gaming;
             (5A)      "Craps," a game in which the players place bets on the outcome of the roll or series of rolls of a pair of dice;
             (5B)      "Fraudulent scheme," a dishonest or deceptive plan or arrangement used or intended to be used to play a game or slot machine that gives any person an advantage when playing a game or slot machine;
             (5C)      "Fraudulent technique," a dishonest or deceptive procedure or method of playing a game or slot machine that gives any person an advantage when playing a game or slot machine;
             (6)      "Gaming," limited card games, slot machines, craps, roulette, and keno as allowed and regulated by this chapter;
             (6A)      "Gaming device," a poker table, a blackjack table, a slot machine, a craps table, a roulette table, or a keno number selection device;
             (7)      "Gaming employee," any person twenty-one years of age or older employed by an operator or retailer hosting gaming to work directly with the gaming portion of that business and who must hold a support license;
             (8)      "Gaming equipment," any equipment used in gaming that is allowed by this chapter and which requires licensing;
             (9)      "Gaming license," any license issued by the commission pursuant to this chapter which authorizes any person to engage in gaming within the city of Deadwood;
             (9A)      "Gaming property owner," any person other than a licensed retailer who owns real property where licensed gaming is conducted within the city of Deadwood. The term, gaming property owner, does not include any person who owned real property where licensed gaming was conducted within the city of Deadwood prior to January 1, 2010;
             (10)      "Historic restoration and preservation," the restoration and preservation of the city of Deadwood to maintain its historical background, cultural heritage, and necessary supporting infrastructures;
             (10A)      "Keno," a game in which players place bets by marking their selections on a blank ticket form with eighty numbered selection boxes and the outcome is determined by a number selection device;
             (10B)      "Key employee," any executive, employee, or agent of a gaming licensee having the power to exercise a significant influence over decisions concerning any part of the operation of a gaming licensee;
             (11)      "Licensed gaming establishment," any premises licensed pursuant to this chapter where gaming is conducted;
             (12)      "Licensee," any person licensed under this chapter;
             (13)      "Licensing authority," the South Dakota Commission on Gaming;
             (14)      "Limited card games and slot machines," any card games including poker and blackjack and slot machines authorized by this chapter and regulated by the commission;
             (15)      "Net municipal proceeds," the amount remitted to the city of Deadwood by the South Dakota Commission on Gaming;
             (16)      "Operator," any person who places poker tables, blackjack tables, slot machines, craps tables, roulette tables, or keno number selection devices in the person's own business premises;
             (17)      "Person," includes individuals, partnerships, limited liability companies, associations, and corporations;
             (18)      "Poker," a card game played by players who are dealt cards by a nonplayer dealer. The object of the game is for each player to bet the superiority of the player's own hand and win the other players' bets by either making a bet no other player is willing to match or proving to hold the most valuable cards after all the betting is over. Poker includes draw, stud, low ball, or any combination thereof;
             (19)      "Retailer," any licensee who maintains gaming at the licensee's place of business within the city of Deadwood for use and operation by the public;
             (20)      "Retail space," the area where the retailer's business is principally conducted;
             (20A)      "Roulette," a game in which players place bets on a single number or a range of numbers or the colors red or black or whether the number is odd or even or a combination thereof and the winning numbers and color are determined by a ball which is spun on a wheel;
             (20B)      "Route operator," any person who, individually or jointly pursuant to an agreement whereby consideration is paid for the right to place poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device, engages in the business of placing and operating poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device within the city of Deadwood;
             (21)      "Slot machines," any mechanical, electrical, or other device, contrivance, or machine which, upon insertion of a coin, token or similar object, or upon payment of any consideration whatsoever, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash premiums, merchandise, tokens, redeemable game credits or anything of value other than unredeemable free games whether the payoff is made automatically from the machines or in any other manner;
             (22)      "Slot machine manufacturer or distributor," any person who designs, assembles, fabricates, produces, constructs, sells, leases, distributes, or who otherwise prepares a product or a component part of a slot machine, other than tables or cabinetry;
             (23)      "Suitability" or "suitable," in relation to a person is the ability to be licensed by the commission and as to acts or practices, are lawful acts or practices;
             (24)      "Unsuitability" or "unsuitable," in relation to a person is the inability to be licensed by the commission because of prior acts, associations, or financial condition, and as to acts or practices, are those that would violate the statutes or rules or would be contrary to the declared legislative purpose of this chapter.

Source: SL 1989, ch 374, § 3; SL 1990, ch 343, § 11; SL 1993, ch 320, § 4 rejected by referendum held September 14, 1993; SL 1993, ch 321, § 1; SL 1994, ch 351, § 100; SL 1995, ch 245, § 1; SL 1997, ch 243, §§ 1, 2; SL 2010, ch 212, § 1; SL 2015, ch 218, § 3; SL 2016, ch 212, § 1; SL 2018, ch 256, § 1; SL 2019, ch 192, §§ 1, 2.


     42-7B-5.   Disposition of proceeds. The entire net municipal proceeds of limited card games and slot machines shall be devoted to the historic restoration and preservation of the City of Deadwood as provided in this chapter. The term, historic restoration and preservation, shall be interpreted liberally in scope and effect.

Source: SL 1989, ch 374, § 4.


     42-7B-6.   South Dakota Commission on Gaming created. There is hereby created the South Dakota Commission on Gaming. The commission is attached to the Department of Revenue for reporting purposes only. The commission shall consist of five citizens of South Dakota, all of whom shall be appointed by the Governor of the State of South Dakota. The commission members may not all be members of the same political party. No member may be a license holder under this chapter nor a resident of Lawrence county. The initial members to be appointed shall draw lots to determine who will hold the two three-year terms, the two two-year terms and the one one-year term. Thereafter, each member shall serve terms of three years. No person may serve more than two consecutive full terms.

Source: SL 1989, ch 374, § 5; SL 2003, ch 272 (Ex. Ord. 03-1), § 28; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


     42-7B-7.   Promulgation of rules--Enforcement of chapter. The commission may promulgate rules, pursuant to chapter 1-26, for the orderly transaction and conduct of its business and the substantive rules that it may determine proper concerning the issuance, revocation, and suspension of gaming licensees, the division of limited card games, slot machines, craps, roulette, or keno that may be placed in any building or retail business, conduct, and operation of limited card games, slot machines, craps, roulette, or keno, variations of limited card games, craps or roulette, and any other things necessary to carry out the purposes of this chapter. The commission may also promulgate rules necessary to administer complaints which may be received from the public and conduct such other investigations and inspections into the conduct of the games and the licensees and the maintenance of the equipment as the commission deems necessary and proper. License issuance, suspension, and revocation are contested cases within the meaning of chapter 1-26. The commission's rules may provide procedures for summary suspension of any license issued under this chapter and shall provide for subsequent contested case hearings before suspensions become final or a license is revoked. The commission may apply for injunctive or declaratory relief to enforce the provisions of this chapter and any rules promulgated thereunder. Action by the commission may not limit the authority of the state's attorney or attorney general from enforcing criminal actions.

