Chapter
01. District Community Centers [Repealed]
02. County, Municipal And School District Recreation Systems
03. Fair Corporations [Repealed]
04. Public Dance Halls [Repealed]
05. Endurance Contests [Repealed]
06. Boxing And Wrestling [Repealed]
07. Horse And Dog Racing
07A. State Lottery
07B. Limited Card Games, Slot Machines, Craps, Roulette, And Keno
08. Watercraft
09. Amusements On Holidays [Repealed]
10. Amusement Rides
11. Equine Activities
12. Boxing, Kickboxing, Mixed Martial Arts, And Sparring
42-1-1 to 42-1-15. Repealed.
42-2-1
Operation of system authorized--Acquisition and maintenance of land and facilities.
42-2-2
System operated independently, cooperatively, or by recreation board.
42-2-3
Land used for conduct of recreation activities.
42-2-4
Acceptance of gifts--Employment of personnel.
42-2-5
School district tax levy for recreational purposes--Approval by rural and urban
voters--County appropriation.
42-2-6
County appropriation to support activities of the elderly.
42-2-7
Expenditure of county fund for benefit of the elderly.
42-2-8
Municipal appropriations to support activities of the elderly.
42-2-9
Municipal expenditures for benefit of the elderly--Payments to nonprofit
organizations.
42-2-10
Cooperation by counties and municipalities in development and maintenance of parks
and recreation areas.
42-2-11
County and municipal appropriations for cooperative parks and recreation areas--Maximum amount.
42-2-1. Operation of system authorized--Acquisition and maintenance of land and facilities.
Any county, municipality, or school district may operate a system of public recreation and playgrounds, and for such purpose may acquire, equip, and maintain land, buildings, or other recreational facilities, and expend its funds therefor.
Source: SDC 1939, § 53.0301.
42-2-2. System operated independently, cooperatively, or by recreation board.
Any such county, municipality, or school district may operate a system of public recreation and playgrounds independently or in cooperation with any other such public corporation or corporations, or may delegate the operation of such system to a recreation board created by several such public corporations.
Source: SDC 1939, § 53.0302.
42-2-3. Land used for conduct of recreation activities.
Any recreation board created pursuant to § 42-2-2 or any public corporation operating such recreation system may conduct its activities on:
(1) Property under its custody and management;
(2) Other public property, under custody of another public corporation or board, with the consent of such corporation or board;
(3) Private property with consent of the owner.
Source: SDC 1939, § 53.0303.
42-2-4. Acceptance of gifts--Employment of personnel.
Any public corporation or board operating a recreational system pursuant to this chapter may accept gifts or bequests for the benefit of such recreational service and may employ supervisors and directors of recreational work.
Source: SDC 1939, § 53.0304.
42-2-5. School district tax levy for recreational purposes--Approval by rural and urban voters--County appropriation.
Any school district delegating the operation of a recreational system to a recreation board may levy a tax of not to exceed one dollar per thousand dollars of taxable valuation on all taxable property, which levy shall be in addition to all other levies and exclusive of any levy limitations, when voted for such purpose, by a majority vote of the electors at a regular or special election. Such levy may not be authorized unless the elections are conducted in a manner as to provide separate returns and canvass of votes for rural and urban populations, where rural property would be subject thereto, and the issue carries in both areas. A county delegating the operation of a recreational system to a recreation board shall appropriate the required revenue from the county general fund.
Source: SDC 1939, § 53.0302; SL 1971, ch 242; SL 1978, ch 62, § 31; SL 1985, ch 77, § 27.
42-2-6. County appropriation to support activities of the elderly.
The board of county commissioners may appropriate from the county general fund to promote, establish, and maintain recreational, educational, and other activities for the elderly.
Source: SL 1970, ch 244; SL 1985, ch 77, § 28.
42-2-7. Expenditure of county fund for benefit of the elderly.
A board pursuant to § 42-2-6 may make expenditures from time to time to benefit the elderly. The board may make expenditures to nonprofit corporations or associations engaged in aiding activities of the elderly.
Source: SL 1970, ch 244; SL 1971, ch 243; SL 1985, ch 77, § 29.
42-2-8. Municipal appropriations to support activities of the elderly.
The governing body of a municipality may in its discretion appropriate money to promote, establish, and maintain recreational, educational, and other activities of the elderly.
Source: SL 1970, ch 243; SL 1978, ch 62, § 32.
42-2-9. Municipal expenditures for benefit of the elderly--Payments to nonprofit organizations.
A governing body pursuant to § 42-2-8 may by resolution, make expenditures from an appropriation as it may from time to time determine will be of benefit to the elderly. A governing body may make payment from an appropriation or any part thereof within its discretion to nonprofit corporations or associations engaged in aiding activities of the elderly.
Source: SL 1970, ch 243; SL 1971, ch 244; SL 1978, ch 62, § 33.
42-2-10. Cooperation by counties and municipalities in development and maintenance of parks and recreation areas.
The boards of county commissioners of the several counties of this state or the governing body of any municipality therein may cooperate with the Department of Game, Fish and Parks, or with each other, in the acquisition, development, and maintenance of parks and recreation areas within their respective counties or adjacent to their respective municipalities, and are hereby empowered to purchase land, equipment, and materials and to hire services and labor in order to effectuate such cooperation.
Source: SL 1953, ch 117, § 1; SDC Supp 1960, § 12.0617-6; SDCL, § 41-16-2.
42-2-11. County and municipal appropriations for cooperative parks and recreation areas--Maximum amount.
For the purpose of carrying out the provisions of § 42-2-10, the board of county commissioners or the municipal governing body may appropriate out of their general fund a sum not to exceed five thousand dollars per year.
Source: SL 1953, ch 117, § 2; SDC Supp 1960, § 12.0617-6; SDCL, § 41-16-3; SL 1985, ch 77, § 26.
42-4-1, 42-4-2. Repealed.
42-4-3
Repealed.
42-4-4 to 42-4-10. Repealed.
42-4-11
Repealed.
42-4-12
Repealed.
42-4-13
Repealed.
42-4-14 to 42-4-16. Repealed.
CHAPTER 42-7
HORSE AND DOG RACING
42-7-1 42-7-1 to 42-7-46. Repealed by SL 1977, ch 3, § 2 (4)
42-7-47 State policy in exercise of police powers.
42-7-48 Definition of terms.
42-7-49 42-7-49 to 42-7-55. Repealed by SL 1991, ch 349, §§ 2 to 8
42-7-56 Powers and responsibilities of commission on gaming.
42-7-57 License required to hold race meeting or handle money under certificate system--Violation as misdemeanor.
42-7-58 Authority for racing under certificate system--Issuance of license.
42-7-58.1 Satellite facilities of horse or dog track licensees.
42-7-58.2 Wagering on televised races--Request and reciprocal agreement.
42-7-58.3 Approved simulcast races conducted on day assigned by commission.
42-7-58.4 Distribution of contributions.
42-7-58.5 Simulcast wagering in compliance with federal laws.
42-7-58.6 Eligibility for license to operate satellite races absent conducting live meet.
42-7-58.7 Consideration of applications for licenses for satellite facilities and multi-jurisdictional totalizator hubs--Restrictions.
42-7-59 Filing of application for racing license or provision of simulcast signal--Contents.
42-7-60 Bond required of applicant for license--Waiver--Revocation or suspension of license on nonpayment of fees or taxes.
42-7-61 Application for new site submitted to county commissioners--Notice to county auditors--Provision for vote.
42-7-62 Certification of votes on new racing site--Application forwarded to commission if approved by voters.
42-7-63 Fee for collecting and disbursing money--Disposition.
42-7-64 Contents of license for racing under certificate system--Days and hours of racing specified--License issued on basis of calendar year.
42-7-65 Transfer of license or stock ownership subject to approval--Standards applied.
42-7-66 Investigation of stock ownership--Failure to disclose.
42-7-67 Licensing of participants and track personnel--Maximum fee--Duration and privileges conferred--Fine, suspension or revocation.
42-7-68 Allotment of racing days to applicants--Preference to past users--Annual scheduling--Procedure for simulcast or satellite facilities.
42-7-69 42-7-69, 42-7-70. Repealed by SL 2000, ch 212, §§ 6, 7
42-7-71 South Dakota-bred racing fund--Use of fund.
42-7-72 42-7-72. Repealed by SL 1983, ch 301, § 2
42-7-73 Bonus paid to breeder of winner of South Dakota-bred race--Registration of qualifying horses.
42-7-74 42-7-74, 42-7-75. Repealed by SL 1983, ch 301, § 3
42-7-76 Contributions by win bettors--Minors prohibited from participating--Interest acquired--Certificates issued.
42-7-76.1 Accepting of large bets by persons other than licensee as felony.
42-7-76.2 Accepting of medium bets as misdemeanor.
42-7-76.3 Accepting of small bets as misdemeanor.
42-7-77 Place and show betting--Combinations of races for betting.
42-7-78 Deduction from pari-mutuel pool on horse race--Payments to winners.
42-7-78.1 Additional deduction from pools on horse races--Distribution.
42-7-79 Deduction from pari-mutuel pool on dog race--Weekly remittances--Payments to winners.
42-7-79.1 Additional deduction from some pools on dog races--Distribution.
42-7-80 42-7-80. Repealed by SL 2015, ch 63, § 2.
42-7-81 Deduction of breakage from pari-mutuel payments--Licensee to retain breakage.
42-7-82 Time for claiming payments from pari-mutuel pool.
42-7-83 42-7-83. Repealed by SL 1989, ch 367, § 6
42-7-84 Additional withholding by horse licensees.
42-7-84.1 42-7-84.1. Repealed by SL 1989, ch 367, § 8
42-7-85 Portion of horse-racing pari-mutuel pool paid to state.
42-7-86 42-7-86, 42-7-87. Repealed by SL 1989, ch 367, §§ 9, 10
42-7-88 42-7-88. Repealed by SL 1992, ch 303, § 3
42-7-89 Payments to state in lieu of other taxes.
42-7-90 Audit of licensee by auditor-general--Reimbursement of expense.
42-7-91 Grounds for refusal, suspension, or withdrawal of license.
42-7-92 Legal representation of commission--Prosecution of violations.
42-7-93 Fine, revocation, or suspension of license after notice and hearing--Waiting period for new license after revocation.
42-7-94 Decisions and orders in writing--Service on person affected.
42-7-95 Judicial review of commission actions--Cost bond.
42-7-96 Suspensions and fines by racing judges or stewards--Notice and hearing--Appeals--Reference to commission.
42-7-97.1 Suspensions or revocations exceeding racing season.
42-7-98 Receipts retained in special racing fund.
42-7-98.1 Transfer of revenue in special racing fund--Procedure.
42-7-99 42-7-99, 42-7-100. Repealed by SL 1991, ch 349, §§ 34, 35
42-7-101 Devices or expedients to increase horse's speed prohibited.
42-7-102 Interstate combined wagering pool--Take-out of host jurisdiction or facility--Percentage to state.
42-7-103 Combining pari-mutuel pools to establish interstate combined wagering pool.
42-7-104 Physical location as place of business.
42-7-105 Tax of wagers in interstate combined wagering pool.
42-7-106 Breakage calculation for interstate combined wagering pool.
42-7-47. State policy in exercise of police powers.
It is the policy of the State of South Dakota to utilize its police powers to provide forceful and honest state-wide regulation of racing in order to foster honest and fair racing practices, to ensure that all funds contributed are properly distributed and to provide for the health and safety of persons and animals lawfully on the premises of licensed racing facilities.
Source: SL 1978, ch 302, § 1.
42-7-48. Definition of terms.
Terms as used in this chapter mean:
(1) "Commission," the South Dakota Commission on Gaming;
(2) "Dog racing day," a period of twenty-four hours, beginning at midnight, during which period of time a license has been granted by the commission to an association to conduct a contest between dogs for purse, stakes, premium, wager for money or entrance fees on a course;
(3) "Executive secretary," the executive secretary of the South Dakota Commission on Gaming;
(4) "Horse racing day," a period of twenty-four hours, beginning at midnight, during which period of time a license has been granted by the commission to an association to conduct a contest between horses for purse, stakes, premium, wager for money or entrance fees on a course;
(5) "Host facility," the racetrack at which the race is run, or the facility which is designated as the host facility if the race is run in a jurisdiction which is not participating in the interstate combined wagering pool;
(6) "Host jurisdiction," the jurisdiction in which the host facility is located;
(7) "Interstate combined wagering pool," a pari-mutuel pool established in one jurisdiction which is combined with comparable pari- mutuel pools from one or more racing jurisdictions if such pool is established for the purpose of establishing pay-off prices in the various jurisdictions;
(8) "Racing," horse and dog racing under the certificate system; and
(9) "Racing jurisdiction," a governmental jurisdiction responsible for the regulation of pari-mutuel racing in that jurisdiction.
Source: SL 1978, ch 302, § 2; SL 1985, ch 330, § 1; SL 1990, ch 339, § 1; SL 1991, ch 349, § 1; SL 1991, ch 350, § 1; SL 2004, ch 271, § 1.
42-7-56. Powers and responsibilities of commission on gaming.
The commission shall:
(1) Provide for racing under the certificate system;
(2) Perform quasi-legislative, quasi-judicial, and advisory functions excluding special budgetary functions as defined in § 1-32-1;
(3) Set racing dates;
(4) Promulgate rules pursuant to chapter 1-26 for effectively preventing the use of any substance, compound items, or combination thereof of any medicine, narcotic, stimulant, depressant, or anesthetic which could alter the normal performance of a racing animal unless specifically authorized by the commission;
(5) Supervise and check the making of pari-mutuel pools, pari-mutuel machines, and equipment used within the state;
(6) Promulgate rules pursuant to chapter 1-26 governing, restricting, or regulating bids on licensees' concessions and leases on equipment;
(7) Approve all proposed extensions, additions, or improvements to the buildings, stables, or tracts upon property owned or leased by a licensee;
(8) Exclude from race courses or other pari-mutuel facilities any person who violates the racing laws or any rule or order of the commission or is not eligible for licensing in another racing jurisdiction;
(9) Compel the production of all documents showing the receipts and disbursements of any licensee and determine the manner in which the financial records shall be kept;
(10) Investigate the operations of any licensee and cause the various places where the certificate system is operated to be visited and inspected at reasonable intervals for the purpose of satisfying itself that the rules are strictly complied with;
(11) Request appropriate state officials to perform inspections necessary for the health and safety of spectators, employees, participants, and animals that are lawfully on the race track;
(12) License all participants in the racing industry and require and obtain such information as the commission deems necessary from licensed applicants;
(13) Promulgate and enforce additional rules pursuant to chapter 1-26, and conditions under which all horse and dog races held shall be conducted and promulgate rules pursuant to chapter 1-26 to preserve the integrity and security of racing;
(14) License all facilities at which money is collected or disbursed under the certificate system;
(15) Promulgate rules pursuant to chapter 1-26 for the authorization, regulation, and auditing of account wagering on horse and dog racing authorized by this chapter;
(16) Promulgate rules pursuant to chapter 1-26 regarding the licensing and regulation of multi-jurisdictional totalizator hubs and the employees of such facilities; and
(17) Promulgate rules pursuant to chapter 1-26 to establish application fees and initial system audit fees that shall be used to conduct the background investigation of the applicant and the initial system audit of the multi-jurisdictional totalizator hub. If the commission or the executive secretary determines that the actual cost of the background investigation or initial system audit will exceed the amount of the fees paid, the commission may assess the actual cost of the background investigation or initial system audit, including the costs for personnel and travel, against the applicant.
