<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.s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0 { 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.s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s43e9d7f9-8b71-4483-8c69-aafae8cbe20e000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000003 { 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="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=20:18:35:36"><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000000">20:18:35:36</span></a><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000001">.  </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000001">Amount of reserve -- Transfer, access, and audit</span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000001">.</span><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0"> </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">The reserve must be not less than the greater of $25,000 or the sum of the following amounts:</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20e000002"> </span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    (1)  The daily ending cashable balance of all patrons' wagering accounts;</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    (2)  Pending withdrawals;</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    (3)  Amounts accepted by the licensee or sports wagering services provider on sports bets whose outcomes have not been determined; and</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    (4)  Amounts owed but unpaid on winning sports bets through the period established by the licensee or sports wagering services provider for honoring winning sports bets.</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20e000002"> </span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">Funds held in wagering accounts may not be automatically transferred by a licensee or sports wagering services provider. A licensee or sports wagering services provider may not require a patron to transfer funds from his or her wagering account in order to circumvent this rule</span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">.</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20e000002"> </span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">Amounts available to patrons for play that are not redeemable for cash may be excluded from the reserve computation</span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">.</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20e000002"> </span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">A licensee or sports wagering services provider shall ensure the amount of its reserve is sufficient and shall maintain access to all wagering accounts and transaction data. Unless otherwise directed by the commission, a licensee or sports wagering services provider shall file a monthly attestation with the commission, in the form and manner prescribed by the commission through internal control procedures, that funds have been safeguarded under this section</span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">.</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20e000002"> </span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">The commission may audit a licensee s or sports wagering services provider s reserve at any time and may direct a licensee or sports wagering services provider to take any action necessary to ensure the purposes of this section are achieved. The commission may require the licensee or sports wagering services provider to modify the form of its reserve or increase the amount of its reserve</span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">.</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20e000002"> </span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000001">Source:</span><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0"> </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">48 SDR 14, effective August 22, 2021</span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">.</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000001">General Authority:</span><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-7"><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000003">42-7B-7</span></a><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-11"><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000003">42-7B-11</span></a><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">(13).</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">    </span><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000001">Law Implemented:</span><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-2.1"><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000003">42-7B-2.1</span></a><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">(1), </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7B-43"><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0-000003">42-7B-43</span></a><span class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eC0">.</span></p><p dir="ltr" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20eP0"><span xml:space="preserve" class="s43e9d7f9-8b71-4483-8c69-aafae8cbe20e000002"> </span></p></div></body></html>