Source: SL 1989, ch 374, § 6; SL 2015, ch 218, § 4; SL 2016, ch 212, § 2.


     42-7B-7.1.   Commission may suspend gaming at its discretion. The commission may suspend gaming after a disaster such as flood, fire, earthquake or in the event of war or national emergency, for such period of time, as in its discretion, it deems appropriate.

Source: SL 1990, ch 343, § 30.


     42-7B-8.   Regular and special meetings--Quorum--Cost of special meeting requested by person other than chair, two members, or Governor. The commission may hold regular and special meetings at such times and places as it may deem convenient, but at least one regular meeting shall be held quarterly. A majority of the appointed members constitutes a quorum of the commission, and a special meeting may be called by the chair, by any two members, or the Governor. If a special meeting is called pursuant to the request of any other person, the actual costs of the special meeting including personnel costs incurred in making arrangements for the special meeting, preparation and mailing of notices of the special meeting, compensation and allowable expense reimbursement for commission members as established by § 42-7B-10, costs of the telecommunications systems, and rental of meeting space used for the special meeting, or a charge of one thousand dollars, whichever is greater, shall be made and assessed against the person who requested the special meeting.

Source: SL 1989, ch 374, § 7; SL 2009, ch 216, § 1.


     42-7B-8.1.   Purposes for executive or closed meetings. In addition to the provisions of § 1-25-2, the commission may hold executive or closed meetings for any of the following purposes:
             (1)      Considering applications for licensing when discussing the background investigations or personal information;
             (2)      Meeting with gaming officials of other jurisdictions, the attorney general, the state's attorney of Lawrence County or law enforcement officials relating to possible criminal violations;
             (3)      Consulting with the executive secretary, employees, and agents of the commission concerning possible criminal violations;
             (4)      Deliberations after hearing evidence on an informal consultation or a contested case necessary to reach a decision; and
             (5)      Discussing business strategies, marketing, or pricing strategies of a licensee or an applicant for a license if public discussion may be harmful to the competitive position of the licensee or applicant for license or discussions with a licensee or an applicant for a license for the purposes of overseeing and defining gaming contracts pursuant to subdivision § 42-7B-11(1).

Source: SL 1990, ch 343, § 6.


     42-7B-9.   Appointment and removal of executive secretary--Duties--Salary. The commission shall appoint, and may remove, an executive secretary who shall serve at the pleasure of the commission and who shall be responsible for the conduct of the commission's administrative matters and who shall devote full time and attention to the business of his office and may not pursue any other business or occupation. The commission shall set the annual salary of the executive secretary. The executive secretary may employ the persons that are necessary to operate the South Dakota Commission on Gaming.

Source: SL 1989, ch 374, § 8.


     42-7B-9.1.   Executive secretary's access to files and records. The executive secretary may have access both physically and electronically to all files and records required to be maintained under chapters 23-5 and 23-6 and may contribute to those records.

Source: SL 1990, ch 343, § 2.


     42-7B-10.   Compensation for commission members--Expenses paid. The members of the South Dakota Gaming Commission shall be paid mileage at the same rate as allowed for state employees. The commission shall receive per diem compensation and allowable expense reimbursement in an amount set pursuant to § 4-7-10.4 for all time actually spent while attending commission meetings. However, no per diem may be paid to commission members who are state employees. The per diem shall be paid by vouchers duly verified and approved by the executive secretary of the commission.

Source: SL 1989, ch 374, § 8A.


     42-7B-11.   Powers of commission. The commission may promulgate rules pursuant to chapter 1-26 to enable the commission to:
             (1)      Issue licenses, oversee, and define the gaming contracts of the licensees. Any license issued pursuant to this chapter is conditioned upon a specific waiver of all state and federal constitutional or statutory rights of privacy regarding gaming equipment, the licensed premises, all books, papers, computers, and information storage devices of any kind wherever located;
             (2)      Inspect and examine without notice all premises where gaming is conducted or gaming devices or equipment are located, sold, distributed, or stored;
             (3)      Seize and remove without notice or hearing from the premises and impound any gaming equipment or supplies for the purpose of examination and inspection;
             (4)      At any time day or night, inspect, examine, and photocopy or remove and impound all papers, books, and records of applicants and licensees and require verification of income, and all matters affecting the enforcement of the provisions of this chapter;
             (5)      Contract for such legal counsel to advise it as it may choose;
             (6)      Suspend for cause any gaming license;
             (7)      Require any applicant for a license as an operator or a retailer to disclose any pecuniary interest in the applicant by any person;
             (8)      Carry out such duties as may be imposed upon the state as a result of a compact entered into under the authority of the federal Indian Gaming Regulatory Act, provided the cost of performance of such duties is adequately funded by payments made available to the commission under the compact;
             (9)      Permit the executive secretary to issue or deny support licenses;
             (10)      Grant a license with special conditions or a license for a limited period, or both;
             (11)      Establish a procedure for establishing the suitability or unsuitability of persons and acts or practices;
             (12)      Regulate the manufacture of gaming devices and equipment for exportation outside this state;
             (13)      Establish procedures and regulations relating to corporations, partnerships, limited liability companies, affiliated companies and affiliates including the issuance, revocation, and suspension of licenses, and procedures generally to regulate gaming activities;
             (14)      Permit the executive secretary to enter into contracts and memorandums of understanding with regulatory agencies of other states and countries for the purpose of conducting background investigations of applicants;
             (15)      Permit the executive secretary to approve the transfer of a license stamp between licensed operators;
             (16)      Permit the executive secretary to renew licenses issued by the commission, to approve additional retail licenses to a person who holds at least one retail license in good standing, and to approve the assignment of the locations of retail licenses in good standing, all subject to the approval of the commission at the commission's next regular meeting.

Source: SL 1989, ch 374, § 9; SL 1990, ch 343, § 12; SL 1993, ch 321, § 16; SL 1995, ch 245, § 2; SL 1997, ch 244, § 1; SL 2012, ch 205, § 1.


     42-7B-12.   Appeal of final action of commission--Denial of license not appealable. Any person aggrieved by a final action of the commission may appeal the final action to the circuit court in accordance with the provisions of chapter 1-26, however any denial of an application for a license under § 42-7B-19 is not appealable.

Source: SL 1989, ch 374, § 10; SL 1990, ch 343, § 13; SL 2018, ch 256, § 4.


     42-7B-13.   Powers of attorney general pursuant to chapter. The attorney general may exercise any authority of inspection and examination allowed in this chapter and may apply to the circuit court for enforcement of any provision of this chapter or rule promulgated pursuant to this chapter.

Source: SL 1989, ch 374, § 11.


     42-7B-14.   Maximum amount of bets. The maximum amount of an initial bet or subsequent bet on all games subject to this chapter is one thousand dollars.