Source: SDC 1939, § 53.0502; SL 1949, ch 213; SDCL, § 42-7-7; SL 1978, ch 302, § 9; SL 1985, ch 331, §§ 2, 5; SL 1986, ch 22, § 20; SL 1990, ch 339, § 2; SL 1991, ch 349, § 9; SL 2005, ch 229, § 1.
42-7-57. License required to hold race meeting or handle money under certificate system--Violation as misdemeanor.
No person may hold any racing meeting or collect or disburse any money under the certificate system without having first obtained and having in full force and effect a license issued by the commission. Any person who violates the provisions of this section is guilty of a Class 1 misdemeanor.
Source: SDC 1939, § 53.9902; SDCL, § 42-7-9; SL 1977, ch 190, § 622; SL 1978, ch 302, § 13; SL 1991, ch 349, § 10; SL 2000, ch 212, § 1.
42-7-58. Authority for racing under certificate system--Issuance of license.
The commission may permit and authorize the racing of horses and dogs under what is here designated the "certificate system." The commission may issue, on compliance of an applicant with the requirements of this chapter, a license to conduct races under the certificate system.
Source: SDC 1939, § 53.0503; SL 1949, ch 213; SL 1961, ch 265, § 1; SL 1963, ch 296, § 2; SDCL, § 42-7-8; SL 1969, ch 201; SL 1978, ch 302, § 12; SL 1991, ch 349, § 11.
42-7-58.1. Satellite facilities of horse or dog track licensees.
The commission may allow licensees approved by the commission to collect and disburse money under the certificate system at locations other than where licensed races are conducted if the satellite locations are more than fifty miles away from any pari-mutuel horse track or dog track licensed by the commission which is conducting a race meet at that time or if the pari-mutuel horse or dog track agrees to the operation of such a location within the fifty mile radius. The special racing fund shall receive one and one-half percent of the total amount contributed from the satellite location, and the special racing revolving fund in the Office of the State Treasurer and the South Dakota bred racing fund shall each receive one and one-half percent of the total amount contributed, with the remaining amount of the contribution withheld at the satellite location to be retained by the licensees. No other deductions may be made from the amount withheld by the licensee at the satellite location. Satellite facilities may receive contributions between the hours of 9:00 a.m. and 1:00 a.m.
Source: SL 1985, ch 331, § 1; SL 1987, ch 309; SL 1989, ch 367, § 1; SL 1991, ch 349, § 12; SL 1994, ch 328, § 1; SL 1995, ch 240, § 1; SL 2000, ch 212, § 2.
42-7-58.2. Wagering on televised races--Request and reciprocal agreement.
Upon written request of a licensee, the commission may approve wagering on races televised to South Dakota from another licensed racing jurisdiction. The request shall be made not less than seven days prior to the race to be televised. The request shall be accompanied by a signed reciprocal agreement between the racetrack originating the broadcast and the South Dakota racetrack receiving the broadcast.
Source: SL 1987, ch 310, § 1.
42-7-58.3. Approved simulcast races conducted on day assigned by commission.
All approved simulcast races shall be conducted at a licensed location on a day assigned by the commission.
Source: SL 1987, ch 310, § 2; SL 1988, ch 343, § 1.
42-7-58.4. Distribution of contributions.
All contributions received pursuant to §§ 42-7-58.2 to 42-7-58.5, inclusive, shall be distributed pursuant to § 42-7-58.1.
Source: SL 1987, ch 310, § 3.
42-7-58.5. Simulcast wagering in compliance with federal laws.
In addition to all state laws and applicable rules of the commission, simulcast wagering and interstate combined wagering pools shall be in compliance with the United States Code, Title 15, Section 3001, et seq., as in effect on December 31, 1990.
Source: SL 1987, ch 310, § 4; SL 1991, ch 350, § 7.
42-7-58.6. Eligibility for license to operate satellite races absent conducting live meet.
A licensee shall be eligible to receive a license under the certificate system to operate satellite races from either within or without the state without being obligated to conduct a live meet during the year.
Source: SL 1991, ch 349, § 41; SL 1995, ch 240, § 2.
42-7-58.7. Consideration of applications for licenses for satellite facilities and multi-jurisdictional totalizator hubs--Restrictions.
Notwithstanding any other provisions of this chapter, the commission may accept and consider applications at any time for operation of satellite facilities and multi-jurisdictional totalizator hubs to be operated under the certificate system and issue a license at any time for the operation of the facilities or hubs, if the facilities or hubs only allow wagering on horse and dog racing authorized by this chapter.
Source: SL 1994, ch 328, § 2; SL 2005, ch 229, § 2.
42-7-59. Filing of application for racing license or provision of simulcast signal--Contents.
The application for a license to hold or conduct a racing meeting or to provide a simulcast signal to a satellite facility shall be signed under oath and filed with the commission on or before a day prescribed in this chapter. The application shall state:
(1) The full name and address of the applicant. If the applicant for a license is a corporation, the names of all officers, directors, or stockholders of the corporation or any of its holding corporations shall be disclosed individually to the commission. The commission may require disclosure of any person or group of persons holding directly, indirectly, or beneficially an interest of any nature whatsoever in the corporation or any of its holding corporations, whether financial, administrative, policy-making, or supervising;
(2) The location of its racetrack or other facilities and whether the racetrack or other facilities are owned or leased. If leased, state the names and addresses of the lessors;
(3) A statement of the assets and liabilities of such applicant;
(4) A description of the qualifications and experience of the applicant, if an individual, or of its officers and directors, if a corporation, in the conduct of racing establishments in the five years preceding the filing of such application;
(5) The time, place, and number of days such racing meet is proposed to be conducted or such satellite facilities are proposed to be in operation;
(6) The type of racing to be conducted or simulcast;
(7) Such other information as the commission may require.
Any expenses incurred by the commission in regard to the investigation of an applicant shall be paid by the applicant.
Source: SDC 1939, § 53.0506; SL 1949, ch 213; SL 1961, ch 265, § 2; SL 1963, ch 296, § 3; SDCL, § 42-7-10; SL 1969, ch 201; SL 1978, ch 302, § 14; SL 1985, ch 331, § 3; SL 1990, ch 339, § 3; SL 1991, ch 349, § 13; SL 2000, ch 212, § 3.
42-7-60. Bond required of applicant for license--Waiver--Revocation or suspension of license on nonpayment of fees or taxes.
Every person applying for a license under §§ 42-7-58, 42-7-58.1, and 42-7-56(16) shall give bond payable to the State of South Dakota with good security to be approved by the commission. The bond shall be the amount which the commission determines is adequate to protect the amount normally due and owing to the commission in a sixty-day period or, in the case of new or altered conditions, based on the projected revenues and to guarantee proper payout of wagers.
The commission may waive the bond. In such event, the amount of taxes and fees due and owing the state shall be a lien on the license to operate. The lack of timely payment shall be cause for revocation or suspension of the license to operate.
Source: SDC 1939, § 53.0504; SDCL, § 42-7-11; SL 1978, ch 302, § 16; SL 1991, ch 349, § 14; SL 2000, ch 212, § 4; SL 2005, ch 229, § 3.
42-7-61. Application for new site submitted to county commissioners--Notice to county auditors--Provision for vote.
An application for a license to conduct the racing of horses or dogs on any new site which has not before July 1, 1967, been utilized for the conduct of racing horses or dogs, shall first be submitted, not less than ninety days prior to the next general election, to the board of county commissioners of the county where the site is to be located. The board of county commissioners shall notify the county auditor of each county which has any portion of its border within fifteen miles of the proposed site. Upon receipt of such notice, the county auditor of each county shall take the necessary action to provide that a vote shall be conducted at the next general election for the purpose of approving or disapproving such proposed site.
Source: SDC 1939, § 53.0506 as added by SL 1967, ch 244; SDCL, § 42-7-12; SL 1969, ch 201; SL 1978, ch 302, § 21.
42-7-62. Certification of votes on new racing site--Application forwarded to commission if approved by voters.
The county auditor of each county voting on the question provided for in § 42-7-61 shall submit a certified statement of the total votes cast for approval and disapproval to the board of county commissioners of the proposed-site county within sixty days after the general election. The board of county commissioners of the proposed-site county shall add the total votes cast for approval and disapproval from all such counties voting. If a majority of all votes cast approves such proposed site, the application for a license shall be further submitted by the county auditor of the proposed-site county together with a certificate indicating such approval to the commission for their consideration and action.
Source: SDC 1939, § 53.0506 as added by SL 1967, ch 244; SDCL, § 42-7-13; SL 1969, ch 201; SL 1978, ch 302, § 22; SL 1991, ch 349, § 15.
42-7-63. Fee for collecting and disbursing money--Disposition.
The commission may charge a fee for licensees to collect and disburse money under the certificate system commensurate with the amount of money which is collected daily, but no charge less than ten dollars nor in excess of one hundred dollars per day shall be made. The license fees shall be remitted to the state treasurer and placed in the special racing fund.
Source: SDC 1939, § 53.0509; SDCL, § 42-7-16; SL 1978, ch 302, § 19; SL 1991, ch 349, § 16; SL 2000, ch 212, § 5.
42-7-64. Contents of license for racing under certificate system--Days and hours of racing specified--License issued on basis of calendar year.
Each license issued under the certificate system shall describe the place and track or race course at which the licensee may hold such meetings. The authority conferred in any one license shall be limited to the calendar year for which it is issued. Every license shall specify the number of days the licensed meet shall continue, the hours during which racing is to be conducted and the number of races to be held per day. Races authorized under this chapter may be held only between the hours of 9:00 a.m. and 12:00 midnight. For the purpose of simulcasting or satellite facilities, a race meeting is considered to be the period of time a licensee starts its simulcast racing until it ends its simulcast racing. The commission shall issue a license on the basis of a calendar year.
Source: SDC 1939, §§ 53.0503, 53.0506; SL 1949, ch 213; SL 1961, ch 265, §§ 1, 2; SL 1963, ch 296, §§ 2, 3; SDCL, § 42-7-17; SL 1969, ch 201; SL 1970, ch 246; SL 1978, ch 302, § 17; SL 1989, ch 367, § 2; SL 1995, ch 240, § 3.
42-7-65. Transfer of license or stock ownership subject to approval--Standards applied.
All transfers of licenses to collect or disburse money under the certificate system or transfers of stock in a corporation holding a license shall be subject to prior review and approval by the commission, and the disclosure requirements as provided in § 42-7-59. The commission may approve minor transfers of stock without a hearing. The commission shall apply the standards provided in § 42-7-91 in determining whether it shall permit a transfer of stock.
Source: SL 1978, ch 302, § 18; SL 1991, ch 349, § 17; SL 2005, ch 229, § 4.
42-7-66. Investigation of stock ownership--Failure to disclose.
The commission may conduct investigations to ascertain if any capital stock of any corporate applicant is held for an undisclosed principal. Failure to disclose a principal is a material false statement.
Source: SL 1978, ch 302, § 18; SL 1991, ch 349, § 18.
42-7-67. Licensing of participants and track personnel--Maximum fee--Duration and privileges conferred--Fine, suspension or revocation.
The commission may grant, refuse, suspend, or withdraw licenses to every participant and employee engaged in racing under the certificate system as authorized in this chapter. The commission shall promulgate rules pursuant to chapter 1-26 to establish fees for licenses issued pursuant to this chapter. The maximum fee may not exceed fifty dollars. No license is valid for more than one calendar year, but a license issued pursuant to this chapter is valid at all race meetings in the state during the one year period. Licenses are the property of the state.
The commission, upon proof of violation of any provision of this chapter or any rule adopted by the commission, may fine, suspend, or revoke any license granted pursuant to this section.
Source: SL 1978, ch 302, § 38; SL 1990, ch 339, § 4; SL 1991, ch 349, § 19.
42-7-68. Allotment of racing days to applicants--Preference to past users--Annual scheduling--Procedure for simulcast or satellite facilities.
If an applicant is eligible to receive a license under the provisions of this chapter, the commission shall fix the racing days allotted to the applicant and issue a license for the holding of such meetings. Any racing association, agriculture, livestock, or fair exposition which has adopted and used regular or approximate regular dates for their events for the past two years shall be allotted those dates if such association or organization requests them.
Written applications for live racing dates for the next calendar year shall be submitted to the commission prior to October thirty-first of the preceding year. Allotment of the live racing dates for the next calendar year shall be made by the commission by December thirty-first of the preceding year.
The commission may grant additional live racing days to any currently licensed racing association upon a written application for additional live racing dates for the current calendar year.
Simulcasting or satellite facilities licensed to operate in this state shall also submit their projected racing dates prior to October thirty-first of the preceding year. However, the dates are subject to revision by the commission or the executive secretary at any time. The commission shall establish, by rules promulgated pursuant to chapter 1-26, the procedures for revising simulcast or satellite racing dates.
Source: SDC 1939, § 53.0506; SL 1949, ch 213; SL 1961, ch 265, § 2; SL 1963, ch 296, § 3; SDCL, § 42-2-17; SL 1969, ch 201; SL 1970, ch 246; SL 1978, ch 302, § 20; SL 1985, ch 330, § 2; SL 1989, ch 367, § 3; SL 1991, ch 349, § 20.
42-7-71. South Dakota-bred racing fund--Use of fund.
One-fourth of all money received by the state treasurer under this chapter from licensees operating horse racing tracks shall be placed in a special revenue fund to be known as the South Dakota-bred racing fund. The fund shall be used by the commission to encourage horse racing and the raising and breeding of horses in South Dakota and shall be used for the purpose of providing compensation to South Dakota-bred horses and providing funds to all horsetracks licensed in South Dakota.
Source: SDC 1939, § 53.0508 as enacted by SL 1963, ch 296, § 5; SDCL, § 42-7-26; SL 1978, ch 302, § 31; SL 1983, ch 301, § 1; SL 1990, ch 340, § 1; SL 1991, ch 349, § 22; SL 2005, ch 229, § 5.
42-7-73. Bonus paid to breeder of winner of South Dakota-bred race--Registration of qualifying horses.
A sum equal to five percent of the first money of every purse won by a "South Dakota-bred" horse shall be paid by the licensee conducting the horse racing meeting to the breeder of such animal. The commission shall by rule provide for the definition and registration of all "South Dakota-bred" horses.
Source: SDC 1939, § 53.0508 as enacted by SL 1963, ch 296, § 5; SDCL, § 42-7-31; SL 1978, ch 302, § 34; SL 1991, ch 349, § 23.
42-7-76. Contributions by win bettors--Minors prohibited from participating--Interest acquired--Certificates issued.
