<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000003 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=48:02:05:04"><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000000">48:02:05:04</span></a><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000001">.  Duties of licensed operators.</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> Specific duties of licensed operators are as follows:</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (1)  Promote the placement of machines in licensed establishments and assume primary responsibility for operation and maintenance of video lottery machines;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (2)  Maintain and provide in accordance with chapter </span><a href="https://sdlegislature.gov/Rules?Rule=48:02:10"><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000003">48:02:10</span></a><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">, either directly or through a service agent, an inventory of associated equipment to ensure the timely repair and continued, approved operation and play of the video lottery machines it operates;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (3)  Maintain</span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">,</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> in accordance with chapter </span><a href="https://sdlegislature.gov/Rules?Rule=48:02:10"><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000003">48:02:10</span></a><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">,</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> all skills necessary for the timely repair and service of machines and associated equipment to ensure the continued, approved operation of the machines it operates and require employees </span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">or</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> service agents to maintain </span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">the same</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> skills;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (4)  Attend all meetings, seminars, and training sessions for the repair and maintenance of machines and associated equipment required by the lottery and this article;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (5)  Supervise its employees and the activities of licensed establishments to ensure compliance with the requirements of this article;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (6)  Assume responsibility for the payment to players of credits awarded under arrangements with licensed establishments where the machines are located;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (7)  Assume responsibility for machine and associated equipment malfunctions, including any claim for the payment of credits arising from malfunctions. An operator's liability is limited to the number of credits for the game displayed in the game rules and may not be greater than $1,000 for any succession of games played;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (8)  Notify the lottery of any recurring electronic or mechanical machine malfunctions or other problems experienced in a particular approved machine model;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (9)  Enter into service contracts for the maintenance and repair of video lottery machines and associated equipment with qualified service agents under terms and conditions agreed upon by both parties;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (10)  Comply with all Type I technician requirements in § </span><a href="https://sdlegislature.gov/Rules?Rule=48:02:10:02.01"><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000003">48:02:10:02.01</span></a><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (11)  Comply with all Type II technician requirements in § </span><a href="https://sdlegislature.gov/Rules?Rule=48:02:10:02.02"><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000003">48:02:10:02.02</span></a><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (12)  Place video lottery machines in establishments and in numbers to ensure maximum revenues to the state;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (13)  Assume </span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">all </span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">responsibility for </span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">establishing communication between each video lottery machine and the host system</span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (14)  Maintain general liability insurance coverage for each machine;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (15)  Conduct advertising and promotional activities of the video lottery in accordance with decency, dignity, honesty, and good taste that does not reflect adversely on the lottery or the state of South Dakota;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (16)  Contract only with persons authorized under this title to directly share in revenues generated from net machine income. Any contracts entered into for the division of revenues from net machine income must clearly state that the lottery is not a party to the agreement;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (17)  Assume liability for lost or stolen money from machine play. Operators may provide for the sharing of any loss with the establishment where the machine is located;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (18)  Furnish security to the lottery by July 1 of each year equal to one-eighteenth of the state's share of estimated annual net machine income derived from the operator's video lottery machines by purchase of a surety bond, deposit in cash, or receipt of an irrevocable letter of credit or a certificate of deposit issued by a South Dakota financial institution with the lottery endorsed on it as a payee;</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (19)  Respond to service calls within </span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">twenty-four</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> hours from the time of notification by the establishment; and</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    (20)  Remove all machines from the establishment machine play area that have been out of service for more than </span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">forty-eight</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> hours from the time notice was received by the lottery.</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    </span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000001">Source:</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> 16 SDR 27, effective August 18, 1989; 21 SDR 219, effective June 26, 1995; 37 SDR 215, effective May 31, 2011</span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">; 49 SDR 51, effective November 27, 2022</span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">.</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    </span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000001">General Authority:</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7A-21"><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000003">42-7A-21</span></a><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">(17), </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7A-43"><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000003">42-7A-43</span></a><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">.</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">    </span><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000001">Law Implemented:</span><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7A-21"><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000003">42-7A-21</span></a><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7A-43"><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0-000003">42-7A-43</span></a><span class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2C0">.</span></p><p dir="ltr" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2P0"><span xml:space="preserve" class="s7cd6124b-74f5-428f-b79c-cb8fda9f2cf2000002"> </span></p></div></body></html>