Source: SL 1989, ch 374, § 12; SL 1993, ch 320, §§ 5A, 5B, 5C rejected by referendum Sept. 14, 1993; Initiated Measure No. 1, approved Nov. 7, 2000, eff. Nov. 16, 2000; SL 2012, ch 206, § 1.


     42-7B-15.   Approval of rules for certain games. Specific rules for blackjack, poker, craps, roulette, and keno shall be approved by the commission and clearly posted within plain view of any applicable gaming table or area in which keno is offered for play.

Source: SL 1989, ch 374, § 13; SL 2015, ch 218, § 5.


     42-7B-16.   Maximum number of gaming devices per license. A full complement of gaming devices may not exceed thirty per retail license.

Source: SL 1989, ch 374, § 14; SL 1990, ch 343, § 14; SL 1993, ch 321, §§ 10C, 10F; SL 2015, ch 218, § 6.


     42-7B-16.1.   Repealed by special referendum election held September 14, 1993


     42-7B-16.2 to 42-7B-16.4.   Not implemented


     42-7B-17.   Responsibilities of operator. Each operator is responsible to provide audit and security measures relating to gaming devices, as prescribed by this chapter and the commission. The operator shall insure gaming device specifications comply with those provisions set forth in this chapter and the rules of the commission.

Source: SL 1989, ch 374, § 15; SL 2015, ch 218, § 7.


     42-7B-18.   Identification of retail floor plan--Approval--License granted only to retailer--Location of devices. The retail space of a licensee shall be identified by a physical layout within a building, called the retail floor plan. The retail floor plan showing the location of each gaming device shall be submitted to the commission at the time of application, and is subject to prior approval by the Deadwood City Commission. Approval is subject to gaming rules and those rules pertaining to public health, safety, good order and general welfare of the City of Deadwood. The retail gaming license may only be granted to the retailer. All gaming devices shall be located within the retail space of the business. The number of gaming devices may not exceed thirty per building.

Source: SL 1989, ch 374, § 16; SL 1990, ch 343, § 15; SL 1993, ch 320, § 7 rejected by referendum held September 14, 1993.


     42-7B-19.   Approval or disapproval of license. The commission may approve or disapprove any application for license, depending upon whether it deems the applicant a suitable person to hold the license and whether it considers the proposed location suitable. An applicant for any license under this chapter has the burden of proving the applicant's qualifications, by clear and convincing evidence, to the satisfaction of the commission, and is required to submit to such investigation regarding the applicant's past conduct as may be required by the commission.

Source: SL 1989, ch 374, § 17; SL 1993, ch 321, § 3.


     42-7B-19.1.   Denial of application--Reapplication. Any applicant for a license who has had his application denied by the commission may not reapply until at least one year has elapsed from the date of the denial. Any person who has been denied a license for a second time may not reapply until at least three years have passed since the date of the second denial.

Source: SL 1990, ch 343, § 7.


     42-7B-19.2.   Investigation of license applicant--Failure to allow. In order to assist in determining the applicant's suitability pursuant to § 42-7B-19, the applicant shall be fingerprinted and such fingerprints shall be forwarded to the Federal Bureau of Investigation identification division for a national criminal records check. By signing and filing an application for a license, which is hereby made subject to the perjury laws of this state, the applicant authorizes the commission to obtain information from any source, public or private, in this or any other country regarding the background or conduct of the applicant or any of its stockholders, lenders, holders of evidence of indebtedness, underwriters, executives, officers, directors, partners, agents, or employees. The applicant's failure to allow investigation into his background or to disclose all information as requested by the commission is grounds for denial of the license.

Source: SL 1993, ch 321, § 4.


     42-7B-20.   Holding license by certain persons prohibited. No officer, agent, or employee of the commission may hold a license under this chapter. No officer, agent, or employee of the law enforcement departments of Lawrence County, the City of Deadwood, or the State of South Dakota may hold a license under this chapter. This prohibition applies to the commission and all of its employees and all law enforcement officials and officers. No licensee may employ any person in any capacity directly related to the licensee's gaming activities while that person is in the employment of a law enforcement agency or the commission.

Source: SL 1989, ch 374, § 18.


     42-7B-21.   Application fee and form. The commission may establish an application fee which includes the cost of investigation and administration and is nonrefundable. The amount of the application fee may vary with the type of license or game for which application is made and with the type of applicant. The application form promulgated by the commission shall include a waiver of any right of confidentiality and allow access to law enforcement records of this or any other state, the government of any foreign country, or any Indian tribe. The waiver of confidentiality extends to any financial or personnel record wherever maintained.

Source: SL 1989, ch 374, § 19; SL 2015, ch 218, § 8.


     42-7B-22.   Licenses--Types--Violation as felony. The commission may issue the following types of licenses which are required to conduct gaming under this chapter:
             (1)      Slot machine manufacturer or distributor license. The license fee is one thousand dollars and thereafter an annual fee renewable July first of each year in the sum of two hundred fifty dollars. A slot machine manufacturer or distributor may not be licensed as a route operator, operator, or retailer;
             (2)      Operator license. The license fee is one thousand dollars and thereafter an annual fee renewable July first of each year of two hundred dollars;
             (3)      Retail license. The license fee is two hundred fifty dollars and thereafter an annual fee renewable July first of each year of one hundred dollars;
             (4)      Support license. The license fee is fifty dollars and thereafter an annual fee renewable January first of each year of twenty-five dollars. This license is required by all persons seeking employment in the field of gaming;
             (5)      Key employee license. The license fee is one hundred fifty dollars and thereafter an annual fee renewable January first of each year of seventy-five dollars;
             (6)      Route operator license. The license fee is one thousand dollars and thereafter an annual fee renewable July first of each year of two hundred dollars. Each route operator shall also hold a valid operator license;
             (7)      Gaming property owner license. The license fee is two hundred fifty dollars and thereafter an annual fee renewable July first of each year of one hundred dollars; and
             (8)      Associated equipment manufacturer or distributor license. The license fee is five hundred dollars and thereafter an annual fee renewable July first of each year of two hundred fifty dollars.
     Conducting gaming without the appropriate license is a Class 6 felony.

Source: SL 1989, ch 374, § 20; SL 1990, ch 343, § 16; SL 1993, ch 320, § 8 rejected by referendum held September 14, 1993; SL 1995, ch 245, § 6; SL 1996, ch 257, § 1; SL 2010, ch 212, § 2; SL 2018, ch 257, § 1.