The certificate system shall expressly authorize the right of a licensee to collect and receive contributions of money from any person eighteen years or older toward the entry of any horse or dog in such race selected by such person to run first in the race, and the person contributing such money shall acquire an interest in the total money contributed on all horses and dogs in the race as first winner in proportion to the amount of money contributed by such person. The licensee shall receive such contributions of money and issue to the contributors thereof certificates on which shall be shown the number of the race, the amount contributed, and the number or name of the horse or dog selected by such person as first winner.
Source: SDC 1939, § 53.0503; SL 1949, ch 213; SL 1961, ch 265, § 1; SL 1963, ch 296, § 2; SDCL, § 42-7-19; SL 1969, ch 201; SL 1972, ch 230, § 1; SL 1974, ch 281, § 3; SL 1975, ch 266; SL 1978, ch 302, § 24; SL 1985, ch 331, § 4; SL 1987, ch 29, § 97.
42-7-76.1. Accepting of large bets by persons other than licensee as felony.
Any person who accepts bets in excess of two hundred dollars by any other persons, other than the licensee, on the outcome of any horse or dog race conducted pursuant to this chapter is guilty of a Class 6 felony.
Source: SL 1987, ch 311, § 1.
42-7-76.2. Accepting of medium bets as misdemeanor.
Any person who accepts bets of one hundred to two hundred dollars from any other persons on the outcome of any horse or dog race conducted pursuant to this chapter is guilty of a Class 1 misdemeanor.
Source: SL 1987, ch 311, § 2.
42-7-76.3. Accepting of small bets as misdemeanor.
Any person who accepts bets of less than one hundred dollars from any other persons on the outcome of any horse or dog race conducted pursuant to this chapter is guilty of a Class 2 misdemeanor.
Source: SL 1987, ch 311, § 3.
42-7-77. Place and show betting--Combinations of races for betting.
The licensee shall receive such contributions on horses or dogs selected to run second, third, or both, the method and procedure and the right of the licensee to be as specified in §§ 42-7-76, 42-7-78, and 42-7-79, with reference to selection of a horse or dog to run first. Any contributions collected or received under the provisions of this chapter may apply to one or more races or to any combination of races.
Source: SDC 1939, § 53.0503; SL 1949, ch 213; SL 1961, ch 265, § 1; SL 1963, ch 296, § 2; SDCL, § 42-7-19; SL 1969, ch 201; SL 1972, ch 230, § 1; SL 1974, ch 281, § 3; SL 1975, ch 266; SL 1978, ch 302, § 24.
42-7-78. Deduction from pari-mutuel pool on horse race--Payments to winners.
As each horse race is run the licensee shall be authorized to deduct from the total sum contributed on all horses as first winners eighteen and one-quarter percent and the balance remaining on hand after deducting such percentage shall be paid out to the holders of certificates on the winning horse equally in proportion as the amount contributed by such person bears to the total amount contributed toward the entry of all horses in such race to run first.
Source: SDC 1939, § 53.0503; SL 1949, ch 213; SL 1961, ch 265, § 1; SL 1963, ch 296, § 2; SDCL, § 42-7-19; SL 1969, ch 201; SL 1972, ch 230, § 1; SL 1974, ch 281, § 3; SL 1975, ch 266; SL 1978, ch 302, § 24.
42-7-78.1. Additional deduction from pools on horse races--Distribution.
In addition to the deductions authorized by § 42-7-78, a licensee of a horse track may deduct from the total sum contributed on horse races, except contributions on horse races in the win, place, or show pool, an additional three percent, which shall be retained by the licensee as additional compensation, to be used only by the licensee for capital improvements, increases in purses, or for such other purpose which has been approved by the commission. Such deduction is not subject to the provisions of § 42-7-85.
Source: SL 1981, ch 305, § 1; SL 1991, ch 349, § 24.
42-7-79. Deduction from pari-mutuel pool on dog race--Weekly remittances--Payments to winners.
As each dog race is run, the licensee shall deduct from the total sum contributed on all dogs as first winners eighteen and one-quarter percent of the amount thus contributed. This deduction shall be made from all sums contributed on dog races under the certificate system. Of this eighteen and one-quarter percent withheld, five percent of the total sum contributed shall be remitted on a weekly basis to the special racing fund, one-half of one percent of the total sum contributed shall be remitted on a weekly basis to the South Dakota-bred racing fund as provided in § 42-7-71, and one-half of one percent of the total sum contributed shall be remitted on a weekly basis to the special racing revolving fund as provided in § 42-7-79.1. The balance remaining on hand after deducting the eighteen and one-quarter percent shall be paid out to the holders of certificates on the winning dog equally in proportion as the amount contributed by such person bears to the total amount contributed toward the entry of all dogs in such race to run first. All funds not remitted to the state or paid to the South Dakota-bred racing fund or the special racing revolving fund provided for in § 42-7-79.1 or paid out to holders of certificates on winning dogs shall be retained by the track.
Source: SL 1949, ch 213; SDC Supp 1960, § 53.0503; SL 1961, ch 265, § 1; SL 1963, ch 296, § 2; SDCL, § 42-7-19; SL 1969, ch 201; SL 1972, ch 230, § 1; SL 1974, ch 281, §§ 3, 5; SL 1975, ch 266; SL 1976, ch 263; SL 1978, ch 302, § 24; SL 1989, ch 367, § 4; SL 1992, ch 303, § 1.
42-7-79.1. Additional deduction from some pools on dog races--Distribution.
In addition to the deductions authorized by § 42-7-79, the dog racing licensees shall deduct from the total sum contributed on dog races, except contributions on dog races in the win, place, and show pool, an additional three and three-quarters percent on the dollars contributed. The licensee will retain one-quarter of one percent for capital improvements on all amounts contributed and an additional three and one-half percent shall be retained by the licensee for discretionary use. The special racing revolving fund shall be in the Office of the State Treasurer to be disbursed by the commission to increase purses or for operations, or upon request, funds may be granted to a political subdivision of the state for unusual or unique law enforcement expenses incidental to having a race track or off-track site in that political subdivision. Funds in the South Dakota-bred racing fund and the special racing revolving fund shall be disbursed by the commission on warrants drawn by the state auditor on vouchers approved by the commission and such funds shall be disbursed without authority of appropriation acts.
Source: SL 1981, ch 305, § 2; SL 1985, ch 332, § 1; SL 1987, ch 312, § 1; SL 1989, ch 367, § 5; SL 1990, ch 340, § 2; SL 1991, ch 349, § 25.
42-7-81. Deduction of breakage from pari-mutuel payments--Licensee to retain breakage.
Before any payment is made to a person who has contributed to a pari-mutuel pool, the licensee shall deduct the odd cents by which the amount payable to such person exceeds a multiple of ten cents, which shall be known as breakage. The licensee conducting the live race meet or providing the simulcast signal to the location where the money is collected shall retain all breakage.
Source: SDC 1939, § 53.0503 as added by SL 1963, ch 296, § 2; SDCL, § 42-7-20; SL 1969, ch 201; SL 1970, ch 245, § 2; SL 1978, ch 302, § 26; SL 1992, ch 303, § 2; SL 2000, ch 212, § 8.
42-7-82. Time for claiming payments from pari-mutuel pool.
Claims for any part of a redistribution from a pari-mutuel pool shall be made within one year from the date on which the race was held or be forever barred. Any sums so barred shall become the property of the licensee conducting the meet or providing the simulcast signal from the host track to the satellite facility or the multi-jurisdictional totalizator hub at which the contribution was made.
Source: SDC 1939, § 53.0507 as added by SL 1963, ch 296, § 4; SDCL, § 42-7-22; SL 1978, ch 302, § 27; SL 2000, ch 212, § 9; SL 2005, ch 229, § 6.
42-7-84. Additional withholding by horse licensees.
The licensee of each horse racing track shall withhold and retain at the end of each week of racing, as additional compensation to the licensee, one and one-quarter percent of the total sum contributed.
Source: SL 1972, ch 230, § 2; SDCL Supp, § 42-7-23; SL 1974, ch 281, §§ 2, 5; SL 1976, ch 263; SL 1977, ch 338; SL 1978, ch 302, § 28; SL 1982, ch 295; SL 1983, ch 302, § 2; SL 1985, ch 332, § 2; SL 1989, ch 367, § 7.
42-7-85. Portion of horse-racing pari-mutuel pool paid to state.
A license to conduct racing under the certificate system shall further expressly provide that the licensee of any horse racing track shall remit to the state treasurer at the end of each week of racing, four-seventeenths of the total of all money retained as compensation by the licensee as authorized by this chapter which is in excess of the one and one-quarter percent retained by the licensee or remitted to the county treasurer wherein the site is located except breakage.
Source: SDC 1939, § 53.0506; SL 1949, ch 213; SL 1961, ch 265, § 2; SL 1963, ch 296, § 3; SDCL, § 42-7-23; SL 1969, ch 201; SL 1972, ch 230, § 2; SL 1974, ch 281, §§ 2, 5; SL 1976, ch 263; SL 1977, ch 338; SL 1978, ch 302, § 28.
42-7-89. Payments to state in lieu of other taxes.
The payments required in §§ 42-7-63, 42-7-79, 42-7-85, and 42-7-102 to be made by the licensee to the state treasurer are in lieu of all other or further excise or occupational taxes to the state or any county, municipality, or other political subdivision.
Source: SDC 1939, § 53.0510; SDCL, § 42-7-24; SL 1978, ch 302, § 30; SL 1989, ch 367, § 11A; SL 2005, ch 229, § 7; SL 2021, ch 49, § 16.
42-7-90. Audit of licensee by auditor-general--Reimbursement of expense.
The auditor-general shall, when requested by the commission, executive board of the Legislative Research Council, or the Governor, conduct audits and investigate the operations of any licensee. The commission shall reimburse the Department of Legislative Audit for all services rendered.
Source: SDC 1939, § 53.0505; SL 1955, ch 229, § 2; SL 1957, ch 273, § 2; SDCL, § 42-7-25; SL 1978, ch 302, § 11; SL 1991, ch 349, § 26.
42-7-91. Grounds for refusal, suspension, or withdrawal of license.
The commission may refuse, suspend, or withdraw licenses under the certificate system and privileges granted by it or terminate license privileges for just cause. Those things constituting just cause are:
(1) Any action or attempted action by a person contrary to the provisions of this chapter and law;
(2) Corrupt practices, which include but are not limited to:
(a) Prearranging or attempting to prearrange the order of finish of a race;
(b) Failing to properly pay the winnings to a bettor or to properly return change to a bettor upon purchasing a ticket;
(c) Falsifying or manipulating the odds on any entrant in a race;
(3) Any violation of the rules of racing adopted by the commission;
(4) Falsification or misstatement of fact in an application for any license issued pursuant to this chapter;
(5) Material false statement to a racing official or to the commission;
(6) Willful disobedience of a commission order or of a lawful order of a racing official other than a commissioner;
(7) Continued failure or inability to meet financial obligations connected with the licensee's business, occupation or profession performed or engaged on the track grounds;
(8) Failure or inability to maintain properly a race track;
(9) The refusal to license, or the suspension, or the revocation of a racing license by another racing jurisdiction.
Source: SL 1978, ch 302, § 15; SL 1990, ch 339, § 5; SL 1991, ch 349, § 27; SL 2005, ch 229, § 8.
42-7-92. Legal representation of commission--Prosecution of violations.
The attorney general shall represent the state in all hearings before the commission concerning racing and shall prosecute all criminal proceedings arising from violations of this chapter. The commission shall reimburse the attorney general for all services rendered. The commission may employ private counsel for rule promulgation and to ensure that all its hearings are conducted fairly.
Source: SL 1978, ch 302, § 10; SL 1991, ch 349, § 28.
42-7-93. Fine, revocation, or suspension of license after notice and hearing--Waiting period for new license after revocation.
The commission, upon proof of violation by a licensee, or his agents or employees, of any provision of this chapter or any rule promulgated by the commission, may, pursuant to chapter 1-26, after reasonable notice to the licensee and after giving the licensee an opportunity to be heard, fine him or revoke or suspend his license. In the event of revocation, the licensee is not eligible to apply for another license within twelve months from the date of the revocation.
Source: SDC 1939, § 53.0511; SDCL, § 42-7-35; SL 1978, ch 302, § 40; SL 1985, ch 330, § 3; SL 1990, ch 339, § 6; SL 1991, ch 349, § 29.
42-7-94. Decisions and orders in writing--Service on person affected.
Every decision or order of the commission shall be made in writing and filed with the executive secretary and preserved as a permanent record of the commission. Such decisions shall be signed by the chairman and attested by the executive secretary and dated. No decision or order of the commission shall be effective as to any person until a certified copy has been personally served or sent by certified or registered mail to such person.
Source: SDC 1939, § 53.0512; SDCL, § 42-7-36; SL 1978, ch 302, § 39; SL 1991, ch 24, § 16; SL 1991, ch 349, § 30.
42-7-95. Judicial review of commission actions--Cost bond.
If any licensee is dissatisfied with the decision of the commission, he may have such decision reviewed by the circuit court in the manner provided by chapter 1-26, by furnishing a bond to the commission to be approved by the clerk of the court to which the appeal is taken, in the penal sum of two hundred fifty dollars conditioned for the payment of the costs.
Source: SDC 1939, § 53.0513; SDCL, § 42-7-37; SL 1978, ch 302, § 43; SL 1991, ch 349, § 31.
42-7-96. Suspensions and fines by racing judges or stewards--Notice and hearing--Appeals--Reference to commission.
The commission shall promulgate rules permitting a panel of three racing judges or stewards to impose suspensions not to exceed four horse racing days or twelve dog racing days and any intervening calendar days and a fine not to exceed five hundred dollars on persons violating this chapter or the rules of the commission after notice and hearing pursuant to chapter 1-26.
An appeal from the order of the racing judges or stewards shall be made to the commission only and not to the circuit court and shall operate as a stay of all proceedings under such order until the commission renders its decision which shall be final agency action.
If the racing judges or stewards find that a penalty which exceeds their limits to impose should be rendered, they may not impose any penalty and shall forward their findings and conclusions and recommendations to the commission for final agency action.
If a matter is not appealed to the commission by the person upon whom a penalty was imposed by the stewards or judges within seven days of the date of service of the judges' or stewards' order, the decision and penalty of the judges or stewards shall be final in that the appeal time to the commission has lapsed.
Source: SL 1977, ch 337, § 1; SDCL Supp, § 42-7-35.1; SL 1978, ch 302, § 41; SL 1985, ch 330, § 4.
42-7-97.1. Suspensions or revocations exceeding racing season.
If a suspension or revocation of racing privileges is levied by the commission or by a panel of three racing judges or stewards the horse racing days or dog racing days that the license is suspended for or revoked for shall be served in the next racing season if there are not sufficient horse racing days or dog racing days in the season when the penalty is carried out.
Source: SL 1985, ch 330, § 6; SL 1991, ch 349, § 32.
42-7-98. Receipts retained in special racing fund.
