<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 42-7A-43 - Licenses--Background investigation required--Eligibility--Qualifications--Promulgation of rules.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.sa670ea35296f4dfc92f2695944742adcNormal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.sa670ea35296f4dfc92f2695944742adcSENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sa670ea35296f4dfc92f2695944742adcCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.sa670ea35296f4dfc92f2695944742adcStatute { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sa670ea35296f4dfc92f2695944742adc000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sa670ea35296f4dfc92f2695944742adcNoIndent { text-indent: 0.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sa670ea35296f4dfc92f2695944742adcSCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 42-7A-43 - Licenses--Background investigation required--Eligibility--Qualifications--Promulgation of rules."><meta property="og:description" content="SDLRC Codified Law 42-7A-43 - Licenses--Background investigation required--Eligibility--Qualifications--Promulgation of rules."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/42-7A-43"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="sa670ea35296f4dfc92f2695944742adcNormal"><a href="https://sdlegislature.gov/Statutes?Statute=42-7A-43" rel="noopener"><span class="sa670ea35296f4dfc92f2695944742adcSENU">42-7A-43</span></a><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcSENU">. </span><span class="sa670ea35296f4dfc92f2695944742adcCL">Licenses--Background investigation required--Eligibility--Qualifications--Promulgation of rules.</span></p><p dir="ltr" class="sa670ea35296f4dfc92f2695944742adcStatute"><span class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">A person licensed, or applying for licensure, as a video lottery machine manufacturer, distributor, operator, or lottery retailer shall submit to a background investigation. Every partner, member, manager, director, and officer of the person, and any stockholder of five percent or more in the person, including a parent or subsidiary corporation, is subject to the background investigation.</span></p><p dir="ltr" class="sa670ea35296f4dfc92f2695944742adcStatute"><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">A lottery retailer, and a video lottery machine manufacturer or distributor, shall meet the requirements set forth in §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7A-13" rel="noopener"><span class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">42-7A-13</span></a><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7A-14" rel="noopener"><span class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">42-7A-14</span></a><span class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">.</span></p><p dir="ltr" class="sa670ea35296f4dfc92f2695944742adcStatute"><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">A video lottery machine operator shall meet the requirements set forth in §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7A-13" rel="noopener"><span class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">42-7A-13</span></a><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7A-14" rel="noopener"><span class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">42-7A-14</span></a><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">, and must be a resident of this state. The majority of ownership interest of a person licensed as a video lottery machine operator must be held by residents of the state or by a public company, or its subsidiary, traded on any market regulated or recognized by the United States Securities and Exchange Commission, that was licensed as a video lottery machine operator pursuant to chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=42-7A" rel="noopener"><span class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">42-7A</span></a><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont"> prior to January 1, 1997. A copy of any disclosure statement involving ownership of the public company required to be filed with the United States Securities and Exchange Commission must be filed with the lottery commission.</span></p><p dir="ltr" class="sa670ea35296f4dfc92f2695944742adcStatute"><span class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">An applicant for a license under this chapter has the burden of proving the applicant's qualifications to the satisfaction of the commission and executive director.</span></p><p dir="ltr" class="sa670ea35296f4dfc92f2695944742adcStatute"><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">The commission may adopt rules pursuant to chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=1-26" rel="noopener"><span class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont">1-26</span></a><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont"> to establish additional requirements to preserve the integrity and security of the lottery.</span></p><p dir="ltr" class="sa670ea35296f4dfc92f2695944742adcNormal"><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adc000000"> </span></p><p dir="ltr" class="sa670ea35296f4dfc92f2695944742adcNoIndent"><span xml:space="preserve" class="sa670ea35296f4dfc92f2695944742adcDefaultParagraphFont-000001">Source: </span><span class="sa670ea35296f4dfc92f2695944742adcSCL">SL 1989, ch 368, § 22; SL 1993, ch 317, § 10; SL 1997, ch 242, § 1; SL 2025, ch 179, § 1.</span></p></div></body></html>