     42-7B-22.1.   Licensing of key employee may be required--Grounds--Time limit for response from employee--Written request to review status as key employee. If it is the judgment of the commission that the public interest will be served by requiring a key employee to be licensed, the commission shall serve notice of the determination upon the licensee who employs the key employee. The commission is not restricted by the title of the job performed by the key employee but may consider the functions and responsibility of the key employee in making its decision. Grounds for requiring licensing of a key employee include:
             (1)      Whether the key employee is new to the gaming industry, to the particular gaming establishment, the position, or the level of influence or responsibility which he has, and whether the commission has insufficient or outdated information concerning his character, background, reputation, or association; or
             (2)      Whether information has been received by the commission or the executive secretary which, if true, would constitute grounds for a finding of unsuitability.
     The licensee shall, within thirty days following receipt of the notice of the commission's determination, present the application for licensing of the key employee to the commission or provide documentary evidence that the key employee is no longer employed by the licensee. Failure of the licensee to respond as required by this section is grounds for disciplinary action.
     A person subject to application for licensing as a key employee as required by this section may request the commission, in writing, to review its determination of that individual's status within the gaming organization. If the commission determines that the person is not a key employee or that the public interest does not require his licensing as a key employee, he shall be allowed to withdraw his application and continue in his employment. The request of the key employee applicant for review of his status does not stay the obligation of the licensee to present the key employee's application within the thirty-day period prescribed by this section. The provisions of chapter 1-26 do not apply to this section.

Source: SL 1990, ch 343, § 29.


     42-7B-23.   Annual license stamp fee--Transfer of license stamp. There is imposed a nonrefundable license stamp fee upon each gaming device located on a licensed premises. The annual fee for this stamp is two thousand dollars. The license stamp expires July first of each year. All license stamp fees shall be paid directly to the commission on forms adopted by the commission. The commission may approve the transfer of a license stamp to another gaming device or to another operator without requiring the payment of an additional fee.

Source: SL 1989, ch 374, § 21; SL 1993, ch 321, § 5.


     42-7B-24.   License revocable--Not transferable. Any license that is issued under this chapter is revocable, is not transferable, and no person holding a license acquires any vested interest or property right in the license.

Source: SL 1989, ch 374, § 22.


     42-7B-25.   Qualifications for license as operator, gaming property owner, or retailer. Before any person is licensed as an operator, gaming property owner, or retailer, the person shall show that the person is of good moral character, and if an individual, that the individual is at least twenty-one years of age.

Source: SL 1989, ch 374, § 23; SL 1993, ch 321, § 6; SL 1995, ch 245, § 7; SL 2010, ch 212, § 3.


     42-7B-25.1.   Internal control procedure for particular licensee may be established. The commission may establish an internal control procedure limited to a particular licensee including accounting procedures, reporting procedures, and personnel policies.

Source: SL 1990, ch 343, § 9.


     42-7B-26.   Repealed by SL 2012, ch 207, § 1.


     42-7B-27.   Employee support license--Qualifications. Any individual employed by a retail licensee, operator, route operator, or slot machine manufacturer as a card dealer, floor supervisor, or other gaming employee as determined by the commission, shall have a current valid support license. Any individual seeking a support license shall be a person of at least twenty-one years of age, and of good moral character. The commission may deny a support license to any person discharged for cause by any licensed gaming establishment in this or any other country.

Source: SL 1989, ch 374, § 25; SL 1995, ch 245, § 8; SL 2015, ch 218, § 9.


     42-7B-28.   Gaming tax. There is hereby imposed an eight percent gaming tax on the adjusted gross proceeds of gaming allowed by this chapter.

Source: SL 1989, ch 374, § 26; SL 1990, ch 344, § 1; SL 1991, ch 100, § 3; SL 1994, ch 331, § 1; SL 1995, ch 246, § 3.


     42-7B-28.1.   Additional tax on gaming proceeds. In addition to the gaming tax imposed by § 42-7B-28, there is hereby imposed an additional one percent tax on the adjusted gross proceeds of gaming allowed by this chapter. The tax shall be paid to the commission and transferred to the general fund on a monthly basis notwithstanding the provisions of §§ 42-7B-48 and 42-7B-48.1.

Source: SL 2009, ch 217, § 1.


     42-7B-28.2.   Calculation of adjusted gross proceeds. When calculating adjusted gross proceeds for the purpose of applying the tax imposed by §§ 42-7B-28 and 42-7B-28.1:
             (1)      Free play value provided by the operator may not be included in the gross proceeds; and
             (2)      Cash prizes deducted shall be adjusted to not include an amount equal to ninety percent of the free play value provided by the operator.

Source: SL 2015, ch 219, § 1.


     42-7B-29.   Return and remittance--Forms furnished by secretary. Not later than fifteen days following the end of each month, each gaming licensee shall make a return and remittance to the executive secretary on forms prescribed and furnished by the executive secretary. The executive secretary may grant an extension of not more than five days for filing a return and remittance. Unless an extension is granted, penalty or interest under § 42-7B-31 shall be paid if a return or remittance is not made on time.

Source: SL 1989, ch 374, § 26A; SL 1990, ch 343, § 18.


     42-7B-30.   Violations of taxation provisions punishable as felony or misdemeanor. Any person who:
             (1)      Makes any false or fraudulent return in attempting to defeat or evade the tax imposed by this chapter guilty of a Class 6 felony;
             (2)      Fails to pay tax due under this chapter within thirty days from the date the tax becomes due is guilty of a Class 1 misdemeanor;
             (3)      Fails to file a return required by this chapter within thirty days from the date the return is due is guilty of a Class 1 misdemeanor;
             (4)      Violates either subdivision (2) or subdivision (3) two or more times in any twelve-month period is guilty of a Class 6 felony.
     For purposes of this section "person" includes corporate officers having control, supervision of or charged with the responsibility for making tax returns or payments pursuant to this chapter.

Source: SL 1989, ch 374, § 26B.


     42-7B-31.   Failure to file--Penalties. Any person required to file returns or reports under this chapter, who fails to file a return or report which includes all taxable transactions within fifteen days following the date the return or report is due is subject to an additional amount, assessed as a penalty, equal to fifteen percent of the tax or ten dollars whichever is greater. However, for reasonable cause shown, the executive secretary may reduce or eliminate such penalty. Any person subject to tax under this chapter who fails to pay the tax within the time prescribed is subject to an interest charge of two percent per month or part thereof for which the payment is late or five dollars whichever is greater. Penalty and interest are considered the same as tax for the purposes of collection and enforcement including liens, distress warrants and criminal violations. Any payment received for taxes, penalty, or interest is applied first to tax, beginning with the oldest delinquency, then to interest and then to penalty. The executive secretary may, upon application of the taxpayer, establish a maximum interest rate of thirty-six percent upon delinquent taxes if the executive secretary determines that the delinquent payment was caused by a mistake of law and was not caused by an intent to evade the tax.

Source: SL 1989, ch 374, § 26C; SL 1990, ch 343, § 18A.