All moneys received by the state treasurer except for those moneys in the South Dakota-bred racing fund and the racing revolving fund shall be retained by the treasurer in a special racing fund.
Source: SDC 1939, § 53.0507; SL 1949, ch 213; SL 1955, ch 229, § 3; SL 1957, ch 273, § 3; SL 1959, ch 284; SL 1963, ch 296, § 4; SDCL, § 42-7-33; SL 1978, ch 302, § 36; SL 1991, ch 349, § 33.
42-7-98.1. Transfer of revenue in special racing fund--Procedure.
The state treasurer shall transfer the first seventy-five thousand dollars received in a special racing fund to the special racing revolving fund and any amounts received during any year in excess of seventy-five thousand dollars shall be transferred as follows:
(1) One-half of the remaining revenue shall be transferred to the South Dakota-bred racing fund;
(2) The other one-half of the remaining revenue shall be transferred to the special racing revolving fund.
All transfers by the state treasurer except for the transfer on April 1, 1991, shall be made on a monthly basis on the first day of the month or as soon thereafter as is reasonably possible.
Source: SL 1991, ch 349, § 37.
42-7-101. Devices or expedients to increase horse's speed prohibited.
No person may have in his possession an electrical device, mechanical device, or other expedient designed to increase the speed of a horse other than an ordinary whip at anytime on the grounds of a race track licensed by the commission. A violation of this section is a Class 1 misdemeanor. A subsequent violation of this section is a Class 6 felony.
Source: SL 1985, ch 330, § 5; SL 1991, ch 349, § 36.
42-7-102. Interstate combined wagering pool--Take-out of host jurisdiction or facility--Percentage to state.
Notwithstanding any other provision of this chapter, the commission may authorize any licensee to participate in an interstate combined wagering pool with one or more other racing jurisdictions. If a licensee participates in an interstate combined wagering pool, the licensee may adopt the take-out of the host jurisdiction or facility. The State of South Dakota shall receive one and one-half percent of the total contributed in this state, and the special racing revolving fund and the South Dakota-bred racing fund shall each receive one and one-half percent of the total contributed in this state. However, if the licensee participating in the interstate combined wagering pool is a multi-jurisdictional totalizator hub, the total portion to be received by the state shall be one-fourth of one percent of the total contributed through the hub, of which the special racing revolving fund shall receive one-fifth of one percent of the total contributed through the hub and the South Dakota-bred racing fund shall receive one-twentieth of one percent of the total contributed through the hub. Any such interstate combined wagering pool may only apply to horse and dog racing authorized by this chapter.
Source: SL 1991, ch 350, § 2; SL 1995, ch 241; SL 2005, ch 229, § 9.
42-7-103. Combining pari-mutuel pools to establish interstate combined wagering pool.
The commission may permit a licensee to use one or more of its races for an interstate combined wagering pool at locations outside its jurisdiction, and may allow pari-mutuel pools in other states to be combined with pari-mutuel pools in its jurisdiction for the purpose of establishing an interstate combined wagering pool.
Source: SL 1991, ch 350, § 3.
42-7-104. Physical location as place of business.
No licensee may be considered to be doing business in any jurisdiction other than the jurisdiction in which the licensee is physically located if the licensee participates in an interstate combined wagering pool.
Source: SL 1991, ch 350, § 4.
42-7-105. Tax of wagers in interstate combined wagering pool.
Taxes or commissions imposed on pari-mutuel wagering may not be imposed on any amounts wagered in an interstate combined wagering pool other than amounts wagered within this state.
Source: SL 1991, ch 350, § 5.
42-7-106. Breakage calculation for interstate combined wagering pool.
The commission may negotiate the breakage calculation for interstate combined wagering pools and the distribution of breakage among the participating jurisdictions.
Source: SL 1991, ch 350, § 6.
CHAPTER 42-7A
STATE LOTTERY
42-7A-1 Definitions.
42-7A-2 South Dakota Lottery established--Administration by executive director--Overall control and operation of games.
42-7A-3 Executive director--Salary--Employment of personnel.
42-7A-4 Functions of executive director.
42-7A-5 Competitive bidding required before entering into contracts.
42-7A-6 Investigation of vendors.
42-7A-7 Subpoenas--Order to comply--Punishment by contempt.
42-7A-8 Additional functions of executive director.
42-7A-9 Lottery expenses and prizes to be paid from lottery funds--General funds not to be used or obligated--Exception.
42-7A-10 Selection of lottery retailers.
42-7A-11 Lottery retailers application fee--Annual renewal of contracts--Contracts not transferable or assignable.
42-7A-12 Issuance of lottery retailer certificate--Display--Sales only at location on certificate.
42-7A-13 Qualifications of lottery retailer.
42-7A-14 Persons ineligible to be licensed by the lottery--Criminal background investigation of applicants, licensees, vendors, and employees.
42-7A-15 Partnership as lottery retailer or video lottery machine operator.
42-7A-16 Association or corporation as lottery retailer or video lottery machine operator.
42-7A-17 Lottery Commission created--Appointment of members--Term of office--Qualifications--Chair.
42-7A-18 Meetings--Quorum.
42-7A-19 Commission to establish lottery operation policy--Approval of major procurements.
42-7A-19.1 Sale of lottery products within exterior boundaries of Indian reservations.
42-7A-20 Mileage and per diem paid commission members--Exception.
42-7A-21 Rules and regulations.
42-7A-22 Lottery operating fund--Continuous appropriation--Informational budget--Disbursements.
42-7A-23 Amount from sale of tickets allocated for payment of prizes--Means of payment for prizes.
42-7A-24 Transfer of net proceeds to state funds.
42-7A-24.1 Acceptance and expenditure of funds obtained from federal sources, gifts, contributions and other sources.
42-7A-24.2 Payment of expenditures.
42-7A-25 Employment and direction of investigative personnel.
42-7A-26 Appointment of assistant attorney general to assist in enforcement.
42-7A-27 Commission members or lottery employees not to have interest in lottery contracts or to accept gifts or loans from persons or businesses contracting with lottery--Violation as misdemeanor.
42-7A-28 Persons contracting to supply materials, tickets or consulting services not to give gifts or loans to commission members or lottery employees--Violation as misdemeanor.
42-7A-29 Removal from office for violation of conflict of interest provisions--Application of other conflict of interest statutes.
42-7A-30 Counterfeiting lottery tickets Class 6 felony.
42-7A-31 Sale of tickets at price greater than that fixed by rules prohibited--Sale by authorized retailer only--Violation.
42-7A-32 Sale of ticket to person under eighteen prohibited--Violation--Gift of ticket to person under eighteen permitted--Prize paid to parent or guardian.
42-7A-33 Purchase of ticket or payment of prize to certain persons prohibited--Exceptions.
42-7A-34 Prize paid to holder of winning ticket--Deceased winner's prize paid to representative--Right to prize nonassignable--Prizes subject to taxation--Disposition of unclaimed prize--Liability of lottery after payment of prize.
42-7A-35 42-7A-35. Repealed by SL 1989, ch 371, § 2
42-7A-36 Certain mechanical or electronic devices prohibited--Violation as felony--Devices as nuisances.
42-7A-37 Requirements for licensed video lottery machines.
42-7A-37.1 Restrictions on licensed establishment.
42-7A-38 Limit on amount played and awards given.
42-7A-39 Display of license for video lottery machine--Confiscation--Violation as felony.
42-7A-40 Examination of video lottery machines--Costs paid by manufacturer--Contract for examination.
42-7A-41 Video lottery machine manufacturer, distributor, operator, and establishment licenses required--Fees.
42-7A-41.1 Video lottery operating fund established.
42-7A-41.2 Posting video lottery odds required.
42-7A-42 Multiple types of licenses prohibited.
42-7A-43 Background investigation of video lottery licensees--Eligibility requirements.
42-7A-44 Rules for placement of video lottery machines--Number limited--Placement in bar or lounge with on-sale license.
42-7A-44.1 Denial or revocation of license for noncompliance.
42-7A-44.2 On-sale license--Municipal event center or recreation facility--Placement of video lottery machines prohibited.
42-7A-45 Video lottery machine income--Remittance to state--False report as felony--Records--Penalty.
42-7A-46 Tampering with video lottery machine as misdemeanor.
42-7A-47 Manipulating outcome, payoff, or operation of video lottery machine as felony.
42-7A-48 Age limit and legal hours of operation for video lottery machines.
42-7A-49 Lottery products on Indian reservations authorized.
42-7A-50 Confidentiality of lottery records.
42-7A-50.1 Prize winner personal information--Consent to make public.
42-7A-51 Lottery setoff program established--Computerized file of persons owing state.
42-7A-52 Debt setoff from prize due--Notice of right to appeal--Time limitation--Transfer of setoff amount to agency.
42-7A-53 Commission, employees, and lottery discharged from liability.
42-7A-54 Apportionment of prize among agencies--Priority of child support payments.
42-7A-55 Collection of remainder of debt.
42-7A-56 Public policy declared.
42-7A-57 Approval or disapproval of license applications.
42-7A-58 Reapplication for license after denial or revocation.
42-7A-59 False statements in license applications--Perjury.
42-7A-60 Executive or closed meetings permitted.
42-7A-61 42-7A-61. Repealed by SL 2013, ch 219, § 10.
42-7A-62 Collection of fee--Deposit in general fund.
42-7A-63 State's percentage of net machine income--Deposit into general fund and video lottery operating fund.
42-7A-64 Additional criteria for on-sale alcoholic beverage licensees in video lottery licensed establishments.
42-7A-1. Definitions.
Terms used in this chapter mean:
(1) "Associated equipment," any proprietary device, machine, or part used in the manufacture or maintenance of a video lottery machine, including integrated circuit chips, printed wired assembly, printed wired boards, printing mechanisms, video display monitors, and metering devices;
(2) "Commission," the South Dakota Lottery Commission;
(3) "Credit," one, five, ten, or twenty-five cents;
(4) "Executive director," the executive director of the South Dakota Lottery;
(5) "Instant lottery," a game that offers preprinted tickets that indicate immediately or in a grand prize drawing whether the player has won a prize;
(6) "Licensed establishment," a bar or lounge owned or managed by an individual, partnership, corporation, or association licensed to sell alcoholic beverages for consumption upon the premises where sold;
(7) "Lottery" or "state lottery," any lottery operated pursuant to this chapter;
(8) "Lottery retailer," any person with whom the South Dakota Lottery has contracted to sell lottery tickets to the public;
(9) "Lottery vendor" or "vendor," any person who has entered into a major procurement contract with the South Dakota Lottery;
(10) "Major procurement," any contract with any vendor directly involved in providing facilities, equipment, tickets, and services unique to the lottery, but not including materials, supplies, equipment, and services common to the ordinary operations of state agencies;
(11) "Net machine income," money put into a video lottery machine minus credits paid out in cash;
(12) "On-line lottery," a game linked to a central computer via a telecommunications network in which the player selects a specified group of numbers or symbols out of a predetermined range of numbers or symbols as approved by the commission;
(13) "South Dakota Lottery," the state agency created by this chapter to operate a lottery pursuant to this chapter;
(14) "Ticket," any tangible evidence issued or authorized by the South Dakota Lottery to prove participation in an instant, on-line, or video lottery game;
(14A) "Video lottery," any video game of chance played on video lottery machines;
(15) "Video lottery machine distributor," any individual, entity, partnership, corporation, or association that distributes or sells video lottery machines or associated equipment in this state;
(16) "Video lottery machine manufacturer," any individual, entity, partnership, corporation, or association that assembles or produces video lottery machines or associated equipment for sale or use in this state;
(17) "Video lottery machine operator," any individual, entity, partnership, corporation, or association that places video lottery machines or associated equipment for public use in this state; and
(18) "Video lottery machines," or "machine," any electronic video game machine authorized by the commission that, upon insertion of cash or ticket voucher, is available to play or simulate the play of a video game, including video poker, keno, and blackjack, utilizing a video display and microprocessors in which, by chance, the player may receive free games or credits that can be redeemed for cash. The term does not include a machine that directly dispenses coins, cash, or tokens.
Source: SL 1987, ch 313, § 1; SL 1989, ch 368, § 1; SL 1990, ch 341, § 1; SL 1991, ch 351, § 1; SL 1992, ch 304, § 1; SL 1995, ch 242; SL 2013, ch 219, § 1; SL 2022, ch 161, § 1.
42-7A-2. South Dakota Lottery established--Administration by executive director--Overall control and operation of games.
There is hereby established in the Department of Revenue a division to be called the South Dakota Lottery under the direction of the South Dakota Lottery Commission. Under the supervision of the commission, an executive director shall administer the state lottery as provided in this chapter. In all decisions, the executive director and commission shall take into account the particularly sensitive nature of the lottery, and shall act to promote and ensure the integrity, security, honesty, and fairness of its operation and administration. The overall management of the state lottery and control over the operation of its games shall rest solely with the South Dakota Lottery.
Source: SL 1987, ch 313, § 2; SL 1993, ch 317, § 2; SL 2003, ch 272 (Ex. Ord. 03-1), § 115; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
42-7A-3. Executive director--Salary--Employment of personnel.
The executive director shall be the secretary of revenue or his designee. The executive director shall be exempt from the South Dakota Career Service Act and shall receive an annual salary fixed by the Governor. The executive director may employ such persons as may be necessary to operate the South Dakota Lottery.
Source: SL 1987, ch 313, § 3; SL 1989, ch 368, § 2; SL 2003, ch 272 (Ex. Ord. 03-1), § 116; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
42-7A-4. Functions of executive director.
The executive director may, subject to policy established by the commission:
(1) Supervise and administer the operation of the state lottery in accordance with the provisions of this chapter;
(2) Employ all other employees of the South Dakota Lottery;
(3) Enter into contracts for promotional services; annuities or other methods deemed appropriate for the payment of prizes; data processing and other technical products, equipment and services; and facilities as needed to operate the South Dakota Lottery including, without limitation, tickets and other services involved in major procurements;
(4) Contract with and license persons for the sale of lottery tickets and the offering of video lottery games to the public, as provided by this chapter and rules adopted pursuant thereto;
(5) Make demographic studies of lottery players and studies of reactions of citizens to existing and potential features of the lottery;
(6) Require lottery retailers and persons licensed pursuant to this chapter to furnish proof of financial stability or furnish surety in an amount based upon the expected volume of sales of lottery tickets or net machine income;
(7) Provide for secure facilities to house the South Dakota Lottery;
(8) Provide for separate, distinct, and secure data processing facilities to be used for the reliable operation of the state lottery;
(9) Examine, or cause to be examined by any agent or representative designated by the executive director, any books, papers, records, or memoranda of any lottery retailer or person licensed pursuant to this chapter for the purpose of ascertaining compliance with any provision of this chapter or any rule adopted pursuant to this chapter;
(10) Issue subpoenas to compel access to or for the production of such books, papers, records, or memoranda in the custody or control of any lottery retailer or person licensed pursuant to this chapter, or to compel the appearance of any of their employees, for the purpose of ascertaining compliance with any provision of this chapter or any rule adopted pursuant to this chapter;
(11) Administer oaths and take depositions to the same extent and subject to the same limitations as would apply if the deposition was in aid of a civil action in the circuit court;
(11A) The lottery commission shall operate a video lottery undertaken pursuant to this chapter and may not contract or assign this responsibility to any other person;
(12) Impose civil fines not to exceed ten thousand dollars per violation and fifteen thousand dollars for any subsequent violation of any provision of this chapter or any rule adopted pursuant to this chapter; and
(13) Enter into written agreements or compacts with one or more other states for the operation, marketing and promotion of a joint lottery or joint lottery games.
