<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.s34192404-619e-4c2f-b82f-435e4c397ddeP0 { 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.s34192404-619e-4c2f-b82f-435e4c397ddeC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s34192404-619e-4c2f-b82f-435e4c397ddeC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s34192404-619e-4c2f-b82f-435e4c397ddeC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s34192404-619e-4c2f-b82f-435e4c397dde000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s34192404-619e-4c2f-b82f-435e4c397ddeP1 { 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%; } </style></head><body><div><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP0"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:18:35:20"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000000">20:18:35:20</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000001">.  </span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000001">Tournament payout, fees, taxes, and rake</span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000001">.</span><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0"> </span><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">Fees collected, less cash prizes paid, are subject to the wagering taxes pursuant to SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-28"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-28</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-28"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-28</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.1 and </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-28"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-28</span></a><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.2. In determining sports wagering net receipts, to the extent that cash prizes paid out exceed fees collected, the licensee or sports wagering service provider shall be deemed to have paid the fees for the participants</span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.</span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP0"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397dde000003"> </span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP0"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">    </span><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">The licensee or sports wagering services provider shall be responsible for the rake. The rake may not exceed 10% of fees collected unless otherwise approved by the commission. The licensee s or sports wagering services provider s rake collected from patrons that enter a tournament, contest, or pool while located in the state of South Dakota less any rake adjustment, if applicable, is subject to the wagering taxes pursuant to SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-28"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-28</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-28"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-28</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.1 and </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-28"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-28</span></a><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.2 as are paid on sports wagering net receipts, with the following additional requirements</span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">:</span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP0"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397dde000003"> </span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP1"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">    </span><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">(1)  </span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">At no time may the calculation resulting from a rake or rake adjustment be negative; an</span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">d</span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP1"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">    (2)  </span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">For a tournament, contest, or pool that utilizes shared liquidity available to patrons in South Dakota and other jurisdictions, the rake rate must be the same for all jurisdictions participating</span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.</span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP0"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397dde000003"> </span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP0"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">    </span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000001">Source:</span><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0"> </span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">48 SDR 14, effective August 22, 2021</span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.</span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP0"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">    </span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000001">General Authority:</span><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-7"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-7</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-11"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-11</span></a><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">(13).</span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP0"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">    </span><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000001">Law Implemented:</span><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-2.1"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-2.1</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">(1), </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-28"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-28</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-28"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-28</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.1, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-28"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-28</span></a><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.2, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-43"><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0-000002">42-7B-43</span></a><span class="s34192404-619e-4c2f-b82f-435e4c397ddeC0">.</span></p><p dir="ltr" class="s34192404-619e-4c2f-b82f-435e4c397ddeP0"><span xml:space="preserve" class="s34192404-619e-4c2f-b82f-435e4c397dde000003"> </span></p></div></body></html>