     42-7B-32.   Suspension or revocation of license--Grounds--Reprimand or monetary penalty. Any license granted pursuant to this chapter may be suspended or revoked for any cause which may have prevented its issuance, or for violation by the licensee, or any officer, director, agent, member, or employee of the licensee, of this chapter or any rule adopted by the commission or for conviction of a crime of moral turpitude or a felony, after notice to the licensee and a hearing, upon grounds determined adequate by the commission. In addition to revocation or suspension or in lieu of revocation or suspension, the commission may impose a reprimand or a monetary penalty for each offense not to exceed the following amounts:
             (1)      If the licensee is a slot machine manufacturer or distributor, two hundred fifty thousand dollars;
             (2)      If the licensee is an operator or associated equipment manufacturer or distributor, one hundred thousand dollars;
             (3)      If the licensee is a retailer or gaming property owner, twenty-five thousand dollars;
             (4)      If the licensee is a key employee, five thousand dollars; and
             (5)      If the licensee has a support license, two thousand five hundred dollars.
     Any monetary penalty received by the commission under this section shall be deposited in the gaming commission fund established by § 42-7B-48 and is to be used solely for the purposes prescribed by subdivision 42-7B-48(2) and is not subject to the provisions of subdivision 42-7B-48(3).

Source: SL 1989, ch 374, § 27; SL 1990, ch 343, § 27; SL 2010, ch 212, § 4; SL 2015, ch 220, § 1; SL 2019, ch 192, § 3.


     42-7B-33.   Person involved as manufacturer, distributor, operator, retailer, gaming property owner, key employee, or support licensee--Qualifications. Any person, any stockholder owning five percent or more of any corporation or limited liability company, and any officer or director, or any partner in any partnership involved as a manufacturer, distributor, operator, retailer, or gaming property owner, or key employee or support licensee involved with the conduct of gaming shall be:
             (1)      A person of good character, honesty, and integrity;
             (2)      A person whose prior activities, criminal record, reputation, habits, and associations do not pose a threat to the public interests of this state or to the control of the gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental to the conduct of gaming; and
             (3)      A person who has not entered a plea of guilty or nolo contendere to a felony charge or has not been convicted of a felony in this or any other jurisdiction, has not been found to have violated the provisions of this chapter or any rule adopted pursuant to this chapter, and has not knowingly made a false statement of material facts to the commission or its legal counsel.

Source: SL 1989, ch 374, § 28; SL 1990, ch 343, § 19; SL 1995, ch 245, § 9; SL 2010, ch 212, § 5; SL 2019, ch 192, § 4.


     42-7B-34.   Repealed by SL 1993, ch 321, § 8


     42-7B-35.   Age of participants--Violation as misdemeanor. Any participant in any gaming shall be twenty-one years or older. No licensee may permit any person who is less than twenty-one years of age to participate in any gaming. A violation of this section by a participant is a Class 1 misdemeanor and a violation by a licensee is a Class 1 misdemeanor and may form the basis for revocation of a retail license.

Source: SL 1989, ch 374, § 30; SL 1990, ch 343, § 31; SL 2015, ch 218, § 10.


     42-7B-36.   Minimum payback value of credit. The minimum payback value of one credit played on a slot machine shall be at least eighty percent of the value of the credit.

Source: SL 1989, ch 374, § 31; SL 1995, ch 245, § 10.


     42-7B-37.   Exemption from federal law. Pursuant to section 2 of an act of Congress of the United States entitled "An Act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, designated 15 U.S.C. §§ 1171 to 1177, inclusive, and in effect January 1, 1989, the State of South Dakota acting by and through its elected and qualified members of its Legislature, does hereby, and in accordance with and in compliance with the provisions of section 2 of the act of Congress, declare and proclaim that it is exempt from the provisions of section 2 of that act of Congress of the United States as above mentioned, as regards gaming devices legally operated, used, repaired, stored, or transported within the state.

Source: SL 1989, ch 374, § 32; SL 1996, ch 258, § 1.


     42-7B-38.   Shipments of devices and machines deemed legal. All shipments of gaming devices, including slot machines, into and within this state, the registering, recording, and labeling of which has been duly had by the manufacturer or dealer thereof in accordance with sections 3 and 4 of an act of Congress of the United States entitled "An Act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, designated as 15 U.S.C. §§ 1171 to 1177, inclusive, and in effect on January 1, 1989, shall be deemed legal shipments thereof, when transported into or within the state to any manufacturer, distributor, operator, retailer, or route operator legally licensed pursuant to this chapter or by compact.

Source: SL 1989, ch 374, § 33; SL 1995, ch 245, § 11; SL 1996, ch 258, § 2.


     42-7B-39.   Shipping records required to be maintained--Report by recipient--Transport out of state--Violation as felony. Any slot machine manufacturer or distributor shipping a slot machine into the State of South Dakota shall maintain for a period of at least five years from the time of shipment, the following records: a copy of the shipping invoice including at least the destination and the serial number of each machine and a description of each machine. Any person within the State of South Dakota receiving a slot machine shall maintain for a period of at least five years from the time of receipt the following records: information showing at least the location of each machine, its serial number, and description. This report shall be completed and maintained regardless of whether the machine is received from a manufacturer or any other person. Any machine licensed pursuant to this chapter shall be licensed for a specific location and movement of the machine from that location shall be reported to the commission within twenty-four hours. If the machine is to be transported out of the State of South Dakota, the movement of the machine shall be recorded and maintained by the licensee for not less than five years from the time of movement. Possession of an unapproved device is a Class 6 felony. Any slot machine not in compliance with this chapter is declared contraband and may be summarily seized and destroyed after notice and hearing.

Source: SL 1989, ch 374, § 34; SL 1993, ch 321, § 9; SL 1997, ch 245, § 1.


     42-7B-39.1.   Shipping records delivered to commission. Any person or custodian in possession of any records required to be maintained by § 42-7B-39 shall deliver the records to the commission or its executive secretary upon request.

Source: SL 1997, ch 245, § 2.


     42-7B-39.2.   Destruction of seized slot machine. Any slot machine seized pursuant to the provisions of § 42-7B-39 may be destroyed after notice and without hearing if the person from whom the slot machine was seized fails to appear at the time and place scheduled in the hearing notice.

Source: SL 2015, ch 220, § 2.


     42-7B-40.   Licensed employee twenty-one years or older required on premises. Any retail licensee under this chapter shall have at least one licensed employee that is at least twenty-one years of age on the premises or within a contiguous premises in full view and control of any gaming operated on the premises. The commission shall adopt rules, pursuant to chapter 1-26, to establish the number of employees required to monitor the premises. The rules may also authorize the use of electronic devices or other types of monitoring equipment.

Source: SL 1989, ch 374, § 35; SL 1995, ch 245, § 12; SL 1998, ch 263, § 1; SL 2015, ch 218, § 11.


     42-7B-41.   False statement or failure to keep books and records--Violations as felony. Any person who knowingly makes a false statement in any application for a license or in any statement attached to the application, fails to keep books and records to substantiate the receipts, expenses, or uses resulting from limited card games and slot machines conducted under this chapter as prescribed in rules promulgated by the commission, or who falsifies any books or records so as the books or records relate to any transaction connected with the holding, operating, and conducting of any limited card games or slot machines is guilty of a Class 6 felony.