Source: SL 1987, ch 313, § 4; SL 1989, ch 368, § 3; SL 1990, ch 341, § 2.
42-7A-5. Competitive bidding required before entering into contracts.
If entering into any contract pursuant to subdivision 42-7A-4(3), the executive director shall utilize an open and competitive bid process which reflects the best interest of the State of South Dakota. Any such contract is exempt from the provisions of chapters 5-18A and 5-18D. The executive director shall consider all relevant factors including security, competence, experience, timely performance, and maximization of net revenues to the state. Any contract entered into pursuant to subdivision 42-7A-4(3) for major procurements are subject to the approval of the commission and are subject to the provisions of chapters 5-18A and 5-18D.
Source: SL 1987, ch 313, § 5; SL 1990, ch 341, § 3; SL 2011, ch 2, § 143.
42-7A-6. Investigation of vendors.
Before a contract for a major procurement is awarded, the executive director shall conduct a thorough background investigation of the vendor, any parent or subsidiary corporation of the vendor, all shareholders of five percent or more interest in the vendor or parent or subsidiary corporation of the vendor, and all officers and directors of the vendor or parent or subsidiary corporation of the vendor to whom the contract is to be awarded. The vendor shall submit appropriate investigation authorizations to facilitate this investigation. The executive director may require any additional information from the vendor that is considered appropriate to preserve the integrity and security of the lottery.
Source: SL 1987, ch 313, § 6.
42-7A-7. Subpoenas--Order to comply--Punishment by contempt.
Subpoenas issued under the provisions of subdivision 42-7A-4(10) may be served upon individuals, entities, or corporations in the manner provided in chapter 1-26 for the service of process by any officer authorized to serve subpoenas in civil actions or by the executive director or an agent or representative designated by the executive director. In the case of the refusal of any person to comply with any such subpoena, the executive director may make application to the circuit court of the county where such books, papers, records, memoranda, or person is located for an order to comply. Failure to obey such order to comply issued by a circuit court may be punished by the court as contempt.
Source: SL 1987, ch 313, § 7; SL 2013, ch 219, § 2.
42-7A-8. Additional functions of executive director.
The executive director shall:
(1) Make and keep books and records which accurately and fairly reflect each day's transactions, including the distribution and sale of tickets, receipt of funds, prize claims, prize disbursements, or prizes liable to be paid, expenses and other financial transactions of the South Dakota Lottery necessary so as to insure accountability;
(2) Make annual financial reports to the commission, the Governor, the state treasurer, the attorney general, and the Legislature. Such reports shall be based upon generally accepted accounting principles and include a full and complete statement of the lottery's financial position and operations;
(3) Make available for inspection by the commission, upon request, all books, records, files, and other information and documents of the South Dakota Lottery;
(4) Have an annual audit of all accounts and transactions of the South Dakota Lottery pursuant to chapter 4-11. The audit report shall be presented to the commission, the Governor, the state treasurer, and the Legislature;
(5) Contract with an agency of state government or an independent firm experienced in security procedures to periodically conduct a comprehensive study and evaluation of all aspects of security in the operation of the South Dakota Lottery;
(6) Prepare and submit budgets and proposals for the operation of the South Dakota Lottery;
(7) Operate the state lottery so that after the initial funding, it is self-sustaining and self-funded;
(8) Include in printed promotional materials and information published for each lottery game, a list of the odds of winning such game, based upon the number of tickets projected to be sold; and
(9) Make provision for the timely and efficient transfer of funds due from lottery retailers and persons licensed pursuant to this chapter to the state general fund.
Source: SL 1987, ch 313, § 8; SL 1989, ch 368, § 4; SL 2013, ch 219, § 3.
42-7A-9. Lottery expenses and prizes to be paid from lottery funds--General funds not to be used or obligated--Exception.
No claim for the payment of an expense of the lottery or the payment of a lottery prize may be made unless it is against the lottery operating fund or money collected from the sale of lottery tickets. Except for the initial start-up funding to the lottery, the general funds of the state may not be used or obligated to pay the expenses of the South Dakota Lottery or prizes of the lottery.
Source: SL 1987, ch 313, § 9.
42-7A-10. Selection of lottery retailers.
The executive director shall select as lottery retailers such persons as he deems best able to serve the public convenience and promote the sale of tickets. In the selection of lottery retailers, the executive director shall consider factors such as financial responsibility, security of the applicant's place of business or activity, accessibility of the applicant's place of business or activity, integrity, reputation, sufficiency of existing lottery retailers to serve the public convenience, volume of expected sales, and such other factors as the executive director may deem appropriate. Any person lawfully engaged in nongovernmental business on state property may be selected as lottery retailers.
Source: SL 1987, ch 313, § 10.
42-7A-11. Lottery retailers application fee--Annual renewal of contracts--Contracts not transferable or assignable.
The executive director may charge an application fee to persons applying to become lottery retailers. All lottery retailer contracts awarded by the South Dakota Lottery under this chapter are renewable annually after issuance unless sooner canceled or terminated. No lottery retailer contract awarded under this chapter is transferable or assignable.
Source: SL 1987, ch 313, § 11.
42-7A-12. Issuance of lottery retailer certificate--Display--Sales only at location on certificate.
Each lottery retailer shall be issued a lottery retailer certificate which shall be conspicuously displayed at the place where the lottery retailer is authorized to sell lottery tickets. Lottery tickets may only be sold by the lottery retailer at the location stated on the lottery retailer certificate.
Source: SL 1987, ch 313, § 12.
42-7A-13. Qualifications of lottery retailer.
To be selected as a lottery retailer or video lottery machine operator, a natural person acting as a sole proprietor shall:
(1) Be at least eighteen years of age;
(2) Be of good character and reputation;
(3) Have sufficient financial resources to support the activities required to sell lottery tickets or place and service video lottery machines; and
(4) Be current in payment of all taxes, interest, and penalties owed to the State of South Dakota, excluding items under formal dispute or appeal pursuant to applicable statutes.
A lottery retailer or video lottery machine operator may not be a lottery vendor or an employee or agent of any lottery vendor doing business with the South Dakota Lottery.
Source: SL 1987, ch 313, § 13; SL 1989, ch 368, § 5; SL 1993, ch 317, § 5.
42-7A-14. Persons ineligible to be licensed by the lottery--Criminal background investigation of applicants, licensees, vendors, and employees.
No natural person may be licensed by the lottery or involved in lottery activities under this chapter, who:
(1) Has been convicted of a felony in this or any other jurisdiction, unless at least ten years have passed since satisfactory completion of the sentence or probation imposed by the court in each felony conviction;
(2) Has been found to have violated the provisions of this chapter or any rule adopted pursuant to this chapter;
(3) Has been found to have a background, including a criminal record, reputation, habits, social or business associations, or prior activities that pose a threat to the public interests of the state or to the security and integrity of the lottery; create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gaming; or present questionable business practices and financial arrangements incidental to the conduct of lottery activities;
(4) Is a member of the immediate family, as defined in § 42-7A-33, of an employee of the South Dakota Lottery or of a member of the South Dakota Lottery Commission; or
(5) Has knowingly made a false statement of material fact to the South Dakota Lottery.
Each applicant, licensee, vendor, or employee of the South Dakota Lottery shall submit to a state and federal criminal background investigation by means of fingerprint checks by the Division of Criminal Investigation and the Federal Bureau of Investigation. The executive director shall submit completed fingerprint cards to the Division of Criminal Investigation for the applicant, licensee, vendor, or employee.
The South Dakota Lottery may pay any fee charged for the cost of fingerprinting or the criminal background investigation for any person whose employment is subject to the requirements of this section. Each applicant, licensee, or vendor is responsible for any fee charged for the cost of fingerprinting or the criminal background investigation.
Source: SL 1987, ch 313, § 14; SL 1989, ch 368, § 6; SL 1993, ch 317, § 6; SL 2017, ch 186, § 1.
42-7A-15. Partnership as lottery retailer or video lottery machine operator.
For a partnership to be selected as a lottery retailer or video lottery machine operator, the partnership shall meet the requirements of subdivisions 42-7A-13(3) and (4), and each partner thereof shall meet the requirements of subdivisions 42-7A-13(1) and (2) and subdivisions 42-7A-14(1) to (5), inclusive.
Source: SL 1987, ch 313, § 15; SL 1989, ch 368, § 7.
42-7A-16. Association or corporation as lottery retailer or video lottery machine operator.
For an association or corporation to be selected as a lottery retailer or video lottery machine operator, the association or corporation shall meet the requirements of subdivisions 42-7A-13(3) and (4), and each officer and director and each stockholder who owns five percent or more of the stock of such association or corporation shall meet the requirements of subdivisions 42-7A-13(1) and (2) and subdivisions 42-7A-14(1) to (5), inclusive.
Source: SL 1987, ch 313, § 16; SL 1989, ch 368, § 8; SL 1993, ch 317, § 7.
42-7A-17. Lottery Commission created--Appointment of members--Term of office--Qualifications--Chair.
There is created the South Dakota Lottery Commission, which is composed of five members appointed by the Governor and confirmed by the senate. The term of office is three years, expiring on January first with no more than two appointments expiring in any one year. No member may be appointed to more than two consecutive terms. Each member of the commission shall be a citizen of the United States and a resident of this state, not all of whom may be of the same political party. A chair of the commission shall be chosen annually from the membership of the commission by a majority of commission members at the first meeting of the commission each fiscal year.
Source: SL 1987, ch 313, § 17; SL 1989, ch 370; SL 2020, ch 189, § 1.
42-7A-18. Meetings--Quorum.
The commission shall meet at least once a quarter and such additional meetings as the chair deems desirable. Special meetings may be called by the chair upon the written request of the executive director or any three members of the commission. All meetings shall be held at a place and time fixed by the chair. A majority of the duly appointed members of the commission constitutes a quorum to transact business.
Source: SL 1987, ch 313, § 18; SL 1996, ch 256.
42-7A-19. Commission to establish lottery operation policy--Approval of major procurements.
The commission shall establish policy for the operation of the state lottery and shall consult with and direct the executive director relating to the operation of the state lottery. Major procurements, as defined in subdivision 42-7A-4(3), recommended by the executive director, are subject to the approval of the commission.
Source: SL 1987, ch 313, § 19.
42-7A-19.1. Sale of lottery products within exterior boundaries of Indian reservations.
The commission may provide for the sale of lottery products within the exterior boundaries of any Indian reservation within this state. The commission may pay to the respective tribal government an amount not to exceed fifty percent of the state's net proceeds from lottery products sold within the exterior boundaries of any reservation. The commission shall consider any agreement or potential agreement made pursuant to the authority contained in the Federal Indian Gaming Act together with any other relevant factors, including tribal member and nonmember mix, in determining payment to be made to a tribe. The commission shall by rule, promulgated pursuant to chapter 1-26, establish the specific criteria to determine the amount of net proceeds distributed to each tribal government. Each reservation may only receive revenue pursuant to this chapter from lottery products sold within the exterior boundaries of such reservation. Transfers of net proceeds from the sale of any lottery product to tribal governments under this section shall be made each year pursuant to § 42-7A-24.
Source: SL 1989, ch 372, § 1.
42-7A-20. Mileage and per diem paid commission members--Exception.
The members of the lottery commission shall be paid mileage at the same rate as allowed for state employees. The commission shall receive per diem compensation and allowable expense reimbursement in an amount set pursuant to § 4-7-10.4 for all time actually spent while attending commission meetings. However, no per diem may be paid to commission members who are state employees. The per diem shall be paid by vouchers duly verified and approved by the executive director of the lottery.
Source: SL 1987, ch 313, § 20.
42-7A-21. Rules and regulations.
The commission shall promulgate rules pursuant to chapter 1-26 governing the establishment and operation of a state lottery as necessary to carry out the purposes of this chapter. The commission shall promulgate rules concerning the following:
(1) The types of ticket lottery games to be conducted as authorized pursuant to this chapter;
(2) The manner of selecting the winning tickets. However, if a lottery game utilizes a drawing of winning numbers, a drawing among entries, or a drawing among finalists, such drawings shall always be open to the public and shall be recorded on both video and audio tape;
(3) The manner of payment of prizes to the holders of winning tickets;
(4) The frequency of the drawings or selections of winning tickets;
(5) The types of locations at which tickets may be sold;
(6) The methods to be used in selling tickets;
(7) Additional qualifications for the selection of lottery retailers, video lottery machine manufacturers, distributors, or operators and the amount of application fees to be paid by each;
(8) The amount and method of compensation to be paid to lottery retailers, including special bonuses and incentives;
(9) Deadlines for claims for prizes by winners of each lottery game. However, in no instance may such deadline be for more than one year;
(10) The mechanical and electronic specifications for each video lottery machine. At a minimum, each video lottery machine shall meet the requirements of § 42-7A-37;
(11) Machine security testing and inspection procedures;
(12) Liability for machine malfunction;
(13) Machine maintenance and repair;
(14) Financial responsibility of persons licensed under this chapter;
(15) Accounting procedures for net machine income;
(16) Licensing procedures under this chapter; and
(17) Such other matters necessary or desirable for the efficient or economical operation of the lottery or for the convenience of the public.
Source: SL 1987, ch 313, § 21; SL 1989, ch 368, § 9; SL 1991, ch 353, § 1; SL 1995, ch 243, § 1.
42-7A-22. Lottery operating fund--Continuous appropriation--Informational budget--Disbursements.
There is established within the state treasury the lottery operating fund, into which shall be deposited all revenues from the sale of lottery tickets, interest received on moneys in the lottery operating fund, and all other fees and moneys collected. For the purposes of this section, the award of a free ticket or free play does not constitute revenue. All money in the funds created by this section are continuously appropriated for the purposes specified in this section. All funds received by the state lottery shall be set forth in an informational budget as described in § 4-7-7.2 and be annually reviewed by the Legislature. Any disbursement from the lottery operating fund shall be by authorization of the executive director for any of the following purposes:
(1) The payment of prizes to the holders of valid, winning lottery tickets;
(2) Expenses of the lottery, which shall include all costs incurred in the operation and administration of the South Dakota Lottery; all costs resulting from contracts entered into for the purchase or lease of goods and services needed for operation of the lottery, including supplies, materials, tickets, independent studies and surveys, data transmission, advertising, printing, promotion, incentives, public relations, communications, compensation paid to lottery retailers; distribution of tickets; and reimbursement of costs of facilities and services provided by other state agencies; and
(3) Transfers of net proceeds to the state general fund.
