<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.scbce91d2-92e5-4fb4-8025-cfae9754a12fP0 { 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.scbce91d2-92e5-4fb4-8025-cfae9754a12fC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.scbce91d2-92e5-4fb4-8025-cfae9754a12f000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000003 { 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="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:18:35:35"><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000000">20:18:35:35</span></a><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000001">.  </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000001">Form of reserve</span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000001">.</span><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0"> </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">The reserve must be in the form of:</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12f000002"> </span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    (1)  </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">Cash or cash equivalents maintained in a U.S. bank account segregated from the licensee's or sports wagering services provider s operational funds</span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">;</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    (2)  </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">An irrevocable letter of credit</span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">;</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    (3)  A bond;</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    (4)  </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">Payment processor reserves and receivables</span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">;</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    (5)  </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">Any other form acceptable to the commission pursuant to internal control procedures;</span><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0"> or</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    (6)  </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">Any combination of the allowable forms described in paragraphs (1) to (6)</span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">.</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12f000002"> </span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000001">Source:</span><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0"> </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">48 SDR 14, effective August 22, 2021</span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">.</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000001">General Authority:</span><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-7"><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000003">42-7B-7</span></a><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-11"><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000003">42-7B-11</span></a><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">(13).</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">    </span><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000001">Law Implemented:</span><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-2.1"><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000003">42-7B-2.1</span></a><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">(1), </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-43"><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0-000003">42-7B-43</span></a><span class="scbce91d2-92e5-4fb4-8025-cfae9754a12fC0">.</span></p><p dir="ltr" class="scbce91d2-92e5-4fb4-8025-cfae9754a12fP0"><span xml:space="preserve" class="scbce91d2-92e5-4fb4-8025-cfae9754a12f000002"> </span></p></div></body></html>