Source: SL 1989, ch 374, § 36; SL 1993, ch 321, § 10; SL 1995, ch 245, § 13.


     42-7B-42.   Unlawful acts by participants--Felony. It is unlawful for any person playing or conducting any authorized game of chance, conducted by a licensee to:
             (1)      Use bogus or counterfeit chips, tokens, devices, coins, tickets, cards, dice, roulette balls, or any other item of artificial value;
             (2)      Employ or have on one's person any cheating device to facilitate cheating in any game of chance;
             (3)      Use any fraudulent scheme or technique; or
             (4)      Have located on the premises equipment for gaming that is not licensed by the commission pursuant to this chapter except any equipment exempted by the commission, this chapter, or other statutes.
     A violation of this section is a Class 5 felony.

Source: SL 1989, ch 374, § 37; SL 1990, ch 343, § 20; SL 1995, ch 245, § 14; SL 2015, ch 218, § 12; SL 2018, ch 256, § 2.


     42-7B-42.1.   Repealed by SL 1995, ch 245, § 15


     42-7B-43.   Slot machines--Security and audit specifications. All slot machines and associated equipment allowed under this chapter shall have the security and audit specifications established in rules adopted by the commission.

Source: SL 1989, ch 374, § 38; SL 1990, ch 343, § 21; SL 2018, ch 256, § 3.


     42-7B-44.   Expenditure of public funds for purchase of certain machines--Proceeds--Placement. The City of Deadwood may expend public funds for the purchase of five-cent or less slot machines and may own or lease no more than fifty five-cent or less slot machines to be placed within the city. The machines shall be licensed and stamped by the commission; however, no license stamp fee applies to these machines. The net proceeds generated by the operation of these machines minus lease or purchase payments shall be deposited in the South Dakota commission fund. The City of Deadwood may contract for these machines and these machines may only be placed in a retail licensed business.

Source: SL 1989, ch 374, § 39; SL 1990, ch 343, § 22; SL 2009, ch 218, § 1.


     42-7B-45.   Extension of credit prohibited--Violation as felony. No licensed gaming establishment, licensee acting within the scope of employment as a licensee, or employee of a licensed gaming establishment acting within the scope of the employee's employment may extend credit to another person for participation in limited card games and slot machines. A violation of this section is a Class 6 felony.

Source: SL 1989, ch 374, § 40; SL 1995, ch 245, § 16.


     42-7B-46.   Historic restoration and preservation fund created. There is hereby created within the City of Deadwood a special fund to be known as the historic restoration and preservation fund. The Deadwood city commission shall appropriate amounts from this fund, remaining in any fiscal year after provision for the requirements of any revenue bonds issued under § 42-7B-54, to the Historic Preservation Commission established pursuant to chapter 1-19B which may expend those funds for loans, grants and purchases in the manner and for the purposes set out in chapter 1-19B and according to standards established by the State Historical Society Board of Trustees.

Source: SL 1989, ch 374, § 41; SL 1990, ch 344, § 2.


     42-7B-47.   Limited card games and slot machines exempt from certain other statutes. Limited card games and slot machines are exempt from §§ 53-9-2, 22-25-13, and 22-25-14 and all other acts in conflict with this chapter.

Source: SL 1989, ch 374, § 42.


     42-7B-48.   South Dakota Gaming Commission fund established--Disbursements. There is established within the state treasury the South Dakota Gaming Commission fund, into which shall be deposited the proceeds from the gaming tax, license stamp fees, license fees, application fees, the net proceeds generated by the operation of the five-cent slot machines, and the initial fund is continuously appropriated for the purposes specified in this section. All funds received by the commission shall be set forth in an informational budget as described in § 4-7-7.2 and be annually reviewed by the Legislature. Any disbursement from the Gaming Commission fund shall be by authorization of the executive secretary for any of the following purposes:
             (1)      Forty percent of the gaming tax collected shall be transferred to the tourism promotion fund created in § 1-52-17, and ten percent of the gaming tax collected shall be paid to Lawrence County;
             (2)      The expenses of the commission for administration and operation including litigation and enforcement of this chapter and chapter 42-7 and for grants as provided by § 42-7B-48.3; and
             (3)      All funds remaining after the payments provided in subdivisions (1) and (2), less one hundred thousand dollars which shall be transferred to the historical preservation loan and grant fund created in § 1-19A-13.1 constitute the net municipal proceeds and shall be disbursed at least quarterly to the City of Deadwood for deposit in the historic restoration and preservation fund.

Source: SL 1989, ch 374, § 43; SL 1991, ch 349, § 38; SL 1993, ch 320, § 12 rejected by referendum held September 14, 1993; SL 1994, ch 332, § 1; SL 2006, ch 222, § 2.


     42-7B-48.1.   Distribution of funds following payment of net municipal proceeds to City of Deadwood. Disbursements from the Gaming Commission fund shall be as set forth in § 42-7B-48 until such time as the net municipal proceeds paid to the City of Deadwood equals six million eight hundred thousand dollars for each year, and after payment of commission expenses pursuant to subdivision 42-7B-48(2), and after payment of one hundred thousand dollars to the State Historical Preservation Grant and Loan fund pursuant to subdivision 42-7B-48(4). Thereafter, all remaining funds shall be distributed as follows:
             (1)      Seventy percent to the state general fund;
             (2)      Ten percent to be distributed to municipalities in Lawrence County, except the City of Deadwood, pro rata according to their population;
             (3)      Ten percent to be distributed to school districts, pro rata based upon the previous year's average daily membership, located in whole or in part, in Lawrence County. For any school district located only partly in Lawrence County, only that portion of the district's average daily attendance which represents students residing in Lawrence County shall be considered in calculating the proration required by this subdivision; and
             (4)      Ten percent to the City of Deadwood for deposit in the historic restoration and preservation fund.

Source: SL 1995, ch 246, § 1.


     42-7B-48.2.   General state aid to school districts reduced by payments from Gaming Commission fund. Payments received by a school district in accordance with subdivision 42-7B-48.1(3), shall reduce on a dollar for dollar basis any general state aid otherwise payable to the school district. However, no state aid payments received by a school district pursuant to §§ 13-13-82 and 13-13-83 may be included in that reduction.

Source: SL 1995, ch 246, § 2; SL 2008, ch 79, § 4.


     42-7B-48.3.   Gaming addiction treatment and counseling program grants from Gaming Commission fund. The commission may grant an amount not to exceed thirty thousand dollars each fiscal year from the Gaming Commission fund to the Department of Social Services to fund gaming addiction treatment and counseling programs in the state.

Source: SL 2006, ch 222, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 163, eff. Apr. 12, 2011.