Source: SL 1987, ch 313, § 22; SL 1990, ch 341, § 4; SL 2013, ch 219, § 4.
42-7A-23. Amount from sale of tickets allocated for payment of prizes--Means of payment for prizes.
As nearly as practical, a minimum of fifty percent of the projected revenue from the sale of lottery tickets, computed on a year-round basis from the combined sale of instant and on-line lottery games, shall be allocated for payment of prizes. The executive director shall award the designated prize to the holder of the ticket upon validation of a winning claim ticket. The executive director may make payment for prizes by any means he deems appropriate upon the validation of winning tickets.
Source: SL 1987, ch 313, § 23; SL 1989, ch 372, § 2; SL 1990, ch 341, § 5.
42-7A-24. Transfer of net proceeds to state funds.
Net proceeds from the sale of instant lottery tickets shall be transferred to the state general fund on an annual basis after July first each year. The commission shall maximize the net proceeds to the state from the sale of instant and on-line lottery tickets. In no event may yearly lottery expenses for the sale of lottery tickets, excluding expenditures from retained earnings, exceed the amount of combined net proceeds transferred to the state general fund and the state capital construction fund. Net machine income from video lottery games shall be directly deposited in the general fund upon receipt. Net proceeds are funds in the lottery operating fund which are not needed for the payment of prizes, lottery expenses, and total retained earnings up to one and one-half million dollars cash deemed necessary by the executive director and commission for replacement, maintenance, and upgrade of business systems, product development, legal, and operating contingencies of the lottery.
In fiscal year 2019, the commission shall transfer twenty-five percent of the net proceeds from the sale of on-line lottery tickets collected pursuant to § 42-7A-24 to the general fund and seventy-five percent of the net proceeds from the sale of on-line lottery tickets shall be transferred to the state capital construction fund created in § 5-27-1. In fiscal year 2020, the commission shall transfer thirty-five percent of the net proceeds from the sale of on-line lottery tickets collected pursuant to § 42-7A-24 to the general fund and sixty-five percent of the net proceeds from the sale of on-line lottery tickets shall be transferred to the state capital construction fund created in § 5-27-1. In fiscal year 2021, the commission shall transfer thirty-five percent of the net proceeds from the sale of on-line lottery tickets collected pursuant to § 42-7A-24 to the general fund and sixty-five percent of the net proceeds from the sale of on-line lottery tickets shall be transferred to the state capital construction fund created in § 5-27-1. In fiscal year 2022, the commission shall transfer fifty percent of the net proceeds from the sale of on-line lottery tickets collected pursuant to § 42-7A-24 to the general fund and fifty percent of the net proceeds from the sale of on-line lottery tickets shall be transferred to the state capital construction fund created in § 5-27-1. In fiscal year 2023 and each year thereafter, the commission shall transfer seventy percent of the net proceeds from the sale of on-line lottery tickets collected pursuant to § 42-7A-24 to the general fund and thirty percent of the net proceeds from the sale of on-line lottery tickets shall be transferred to the state capital construction fund created in § 5-27-1.
Source: SL 1987, ch 313, § 24; SL 1988, ch 345; SL 1989, ch 372, § 3; SL 1990, ch 341, § 6; SL 1990, ch 46, § 4A; SL 1993, ch 48, § 4; SL 1993, ch 319, § 1; SL 1996, ch 47, § 2; SL 1997, ch 241, § 1; SL 2013, ch 219, § 5; SL 2015, ch 39, § 7; SL 2018, ch 124, § 5.
42-7A-24.1. Acceptance and expenditure of funds obtained from federal sources, gifts, contributions and other sources.
The lottery commission may accept and expend for the purpose of this chapter any funds obtained from federal sources, gifts, contributions, or any other source if such acceptance and expenditure is approved in accordance with § 4-8B-10.
Source: SL 1987, ch 313, § 26.
42-7A-24.2. Payment of expenditures.
Expenditures authorized by this chapter from the lottery operating fund shall be paid on warrants drawn by the state auditor on vouchers approved by the executive director of the state lottery.
Source: SL 1987, ch 313, § 27; SL 2013, ch 219, § 6.
42-7A-25. Employment and direction of investigative personnel.
The executive director may employ and direct investigative personnel to conduct administrative investigations pursuant to licensing and enforcement of rules. The executive director shall contract with the attorney general for necessary security and law enforcement services in conducting background investigations.
Source: SL 1987, ch 313, § 29; SL 1993, ch 317, § 8; SL 2008, ch 223, § 1.
42-7A-26. Appointment of assistant attorney general to assist in enforcement.
The attorney general shall appoint an assistant attorney general to assist the South Dakota Lottery in the enforcement of the criminal and civil provisions of this chapter.
Source: SL 1987, ch 313, § 30.
42-7A-27. Commission members or lottery employees not to have interest in lottery contracts or to accept gifts or loans from persons or businesses contracting with lottery--Violation as misdemeanor.
No member of the commission, employee of the South Dakota Lottery, or any person residing in the same household as either of the aforementioned may:
(1) Directly or indirectly, individually, as a member of a partnership or other association, or as a stockholder, director, or officer of a corporation, have an interest in a business which contracts for the operation or promotion of the lottery; or
(2) Accept or agree to accept any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service having an aggregate value of one hundred dollars or more in any calendar year from a person or business contracting or seeking to contract with the state to supply materials, tickets, or consulting services for use in the lottery or from a lottery retailer, person licensed, or an applicant for a contract or license under this chapter.
A knowing violation of this section is a Class 1 misdemeanor.
Source: SL 1987, ch 313, § 31; SL 1989, ch 368, § 13; SL 1991, ch 186, § 34.
42-7A-28. Persons contracting to supply materials, tickets or consulting services not to give gifts or loans to commission members or lottery employees--Violation as misdemeanor.
Any person contracting or seeking to contract with the state to supply materials, tickets, or consulting services for use in the lottery or from a lottery retailer, person licensed, or an applicant for a contract or license under this chapter may not offer, pay, give, or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service having an aggregate value of one hundred dollars or more in any calendar year to a member of the commission or employee of the South Dakota Lottery, or to any person residing in the same household of either of the aforementioned. A knowing violation of this section is a Class 1 misdemeanor.
Source: SL 1987, ch 313, § 32; SL 1989, ch 368, § 14; SL 1991, ch 186, § 35.
42-7A-29. Removal from office for violation of conflict of interest provisions--Application of other conflict of interest statutes.
If a member of the commission or employee of the South Dakota Lottery, or any person residing in the same household of either of the aforementioned, violates any provision of §§ 42-7A-27 and 42-7A-28, such member of the commission or employee of the South Dakota Lottery shall be removed from his office or position. In addition to the provisions of this section, or §§ 42-7A-27 and 42-7A-28, all other provisions of state law relating to conflicts of interest of state employees apply to the members of the commission and employees of the South Dakota Lottery.
Source: SL 1987, ch 313, § 33; SL 1991, ch 186, § 36.
42-7A-30. Counterfeiting lottery tickets Class 6 felony.
Any person who, with intent to defraud, falsely makes, alters, forges, passes, or counterfeits a lottery ticket issued by the South Dakota Lottery under this chapter is guilty of a Class 6 felony.
Source: SL 1987, ch 313, § 34.
42-7A-31. Sale of tickets at price greater than that fixed by rules prohibited--Sale by authorized retailer only--Violation.
No person may sell a lottery ticket at a price greater than that fixed by the rules adopted pursuant to this chapter. No person other than a lottery retailer authorized by the South Dakota Lottery may sell or resell lottery tickets. Any person convicted of violating this section is guilty of a Class 1 misdemeanor on the first offense and a Class 6 felony on the second or subsequent offense.
Source: SL 1987, ch 313, § 35.
42-7A-32. Sale of ticket to person under eighteen prohibited--Violation--Gift of ticket to person under eighteen permitted--Prize paid to parent or guardian.
No lottery ticket may be sold to any person under the age of eighteen years. Any lottery retailer, employee of a lottery retailer, or any other person who knowingly sells or offers to sell a lottery ticket to any person who is under the age of eighteen years is guilty of a Class 1 misdemeanor on the first offense and a Class 6 felony on the second or subsequent offense. A lottery ticket may be given as a gift to a person under the age of eighteen years. Any prize won by a person under the age of eighteen years from a ticket given as a gift shall be paid to such person's parent or legal guardian.
Source: SL 1987, ch 313, § 36.
42-7A-33. Purchase of ticket or payment of prize to certain persons prohibited--Exceptions.
No lottery ticket may be purchased by, and no prize may be paid to, any of the following persons or to any person related by blood or marriage and who is a member of the same household in the principal place of abode of any such person:
(1) Any member of the commission or employee of the South Dakota Lottery, unless authorized in writing by the executive director; or
(2) Any officer or employee of a company or business which is currently engaged in supplying equipment, supplies, or services being used directly in the operation of any lottery conducted pursuant to this chapter, unless authorized in writing by the executive director for research purposes. However, no prize may be paid on any ticket purchased for research purposes.
Nothing in this section prohibits any lottery retailer or his employee from purchasing lottery tickets or from being paid a prize of a winning ticket. Any person who knowingly violates this section is guilty of a Class 1 misdemeanor on the first offense and a Class 6 felony on the second or subsequent offense.
Source: SL 1987, ch 313, § 37.
42-7A-34. Prize paid to holder of winning ticket--Deceased winner's prize paid to representative--Right to prize nonassignable--Prizes subject to taxation--Disposition of unclaimed prize--Liability of lottery after payment of prize.
The prize to be paid or awarded for each winning ticket shall be paid to the person who is adjudged by the executive director to be the holder of such winning ticket. However, the prize of a deceased winner shall be paid to the duly appointed representative of the estate of such winner or to any other person claiming the prize pursuant to the provisions of chapter 30-11A. The right of a person to a prize drawn or awarded is not assignable. All prizes awarded shall be taxed as South Dakota source income and are subject to federal income tax laws and regulations. Unclaimed prize money shall be retained for a period deemed appropriate by the executive director and if no claim is made within such period, then such unclaimed prize money shall be added to the prize pools of subsequent lottery games. The State of South Dakota, members of the commission and employees of the South Dakota Lottery are discharged of all further liability upon payment of a prize pursuant to this section.
Source: SL 1987, ch 313, § 38; SL 1989, ch 371, § 1; SL 1990, ch 341, § 7.
42-7A-36. Certain mechanical or electronic devices prohibited--Violation as felony--Devices as nuisances.
No person may have in his possession, custody, or under his control or permit to be kept in any place under his possession or control, any device that awards credits and contains a circuit, meter or switch capable of removing and recording the removal of credits when the award of credits is dependent upon chance. A violation of this section is a Class 6 felony. All devices described in this section are hereby declared to be public nuisances. The provisions of this section do not apply to devices or electronic video game machines licensed pursuant to this chapter.
Source: SL 1989, ch 368, § 15.
42-7A-37. Requirements for licensed video lottery machines.
Each video lottery machine licensed under this chapter:
(1) Shall offer only games licensed by the South Dakota Lottery and authorized by the commission;
(2) May not have any means of manipulation that affect the random probabilities of winning a video lottery game;
(3) Shall have one or more mechanisms that accept coins, cash in the form of bills, or a ticket voucher. The mechanisms shall be designed to prevent obtaining credits without paying by stringing, slamming, drilling, or other means. If such attempts involve physical tampering, the machine shall suspend itself from operation until reset;
(4) Shall have nonresettable meters housed in any readily accessible locked machine area that keep a permanent record of all cash and ticket vouchers inserted into the machine, all refunds of winnings made by the machine's printer, credits played for video lottery games, and credits won by video lottery players;
(5) Shall be capable of printing a ticket voucher stating the value of the prize for the player at the completion of each video lottery game, the time of day in a twenty-four hour format showing hours and minutes, the date, the machine serial number, the sequential number of the ticket vouchers, and an encrypted validation number from which the validity of the prize may be determined;
(6) Shall have accounting software that keeps an electronic record which includes, but is not limited to, the following: total cash inserted into the machine, total cash value of ticket vouchers inserted into the machine, the value of winning tickets claimed by players, the total video lottery credits played and the total video lottery credits awarded by a video lottery game, and the payback percentage credited players of each video lottery game;
(7) Shall be linked under a central communications system to provide auditing program information as approved by the commission. The communications system shall be installed and all testing conducted no later than December 1, 1989. Until such time, all accounting of machine transactions shall be audited by electronic records maintained by each video lottery machine as required in subdivision (6) of this section. In no event may the communications system approved by the commission limit participation to only one manufacturer of video lottery machines by either the cost in implementing the necessary program modifications to communicate or the inability to communicate with the central communications system. Nothing in this section may be construed as requiring a machine that only offers video lottery games to be on-line or in constant communication with a central computer.
Source: SL 1989, ch 368, § 16; SL 2022, ch 161, § 2.
42-7A-37.1. Restrictions on licensed establishment.
A business licensed pursuant to subdivisions 35-4-2(12) and (16) may not be a licensed establishment for video lottery placement pursuant to subdivision 42-7A-1(6) unless it is a bar or lounge. For the purposes of this section, a bar or lounge is an enterprise primarily maintained and operated for the selling, dispensing, and consumption of alcoholic beverages on the premises and may also include the sale and service of food. A bar or lounge may be physically connected to another enterprise within the same building, which enterprise may be owned or operated by the same person. There may be interior access between a bar or lounge and a connected enterprise. However, there shall be a floor to ceiling opaque wall separation between the two enterprises. A separation wall may be constructed to provide visual and physical access for employees from areas in the building not open to the public. The bar or lounge shall have a separate entrance and exit. A separate entrance and exit is not required if entrance to the bar may only be obtained from the other distinct enterprise and the public may not enter the other enterprise by first passing through the bar or lounge. All video lottery machines shall be adequately monitored during business hours. Adequate monitoring shall be accomplished by the personal presence of an employee or by an employee using video cameras or mirrors and periodic inspections of the bar or lounge. No new license may be issued to any establishment after July 1, 1992, unless such establishment complies with this section. No license may be renewed to any establishment after July 1, 1993, unless such establishment complies with this section.
Source: SL 1991, ch 351, §§ 2, 3; SL 1992, ch 304, § 2.
42-7A-38. Limit on amount played and awards given.
A video lottery machine may not allow more than two dollars to be played on a game or award free games or credits in excess of one thousand dollars per bet. The payback value of one credit shall be at least eighty percent of the value of the credit.
Source: SL 1989, ch 368, § 17; SL 2013, ch 219, § 7.
42-7A-39. Display of license for video lottery machine--Confiscation--Violation as felony.
Each video lottery machine shall be licensed by the executive director before placement or operation on the premises of a licensed establishment. Each machine shall have the license prominently displayed thereon. Any machine which does not display the license required by this section is contraband and a public nuisance subject to confiscation by any law enforcement officer. A violation of this section is a Class 6 felony.
Source: SL 1989, ch 368, § 18.
42-7A-40. Examination of video lottery machines--Costs paid by manufacturer--Contract for examination.
