<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.s075b0100-3b87-4da3-afc8-f5216e884cfaP0 { 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.s075b0100-3b87-4da3-afc8-f5216e884cfaC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s075b0100-3b87-4da3-afc8-f5216e884cfa000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000003 { 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="s075b0100-3b87-4da3-afc8-f5216e884cfaP0"><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:18:35:22"><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000000">20</span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000000">:</span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000000">18</span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000000">:</span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000000">35</span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000000">:</span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000000">22</span></a><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000001">.  </span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000001">Taxation requirements</span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000001">.</span><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0"> </span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">Each licensee or sports wagering services provider shall, at all times, comply with Internal Revenue Service (IRS) requirements for reporting and withholding proceeds from sports bets by patrons and shall send to patrons subject to IRS reporting or withholding a Form W2-G summarizing the information for tax purposes following a winning wager being paid out to the patron. Upon written request, the licensee or sports wagering services provider shall provide patrons with summarized tax information on sports wagering activities.</span></p><p dir="ltr" class="s075b0100-3b87-4da3-afc8-f5216e884cfaP0"><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfa000002"> </span></p><p dir="ltr" class="s075b0100-3b87-4da3-afc8-f5216e884cfaP0"><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">    </span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000001">Source:</span><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0"> </span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">48 SDR 14, effective August 22, 2021</span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">.</span></p><p dir="ltr" class="s075b0100-3b87-4da3-afc8-f5216e884cfaP0"><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">    </span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000001">General Authority:</span><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-7"><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000003">42-7B-7</span></a><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-11"><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000003">42-7B-11</span></a><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">(13).</span></p><p dir="ltr" class="s075b0100-3b87-4da3-afc8-f5216e884cfaP0"><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">    </span><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000001">Law Implemented:</span><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-2.1"><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000003">42-7B-2.1</span></a><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">(1), </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-43"><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0-000003">42-7B-43</span></a><span class="s075b0100-3b87-4da3-afc8-f5216e884cfaC0">.</span></p><p dir="ltr" class="s075b0100-3b87-4da3-afc8-f5216e884cfaP0"><span xml:space="preserve" class="s075b0100-3b87-4da3-afc8-f5216e884cfa000002"> </span></p></div></body></html>