     42-7B-49.   Acceptance and expenditure of funds by commission. The South Dakota Gaming Commission may accept and expend for the purpose of this chapter and chapter 42-7, in addition to the amount in SL 1989, ch 374, § 43A, any funds obtained from federal sources, gifts, contributions, or any other source if such acceptance and expenditure is approved in accordance with § 4-8B-10.

Source: SL 1989, ch 374, § 43B; SL 1991, ch 349, § 39.


     42-7B-50.   Payment of expenditures. Expenditures authorized by this chapter and chapter 42-7 shall be paid on warrants drawn by the state auditor on vouchers approved by the executive secretary of the South Dakota Gaming Commission.

Source: SL 1989, ch 374, § 43C; SL 1991, ch 349, § 40.


     42-7B-51.   Repealed by SL 1990, ch 343, § 28


     42-7B-52.   Taxes and fees to support identified entities. Notwithstanding any other provision of law to the contrary, the taxes and fees provided in this chapter shall go into effect to support the entities identified in this chapter.

Source: SL 1989, ch 374, § 43E.


     42-7B-53.   Statement of public policy--Equipment not subject to certain exclusive agreements. It is the public policy of this state that gaming equipment authorized and approved by the commission may not be subject to any exclusive agreements entered prior to March 15, 1989.

Source: SL 1989, ch 374, § 43F.


     42-7B-54.   Anticipatory revenue bonds. The City of Deadwood may issue revenue bonds in anticipation of the receipt of net municipal proceeds as provided in subdivision 42-7B-48(4). The proceeds of the sale of such revenue bonds shall be deposited in the Deadwood historic restoration and preservation fund and used for the purposes thereof. The revenue bonds shall be payable solely from the net municipal proceeds, and the city shall, in the ordinance or resolution authorizing the revenue bonds, irrevocably pledge and appropriate so much of the net municipal proceeds received by the city as may be necessary for the payment of the revenue bonds and the restoration of any reserves established in connection with the bonds. The principal amount of any issue of revenue bonds may not exceed the sum of the estimated capital needs of the historic restoration and preservation fund for the current and next three succeeding fiscal years of the city, a debt service reserve fund not exceeding the maximum annual debt service on the issue, the premium for bond insurance or other credit enhancement for the issue and the estimated cost of issuance of the revenue bonds. The revenue bonds shall be authorized, issued and sold as provided in chapter 6-8B, except that no election is required to authorize the issuance of the bonds.

Source: SL 1990, ch 344, § 3.


     42-7B-55.   Certain gambling statutes not applicable. Sections 21-6-1, 21-6-2, and 53-9-2 do not apply to authorized gaming and lotteries.

Source: SL 1990, ch 343, § 1.


     42-7B-56.   Appointment of commission employee as law enforcement officer. The commission may appoint an employee to be a law enforcement officer pursuant to § 23-3-27. Any person appointed as a law enforcement officer under this section shall qualify, become certified and remain certified pursuant to law. The commission may revoke the appointment at any time.

Source: SL 1990, ch 343, § 3.


     42-7B-57.   Commission use of unmarked vehicles. The commission may exempt certain of its motor vehicles from the provisions of §§ 32-5-43 and 32-5-44 in order to provide unmarked vehicles to its employees and agents.

Source: SL 1990, ch 343, § 4.


     42-7B-58.   Records--Confidentiality--Exception for official purposes and tax purposes. Information and records of the Commission on Gaming enumerated by this section are confidential and may not be disclosed except pursuant to a court order. No person may use a subpoena, discovery, or other applicable statutes to obtain such information or records. Information and records considered confidential include:
             (1)      Tax returns of individual licensees;
             (2)      Applications, credit, medical, and security reports of applicants for licensees and other persons seeking or doing business with the commission;
             (3)      Marketing, financial, or sales data the disclosure of which may be harmful to the competitive position of Deadwood gaming, its retailers, licensees, or persons seeking or doing business with the commission;
             (4)      Audit work papers, worksheets, and auditing procedures used by the commission, its agents, or employees; and
             (5)      Information gathered pursuant to § 42-7B-9.1.
     This section does not apply to requests for such information or records from the Governor; attorney general; the state's attorney of Lawrence County; officers, employees, or legal representatives of the Department of Revenue for the purpose of and only to the extent necessary in the investigation and audit procedures authorized by Title 10; law enforcement officers of any other municipality or state or federal agency or department for a law enforcement activity if the head of that agency or department requesting such information makes a written request to the executive secretary specifying the particular information requested and specifying the law enforcement activity for which the information is sought; or the use of such information or records by the executive secretary or commission for official purposes.
     This section may not be construed to make confidential the aggregate tax collections during any reporting period, the names and businesses of licensees, or figures showing the aggregate amount of money bet during any reporting period.

Source: SL 1990, ch 343, § 5; SL 1992, ch 70, § 3; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.


     42-7B-59.   Certain communications between commission and secretary privileged and confidential. Communications between the commission and the executive secretary relating to licensing, disciplining of licensees, or violations by licensees are privileged and confidential if made lawfully and in the course of and in furtherance of the business of the commission on gaming, except pursuant to court order after an in-camera review. The executive secretary, the commission, or any member of the commission may claim this privilege.

Source: SL 1990, ch 343, § 8.


     42-7B-60.   Exclusion or ejection of certain persons from gaming establishments necessary. The Legislature hereby declares that the exclusion or ejection of certain persons from licensed gaming establishments is necessary to carry out the policies of this chapter and to maintain effectively the strict regulation of licensed gaming.

Source: SL 1990, ch 343, § 24.


     42-7B-61.   List of persons to be excluded--Entrance in violation as misdemeanor--Penalty for failure to exclude or eject persons on list. The commission may, by rules promulgated pursuant to chapter 1-26, provide for the establishment of a list of persons who are to be excluded or ejected from any licensed gaming establishment, including any person whose presence in the establishment is determined to pose a threat to the interest of the State of South Dakota or to licensed gaming, or both. In making the determination for exclusion, the commission may consider any of the following:
             (1)      Prior conviction of a felony, a misdemeanor involving moral turpitude, or a violation of the gaming laws of any state, the United States, any of its possessions or territories including Indian tribes;
             (2)      A violation, attempt to violate or conspiracy to violate the provisions of this chapter relating to the failure to disclose an interest in a gaming establishment for which the person must obtain a license or make disclosures to the commission; or intentional evasion of fees or taxes;
             (3)      Notorious or unsavory reputation that would adversely affect public confidence and trust that the gaming industry is free from criminal or corruptive influences; or
             (4)      Conduct that would adversely affect public confidence that gaming is conducted honestly.
     Any person who has been placed on the list of excluded persons by the commission, after July 1, 2014, who enters a licensed gaming establishment after receiving notice as required by § 42-7B-62, is guilty of a Class 1 misdemeanor.
     The commission may suspend, revoke, or penalize a licensee or licensed gaming establishment as set forth in § 42-7B-32, after notice and hearing pursuant to chapter 1-26, if that establishment or any licensee affiliated with the licensed gaming establishment knowingly fails to exclude or eject from the premises of the licensed establishment any person placed on the list of persons to be excluded.