The South Dakota Lottery shall examine prototypes of video lottery machines and associated equipment of manufacturers seeking a license as required in this chapter. The South Dakota Lottery may require the manufacturer seeking the examination and approval of a video lottery machine or associated equipment to pay the anticipated actual costs of the examination in advance and, after the completion of the examination, shall refund overpayments or charge and collect amounts sufficient to reimburse the South Dakota Lottery. The South Dakota Lottery may contract for the examination of video lottery machines and associated equipment as required by this section.
Source: SL 1989, ch 368, § 19; SL 2013, ch 219, § 8.
42-7A-41. Video lottery machine manufacturer, distributor, operator, and establishment licenses required--Fees.
Each video lottery machine manufacturer, distributor, operator, and licensed establishment shall be licensed by the executive director before any video lottery machine or associated equipment is manufactured, distributed, sold, or placed for public use in this state. The commission shall, by rule promulgated pursuant to chapter 1-26, establish an annual fee for each license not to exceed the following:
(1) Video lottery machine manufacturer--$5,000;
(2) Video lottery machine distributor--$5,000;
(3) Video lottery machine operator--the greater of $1,000 or $100 per machine licensed; and
(4) Video lottery establishment--$100.
In addition to the annual license fees, the executive director may charge a one-time license application fee not to exceed fifty dollars. All fees collected pursuant to this section shall be deposited in the video lottery operating fund created by § 42-7A-41.1. All licenses issued by the South Dakota Lottery under this section are renewable annually unless sooner cancelled or terminated. No license issued under this section is transferable or assignable.
Source: SL 1989, ch 368, § 20; SL 1990, ch 341, § 8; SL 1990, ch 342, § 1.
42-7A-41.1. Video lottery operating fund established.
There is created in the state treasury the video lottery operating fund, into which shall be deposited the fees imposed pursuant to § 42-7A-41 and one-half of one percent of net machine income.
Source: SL 1990, ch 342, § 2; SL 1991, ch 353, § 2.
42-7A-41.2. Posting video lottery odds required.
The odds of winning each video lottery game shall be posted on or near each video lottery machine. The manner in which the odds are calculated and how they are posted shall be established by the commission by rule promulgated pursuant to chapter 1-26.
Source: SL 1991, ch 354.
42-7A-42. Multiple types of licenses prohibited.
A video lottery machine manufacturer may not be licensed as a video lottery machine operator or own, manage, or control a licensed establishment. A video lottery machine distributor may not be licensed as a video lottery machine operator or own, manage, or control a licensed establishment. A video lottery machine operator may not be licensed as a video lottery machine manufacturer or distributor. An owner or manager of a licensed establishment may not be licensed as a video lottery machine manufacturer or distributor. Nothing in this section restricts an owner or manager of a licensed establishment from owning video lottery machines licensed under § 42-7A-41 and placing such machines on the premises, provided they meet the same requirements of video machine operators. However, nothing in this section prohibits the commission, after prior notice to all licensed video lottery machine operators, from authorizing the placement of video lottery machines by a manufacturer in an establishment that satisfactorily demonstrates that it is otherwise unable to obtain appropriate machine placement or service.
Source: SL 1989, ch 368, § 21.
42-7A-43. Background investigation of video lottery licensees--Eligibility requirements.
Any person licensed as a video lottery machine manufacturer, distributor, operator, or lottery retailer shall submit to a background investigation. This includes each partner of a partnership and each director and officer and all stockholders of five percent or more in a parent or subsidiary corporation of a video lottery machine manufacturer, distributor, operator, or lottery retailer. A video lottery machine manufacturer or distributor shall meet the same requirements of subdivisions 42-7A-13(1) to (4), inclusive, and § 42-7A-14. A video lottery machine operator shall meet the same requirements of §§ 42-7A-13 and 42-7A-14, in addition to being a resident of the State of South Dakota and, if a partnership or corporation, the majority of ownership interest shall be held by residents of the state or by a public company or its subsidiary licensed as a video lottery machine operator pursuant to chapter 42-7A prior to January 1, 1997, and traded on any market regulated or recognized by the United States Securities and Exchange Commission. A copy of any disclosure statement involving ownership of the public company required to be filed with the United States Securities and Exchange Commission shall be filed with the lottery commission. A lottery retailer shall meet the same requirements of §§ 42-7A-13 and 42-7A-14. Any applicant for any license under this chapter has the burden of proving his or her qualifications to the satisfaction of the commission and executive director. The commission may adopt rules pursuant to chapter 1-26 to establish additional requirements to preserve the integrity and security of the lottery.
Source: SL 1989, ch 368, § 22; SL 1993, ch 317, § 10; SL 1997, ch 242, § 1.
42-7A-44. Rules for placement of video lottery machines--Number limited--Placement in bar or lounge with on-sale license.
The placement of video lottery machines in licensed establishments shall be subject to the rules of the commission promulgated pursuant to chapter 1-26. No more than ten video lottery machines may be placed in any licensed establishment. The bar or lounge with an on-sale license issued pursuant to subdivision 35-4-2(12) or (16) shall be restricted to persons twenty-one years of age or older. The entrance to the area where video lottery machines are located shall display a sign that the premises are restricted to persons twenty-one years or older. Notwithstanding the restrictions in § 35-4-79, persons under the age of twenty-one may only enter the premises where video lottery machines are located provided they are accompanied by a parent, guardian, or spouse of twenty-one years or older.
Source: SL 1989, ch 368, § 23; SL 1991, ch 355, § 1; SL 1992, ch 304, § 3.
42-7A-44.1. Denial or revocation of license for noncompliance.
The commission shall deny or revoke an establishment license for video lottery machine placement that does not meet the requirements of § 42-7A-44.
Source: SL 1991, ch 355, § 2; SL 2013, ch 219, § 9.
42-7A-44.2. On-sale license--Municipal event center or recreation facility--Placement of video lottery machines prohibited.
No video lottery machines may be placed in a facility with an on-sale license issued pursuant to § 35-4-14.1.
Source: SL 2023, ch 132, § 2.
42-7A-45. Video lottery machine income--Remittance to state--False report as felony--Records--Penalty.
The state's percentage of net machine income shall be reported and remitted to the South Dakota Lottery within fifteen days after the fifteenth day of each month and within fifteen days after the end of each month by the machine owner. A machine owner who falsely reports or fails to report the amount due required by this section is guilty of a Class 6 felony and is subject to termination of his license by the South Dakota Lottery. Each machine owner shall keep a record of net machine income in such form as the executive director may require. All payments not remitted when due shall be paid together with a penalty assessment on the unpaid balance at a rate of one and one-half percent per month.
Source: SL 1989, ch 368, § 24.
42-7A-46. Tampering with video lottery machine as misdemeanor.
Any person who tampers with a video lottery machine with intent to interfere with the proper operation of such machine is guilty of a Class 1 misdemeanor.
Source: SL 1989, ch 368, § 25.
42-7A-47. Manipulating outcome, payoff, or operation of video lottery machine as felony.
Any person who with intent to manipulate the outcome, payoff, or operation of a video lottery machine, manipulates the outcome, payoff, or operation of a video lottery machine by physical tampering or any other means is guilty of a Class 5 felony.
Source: SL 1989, ch 368, § 26.
42-7A-48. Age limit and legal hours of operation for video lottery machines.
No person under twenty-one years of age may play a video lottery machine licensed pursuant to § 42-7A-41. No video lottery machine licensed pursuant to § 42-7A-41 may be played except during the legal hours of operation allowed for the on-sale consumption of alcoholic beverages. A violation of this section is a Class 2 misdemeanor.
Source: SL 1989, ch 368, § 27; SL 1990, ch 342, § 3.
42-7A-49. Lottery products on Indian reservations authorized.
The lottery may negotiate with Indian tribes for the placement and distribution of lottery products within the exterior boundaries of Indian reservations within the state.
Source: SL 1989, ch 368, § 29.
42-7A-50. Confidentiality of lottery records.
Information and records of the South Dakota Lottery are confidential, except for official purposes, and may not be disclosed except to officers, employees, or legal representatives of the Department of Revenue for the purpose of and only to the extent necessary in the investigation and audit procedures authorized by Title 10 or in accordance with a judicial order. No person may use a subpoena, discovery, or other applicable statutes to obtain such information or records. Information and records considered confidential include:
(1) Applications, credit, and security checks of lottery retailers, licensees, and persons seeking or doing business with the lottery;
(2) Marketing, financial, or sales data, the disclosure of which may be harmful to the competitive position of the South Dakota Lottery, its retailers, licensees, or persons seeking or doing business with the lottery;
(3) Audit work papers, worksheets, and auditing procedures used by the lottery, its agent, or employees; and
(4) Tax returns of individual licensees.
However, this section may not be construed to make confidential the name of any video lottery operator including, if the video lottery operator is a partnership, the name of any partner and, if the video lottery operator is an association or corporation, the name of any director, any officer, and any stockholder who owns five percent or more of the stock in the association or a parent or subsidiary corporation.
Source: SL 1989, ch 368, § 30; SL 1992, ch 70, § 2; SL 2001, ch 239, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
42-7A-50.1. Prize winner personal information--Consent to make public.
The personal information of a lottery prize winner may only be used in advertising or promotion with the written consent of the winner. If the South Dakota Lottery obtains written consent from the winner, the lottery may only use the information to which the winner consented. This section does not apply to the personal information of any winner of a promotional drawing offered by the lottery.
Terms used in this section mean:
(1) "Personal information," the prize winner's name, address, gender, age, and photograph; and
(2) "Promotional drawing," a second-chance drawing or a public contest or other giveaway that does not require payment to participate.
Source: SL 2024, ch 175, § 1.
42-7A-51. Lottery setoff program established--Computerized file of persons owing state.
The commission shall establish a liability setoff program by which lottery prize payments may be used to satisfy debts owed or collected through state agencies. Any participating state agency shall, on a monthly basis, provide the executive director a computerized file of persons owing a debt to or collected through that state agency which contains the following information: the first name, last name, middle initial, social security number, and the amount of the debt.
Source: SL 1989, ch 371, § 3.
42-7A-52. Debt setoff from prize due--Notice of right to appeal--Time limitation--Transfer of setoff amount to agency.
The executive director shall match the information submitted by the agency with persons who are entitled to a lottery prize payment in an amount in excess of one hundred dollars. If there is a match, the executive director shall set off the amount of the debt from the prize due and notify the person of the person's right to appeal to the appropriate court or to request a review by the agency pursuant to agency rule. The person shall make a request or appeal within thirty days after the setoff. If the setoff accounts for only a portion of the prize due, the remainder of the prize shall be paid to the person. The executive director shall promptly transfer the setoff amount to the agency.
Source: SL 1989, ch 371, § 4.
42-7A-53. Commission, employees, and lottery discharged from liability.
The members of the commission, executive director, employees, and the lottery are discharged of all further liability for the amount of any setoff paid to a state agency or proceeding brought pursuant to §§ 42-7A-34 and 42-7A-51 to 42-7A-55, inclusive.
Source: SL 1989, ch 371, § 5.
42-7A-54. Apportionment of prize among agencies--Priority of child support payments.
If two or more agencies have delinquent accounts for the same person, the executive director shall apportion the prize equally among them. However, a setoff to the Department of Social Services for child support payments has priority over all other setoffs.
Source: SL 1989, ch 371, § 6.
42-7A-55. Collection of remainder of debt.
If the prize is insufficient to satisfy the entire debt, the remainder of the debt may be collected by the agency as provided by law and resubmitted for setoff against any other prize awarded.
Source: SL 1989, ch 371, § 7.
42-7A-56. Public policy declared.
The Legislature hereby finds, and declares to be the public policy of this state that:
(1) The success of the South Dakota Lottery is dependent upon public confidence and trust that it is conducted honestly and free from criminal and corruptive elements;
(2) Public confidence and trust can only be maintained by strict regulation of all persons, locations, practices, associations, and activities related to the sale of lottery products and the operation, manufacturing, and distribution of video lottery games and equipment; and
(3) No applicant for a license or other affirmative commission action has any right to a license or to the granting of the approval sought. Any license issued or other commission approval granted pursuant to the provisions of this chapter is a revocable privilege, and no holder acquires any vested interest or property right therein or thereunder.
Source: SL 1993, ch 317, § 1.
42-7A-57. Approval or disapproval of license applications.
The executive director may approve or disapprove any application for license, as provided in § 42-7A-41, depending upon whether the executive director deems the applicant a suitable person to hold the license and whether the executive director considers the proposed location suitable. Failure of the applicant to provide information necessary to allow investigation into his background, is also grounds for denial of the license.
Source: SL 1993, ch 317, § 3.
42-7A-58. Reapplication for license after denial or revocation.
Any applicant for a license who has had his application denied or revoked by the executive director pursuant to § 42-7A-57 may not reapply until at least one year has elapsed from the date of the denial or revocation. Any person who has been denied a license or had a license revoked for a second time may not reapply until at least three years have passed since the date of the second denial or revocation.
Source: SL 1993, ch 317, § 4.
42-7A-59. False statements in license applications--Perjury.
No person may knowingly make a false statement in any application for a license or in any statement attached to the application. Any person who signs an application for a license issued pursuant to this chapter knowing that any information on such application or in any statement attached to the application is false or untrue, in whole or in part, is guilty of perjury.
Source: SL 1993, ch 317, § 9.
42-7A-60. Executive or closed meetings permitted.
In addition to the provisions of § 1-25-2, the commission may hold executive or closed meetings for any of the following purposes:
(1) Considering applications for licensing when discussing the background investigations or personnel information;
(2) Consulting with the executive director and employees of the lottery concerning possible lottery rule or law violations;
(3) Meeting with lottery officials of other jurisdictions, the attorney general or law enforcement officials relating to possible criminal violations; or
(4) Deliberations after hearing evidence on a contested case necessary to reach a decision.
Source: SL 1993, ch 317, § 11.
42-7A-62. Collection of fee--Deposit in general fund.
In addition to the fee collected pursuant to § 42-7A-41 and deposited in the video lottery operating fund, the following fee shall be collected each year and deposited into the general fund:
Video lottery machine manufacturers--$15,000.
Source: SL 1993, ch 318, § 2; SL 1995, ch 243, § 3.
42-7A-63. State's percentage of net machine income--Deposit into general fund and video lottery operating fund.
The commission shall maximize revenues to the state from video lottery. The state's percentage of net machine income shall be fifty percent. The state's percentage of net machine income shall be directly deposited to the general fund, except for one-half of one percent of net machine income authorized for deposit into the video lottery operating fund.
Source: SL 1993, ch 318, § 3; SL 1994, ch 330; SL 1995, ch 243, § 2; SL 1996, ch 72, § 2B; SL 2015, ch 39, § 8.
42-7A-64. Additional criteria for on-sale alcoholic beverage licensees in video lottery licensed establishments.