Source: SL 1990, ch 343, § 25; SL 2014, ch 207, § 1.


     42-7B-62.   Notice to excluded person. If the name and description of any person is placed on the exclusion list, the commission shall serve notice of that action upon the person by at least one of the following means:
             (1)      By personal service;
             (2)      By certified or registered mail to the last known address of the person; or
             (3)      By publication in an official newspaper in Lawrence County, South Dakota.
     A person place upon the exclusion list may contest that action by filing a written protest with the commission and the protest shall be heard by the commission as a contested case pursuant to chapter 1-26.

Source: SL 1990, ch 343, § 26; SL 1991, ch 24, § 17.


     42-7B-63.   Repealed by special referendum election held September 14, 1993


     42-7B-64.   "Gaming contract" defined. For the purposes of this chapter, a gaming contract is any contract between licensees, and also a contract between a licensee and a nonlicensee which directly or indirectly relates to the employment of licensed personnel, which relates to the acquisition or use of capital assets used by the licensee in the business of gaming, or which relates to the earnings or profits of the licensee from the business of gaming, or any other contract which affects the proprietary or financial interest of the licensee's gaming business or gaming license.

Source: SL 1993, ch 321, § 2.


     42-7B-65.   Copy of any process or pleading to the commission. A licensee shall deliver a copy of any process or pleading from any jurisdiction in which the licensee is a party to the commission within thirty days of being served by or upon them. This requirement includes any agency or regulatory proceeding in which the licensee is a party.

Source: SL 1993, ch 321, § 11.


     42-7B-66.   Copies of all proposed gaming contracts to the executive secretary. A person shall submit copies of all proposed gaming contracts to the executive secretary. The executive secretary or the commission may approve or deny gaming contracts and require changes in the contracts before participation by the licensee is allowed. The executive secretary or the commission may require a licensee to terminate participation in a gaming contract.

Source: SL 1993, ch 321, § 12.


     42-7B-67.   Notification by licensee of involvement in gaming operations out of state or on any Indian reservation. Any licensee who intends to become involved in gaming operations outside of the State of South Dakota or on any Indian reservation located in whole or in part in the State of South Dakota shall notify the commission in writing of that licensee's intention to engage in such additional gaming operations and gaming business. Notification shall be mailed or delivered to the commission simultaneously with that licensee's application to the foreign state or applicable Indian authority. The executive secretary and the commission may impose all sanctions otherwise authorized by this chapter on any licensee who fails to comply with the provisions of this section.

Source: SL 1993, ch 321, § 13.


     42-7B-68.   Fees for publication and reports. The commission may charge a fee for copies of publications and reports provided to the public and for the costs of mailing and distribution at a rate set by the commission.

Source: SL 1993, ch 321, § 14.


     42-7B-69.   Manufacture of gaming devices or equipment for exportation. Any slot machine manufacturer who is licensed pursuant to this chapter may manufacture gaming devices or equipment for exportation outside this state subject to rules promulgated by the commission pursuant to chapter 1-26.

Source: SL 1993, ch 321, § 15.


     42-7B-70.   Provision applicable to manufacture of gaming devices and equipment for exportation. The provisions of §§ 42-7B-37, 42-7B-38, and 42-7B-39 apply to the manufacture of gaming devices and equipment for exportation outside this state as authorized by the commission.

Source: SL 1993, ch 321, § 17.


     42-7B-71.   Provision of interlink communications service to slot machines--Not applicable in Deadwood. A licensed manufacturer or distributor may supply a licensed operator with a communications service to interlink progressive slot machines and related equipment where such gaming is authorized by law, and may provide accounting, collection, and disbursement services relating to the prizes.
     This section does not apply to gaming in the City of Deadwood and the provisions of this section are not intended to diminish or expand the authority of the commission to permit or regulate gaming in the City of Deadwood.

Source: SL 1994, ch 333.


     42-7B-72.   Lien for tax, penalty or interest due--Notice of tax lien filed with register of deeds--Priority. Any tax, penalty, or interest due under this chapter is a lien in favor of the commission upon all property and rights to property whether real or personal belonging to the taxpayer. In order to preserve the lien against subsequent mortgages, purchasers, or judgment creditors for value and without actual notice of the lien on any property situated in a county, the commission may file with the register of deeds of the county a notice of the tax lien in such form as the commission determines. The priority of the lien shall be determined as of the date the notice of tax lien is received and indexed by the register of deeds. The notice of tax lien shall create a lien in each county where the notice of tax lien is recorded.

Source: SL 2013, ch 220, § 1, eff. Mar. 6, 2013.


     42-7B-73.   Distress warrant--Seizure and sale of personal property. After a notice of lien has been filed as provided in § 42-7B-72, the commission may at any time require the county treasurer to issue a distress warrant in the manner provided in chapter 10-56. Immediately upon receipt of the warrant, the sheriff shall proceed to collect the tax, penalty, or interest due by seizure and sale of personal property as provided in chapter 10-56. The sheriff shall remit the amount collected to the county treasurer who shall remit the money to the commission. For such service, the sheriff may collect from the taxpayer and retain the compensation provided in chapter 10-56, but the sheriff's compensation may not be deducted from any tax, penalty, or interest collected.
     Checking, savings, and similar accounts are personal property and are subject to seizure by the sheriff for the purpose of satisfying the distress warrant.

Source: SL 2013, ch 220, § 2, eff. Mar. 6, 2013.


     42-7B-74.   Personal liability of corporate officers, member-managers or managers of limited liability companies, or partners--Bond or certificate of deposit. If a corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership subject to tax under this chapter fails for any reason to file the required returns or to pay the tax due, any of the corporate officers, member-managers or managers of limited liability companies, or partners of partnerships that control, supervise, or are charged with the responsibility of filing the returns or remitting tax payments shall be personally liable for the failure. The dissolution of a corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership does not discharge an officer, member-manager, manager, or partner's liability for a prior failure of the corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership to file a return or remit the tax due. The sum due for such a liability may be assessed and collected as provided by law.
     If the corporate officers, limited liability company member-managers or managers, or partners elect not to be personally liable for the failure to file the required returns or to pay the tax due, the corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership shall provide the commission with a surety bond or certificate of deposit as security for payment of any tax that may become due. The bond or certificate of deposit provided for in this section shall be in an amount equal to the estimated annual taxes due under this chapter.

Source: SL 2013, ch 220, § 3, eff. Mar. 6, 2013.


     42-7B-75.   Cancellation or revocation of voluntarily surrendered license. Any license granted pursuant to the provisions of this chapter which is voluntarily surrendered by the licensee may be cancelled or revoked without a hearing unless the licensee files a written request for a hearing within thirty days after receiving written notice of the revocation or cancellation from the commission.

Source: SL 2015, ch 220, § 3.


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