A municipality or county may consider, in addition to the criteria for the issuance of an on-sale alcoholic beverage license, the following criteria for authorizing video lottery machine placement in establishments issued an on-sale alcoholic beverage license pursuant to subdivisions 35-4-2(12) and (16):
(1) The number of establishments currently licensed for video lottery;
(2) The proximity of the business to other establishments licensed for video lottery;
(3) The type of business and manner in which the applicant proposes to operate it;
(4) The location of the business in relation to other businesses, residential areas, or activities within the same general area;
(5) The extent to which minors frequent a business connected to the one proposed; and
(6) The effect the proposed business has on economic development.
The governing board shall certify on each application filed with the Department of Revenue for a license granted under subdivisions 35-4-2(12) and (16) whether the business premises is authorized for video lottery machine placement. An existing video lottery license may not be denied renewal or transfer based upon the criteria set forth in this section. The lottery may issue a video lottery license to those establishments certified pursuant to this section. Notwithstanding the above provisions, a county or municipality may not restrict the number of alcoholic beverage licenses issued under subdivisions 35-4-2(12) and (16) and certified for video lottery to a number less than those licensed as video lottery establishments on March 1, 1994.
Source: SL 1994, ch 329, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
CHAPTER 42-7B
LIMITED CARD GAMES, SLOT MACHINES, CRAPS, ROULETTE, AND KENO
42-7B-1 Limited gaming authorized within city of Deadwood.
42-7B-2 Authority conditioned--Repeal.
42-7B-2.1 Public policy.
42-7B-3 Regulation by commission.
42-7B-4 Definition of terms.
42-7B-5 Disposition of proceeds.
42-7B-6 South Dakota Commission on Gaming created.
42-7B-7 Promulgation of rules--Enforcement of chapter.
42-7B-7.1 Commission may suspend gaming at its discretion.
42-7B-8 Regular and special meetings--Quorum--Cost of special meeting requested by person other than chair, two members, or Governor.
42-7B-8.1 Purposes for executive or closed meetings.
42-7B-9 Appointment and removal of executive secretary--Duties--Salary.
42-7B-9.1 Executive secretary's access to files and records.
42-7B-10 Compensation for commission members--Expenses paid.
42-7B-11 Powers of commission.
42-7B-12 Appeal of final action of commission--Denial of license not appealable.
42-7B-13 Powers of attorney general pursuant to chapter.
42-7B-14 Maximum amount of bets.
42-7B-15 Approval of rules for certain games.
42-7B-16 Maximum number of gaming devices per license.
42-7B-16.1 42-7B-16.1. Repealed by special referendum election held September 14, 1993
42-7B-16.2 42-7B-16.2 to 42-7B-16.4. Not implemented
42-7B-17 Responsibilities of operator.
42-7B-18 Identification of retail floor plan--Approval--License granted only to retailer--Location of devices.
42-7B-19 Approval or disapproval of license.
42-7B-19.1 Denial of application--Reapplication.
42-7B-19.2 Investigation of license applicant--Failure to allow.
42-7B-20 Holding license by certain persons prohibited.
42-7B-21 Application fee and form.
42-7B-22 Licenses--Fees--Renewal--Violation as felony.
42-7B-22.1 Licensing of key employee may be required--Grounds--Time limit for response from employee--Written request to review status as key employee.
42-7B-23 Annual license stamp fee--Transfer of license stamp.
42-7B-24 License revocable--Not transferable.
42-7B-25 Qualifications for license as operator, gaming property owner, retailer, or provider.
42-7B-25.1 Internal control procedure for particular licensee may be established.
42-7B-26 Repealed by SL 2012, ch 207, § 1.
42-7B-27 Employee support license--Qualifications.
42-7B-28 Gaming tax.
42-7B-28.1 Additional tax on gaming proceeds.
42-7B-28.2 Calculation of adjusted gross proceeds.
42-7B-29 Return and remittance--Forms furnished by secretary.
42-7B-30 Violations of taxation provisions punishable as felony or misdemeanor.
42-7B-31 Failure to file--Penalties.
42-7B-32 Suspension or revocation of license--Grounds--Reprimand or monetary penalty.
42-7B-33 Person involved as manufacturer, distributor, operator, retailer, gaming property owner, provider, key employee, or support licensee--Qualifications.
42-7B-34 42-7B-34. Repealed by SL 1993, ch 321, § 8
42-7B-35 Age of participants--Violation as misdemeanor.
42-7B-36 Minimum payback value of credit.
42-7B-37 Exemption from federal law.
42-7B-38 Shipments of devices and machines deemed legal.
42-7B-39 Shipping records required to be maintained--Report by recipient--Transport out of state--Violation as felony.
42-7B-39.1 Shipping records delivered to commission.
42-7B-39.2 Destruction of seized slot machine.
42-7B-40 Licensed employee twenty-one years or older required on premises.
42-7B-41 False statement or records--Failure to keep books and records--Violations as felony.
42-7B-42 Unlawful acts by participants--Felony.
42-7B-42.1 42-7B-42.1. Repealed by SL 1995, ch 245, § 15
42-7B-43 Slot machines and wagering equipment--Security and audit specifications.
42-7B-44 Expenditure of public funds for purchase of certain machines--Proceeds--Placement.
42-7B-45 Extension of credit prohibited--Violation as felony.
42-7B-46 Historic restoration and preservation fund created.
42-7B-47 Gaming exempt from certain statutes.
42-7B-48 South Dakota Gaming Commission fund established--Disbursements.
42-7B-48.1 Distribution of funds following payment to City of Deadwood.
42-7B-48.2 General state aid to school districts reduced by payments from Gaming Commission fund.
42-7B-48.3 Gaming addiction treatment and counseling program grants from Gaming Commission fund.
42-7B-49 Acceptance and expenditure of funds by commission.
42-7B-50 Payment of expenditures.
42-7B-51 42-7B-51. Repealed by SL 1990, ch 343, § 28
42-7B-52 Taxes and fees to support identified entities.
42-7B-53 Statement of public policy--Equipment not subject to certain exclusive agreements.
42-7B-54 Anticipatory revenue bonds.
42-7B-55 Certain gambling statutes not applicable.
42-7B-56 Appointment of commission employee as law enforcement officer.
42-7B-57 Commission use of unmarked vehicles.
42-7B-58 Records--Confidentiality--Exception for official purposes and tax purposes.
42-7B-59 Certain communications between commission and secretary privileged and confidential.
42-7B-60 Exclusion or ejection of certain persons from gaming establishments necessary.
42-7B-61 List of persons to be excluded--Entrance in violation as misdemeanor--Penalty for failure to exclude or eject persons on list.
42-7B-62 Notice to excluded person.
42-7B-63 42-7B-63. Repealed by special referendum election held September 14, 1993
42-7B-64 "Gaming contract" defined.
42-7B-65 Copy of any process or pleading to the commission.
42-7B-66 Copies of all proposed gaming contracts to the executive secretary.
42-7B-67 Notification by licensee of involvement in gaming operations out of state or on any Indian reservation.
42-7B-68 Fees for publication and reports.
42-7B-69 Manufacture of gaming devices or equipment for exportation.
42-7B-70 Provision applicable to manufacture of gaming devices and equipment for exportation.
42-7B-71 Provision of interlink communications service to slot machines--Not applicable in Deadwood.
42-7B-72 Lien for tax, penalty or interest due--Notice of tax lien filed with register of deeds--Priority.
42-7B-73 Distress warrant--Seizure and sale of personal property.
42-7B-74 Personal liability of corporate officers, member-managers or managers of limited liability companies, or partners--Bond or certificate of deposit.
42-7B-75 Cancellation or revocation of voluntarily surrendered license.
42-7B-76 Sports wagering receipts maintained separately.
42-7B-77 Advance deposit sports wagering--Account requirements.
42-7B-78 Advance deposit sports wagering--Establishing account--Duty to retain application--Application considered record.
42-7B-79 Advance deposit sports wagering restrictions--Required equipment.
42-7B-80 Investigation conducted by sport's governing body.
42-7B-81 Licensee's duty to report criminal or disciplinary proceeding--Commission may share information.
42-7B-82 Betting prohibited on certain events.
42-7B-83 Certain persons prohibited from betting.
42-7B-1. Limited gaming authorized within city of Deadwood.
Limited card games, slot machines, craps, roulette, keno, and wagering on sporting events are hereby authorized, and may be operated, conducted, and maintained, within the city limits of the city of Deadwood, South Dakota, subject to the provisions of this chapter.
Source: SL 1989, ch 374, § 1; SL 2015, ch 218, § 1; SL 2021, ch 189, § 1.
42-7B-2. Authority conditioned--Repeal.
No gaming is allowed under the authority of this chapter until the question to be submitted pursuant to § 42-7B-1 is approved by the voters of Deadwood, and until this chapter is implemented through the grant of applicable licenses by the South Dakota Commission on Gaming. If the voters of the City of Deadwood fail to approve the question to be submitted pursuant to § 42-7B-1 by July 1, 1989, the provisions of this chapter are repealed as of that date.
Source: SL 1989, ch 374, § 1A.
42-7B-2.1. Public policy.
The Legislature hereby finds, and declares to be the public policy of this state, that:
(1) The success of gaming is dependent upon public confidence and trust that licensed gaming is conducted honestly and competitively, that the rights of the creditors of licensees are protected and that gaming is free from criminal and corruptive elements;
(2) Public confidence and trust can only be maintained by strict regulation of all persons, locations, practices, associations, and activities related to the operation of licensed gaming establishments and the manufacture or distribution of gaming devices and equipment;
(3) All establishments where gaming is conducted and where gambling devices are operated, and manufacturers, sellers, and distributors of certain gambling devices and equipment must therefore be licensed, controlled, and assisted to protect the public health, safety, morals, good order, and the general welfare of the inhabitants of the state, to foster the stability and success of gaming and to preserve the economy and policies of free competition of the State of South Dakota;
(4) No applicant for a license or other affirmative commission approval has any right to a license or to the granting of the approval sought. Any license issued or other commission approval granted pursuant to the provisions of this chapter is a revocable privilege, and no holder acquires any vested right therein or thereunder.
Source: SL 1990, ch 343, § 23; SL 1993, ch 320, § 1 rejected by referendum held September 14, 1993.
42-7B-3. Regulation by commission.
Gaming within the city limits of the city of Deadwood shall be regulated by the South Dakota Commission on Gaming.
Source: SL 1989, ch 374, § 2; SL 1993, ch 320, § 2 rejected by referendum held September 14, 1993; SL 2015, ch 218, § 2.
42-7B-4. Definition of terms.
Terms used in this chapter mean:
(1) "Adjusted gross proceeds," except in the case of the games of poker, gross proceeds less cash prizes. In games of poker, the term means any sum wagered in a poker hand that may be retained by the licensee as compensation which must be consistent with the minimum and maximum amount established by the commission;
(2) "Advance deposit sports wagering," a method of wagering on sporting events in which an eligible individual may, in an account established with a licensed operator or route operator, deposit money into an account and use the balance to pay for bets placed on the premises of a licensed gaming establishment as approved by the commission in the city of Deadwood;
(3) "Associated equipment," any equipment or any mechanical, electromechanical, or electronic device, component, or machine, or any combination thereof, that is used remotely or directly in connection with gaming or any gaming device;
(4) "Associated equipment manufacturer or distributor," any person who designs, assembles, fabricates, produces, constructs, sells, leases, distributes, or otherwise prepares a product or component of any associated equipment;
(5) "Bet," an amount placed as a wager in a game of chance or on the results of a sporting event or a contingency during a sporting event or the performance or nonperformance of an athlete or competitor during a sporting event;
(6) "Blackjack," a card game played by a maximum of seven players in which each player bets against the dealer. The object is to draw cards whose value will equal or approach twenty-one without exceeding that amount and win bets, payable by the dealer, if the player holds cards more valuable than the dealer's cards;
(7) "Cheating," any attempt to alter the elements of chance, method of selection, or criteria that determines the:
(a) Result of a game;
(b) Amount or frequency of payment in a game;
(c) Value of a wagering instrument;
(d) Value of a wagering credit;
(e) Result of a sporting event or an event within a sporting event; or
(f) Performance or nonperformance of an athlete or competitor during a sporting event;
(8) "Cheating device," any computerized, electronic, electrical, or mechanical device, or any software or hardware, or any combination thereof, that is designed, constructed, altered, or programmed to obtain an advantage at playing any game or placing any bet that is offered by a licensee, including a device that:
(a) Projects the outcome of the game or bet;
(b) Keeps track of cards played or cards prepared for play in the game;
(c) Tracks play and analyzes the probability of the occurrence of an event relating to the game or bet; or
(d) Tracks play and analyzes the strategy for playing or betting to be used in the game except as may be made available as part of an approved game or otherwise permitted by the commission;
(9) "City limits," the boundaries of the city of Deadwood as they existed on January 1, 1989;
(10) "Collegiate sporting event," an athletic competition or event between two or more colleges or universities;
(11) "Commission," the South Dakota Commission on Gaming;
(12) "Craps," a game in which the players place bets on the outcome of the roll or series of rolls of a pair of dice;
(13) "Fraudulent scheme," a dishonest or deceptive plan or arrangement used or intended to be used to play a game or slot machine or place a bet, that gives any person an advantage when playing a game or slot machine, or placing a bet;
(14) "Fraudulent technique," a dishonest or deceptive procedure or method of playing a game or slot machine, or placing a bet that gives any person an advantage when playing a game or slot machine, or placing a bet;
(15) "Gaming," limited card games, slot machines, craps, roulette, keno, and wagering on sporting events, as allowed and regulated by this chapter;
(16) "Gaming device," a poker table, a blackjack table, a slot machine, a craps table, a roulette table, or a keno number selection device;
(17) "Gaming employee," any person twenty-one years of age or older employed by an operator, retailer hosting gaming, or sports wagering services provider, who works directly with the gaming portion of that business and who must hold a support license;
(18) "Gaming equipment," any equipment used in gaming that is allowed by this chapter and which requires licensing;
(19) "Gaming license," any license issued by the commission pursuant to this chapter which authorizes any person to engage in gaming within the city of Deadwood;
(20) "Gaming property owner," any person other than a licensed retailer who owns real property where licensed gaming is conducted within the city of Deadwood. The term, gaming property owner, does not include any person who owned real property where licensed gaming was conducted within the city of Deadwood prior to January 1, 2010;
(21) "Historic restoration and preservation," the restoration and preservation of the city of Deadwood to maintain its historical background, cultural heritage, and necessary supporting infrastructures;
(22) "International sporting event," an international team or individual sporting event governed by an international sports federation or sport's governing body, including sporting events governed by the International Olympic Committee and the International Federation of Association Football;
(23) "Keno," a game in which players place bets by marking their selections on a blank ticket form with eighty numbered selection boxes and the outcome is determined by a number selection device;
(24) "Key employee," any executive, employee, or agent of a gaming licensee having the power to exercise a significant influence over a decision concerning any part of the operation of a gaming licensee;
(25) "Licensed gaming establishment," any premises licensed pursuant to this chapter where gaming is conducted;
(26) "Licensee," any person licensed under this chapter;
(27) "Licensing authority," the South Dakota Commission on Gaming;
(28) "Limited card games," any card games, including poker, blackjack, and variations of poker and blackjack, that are authorized by this chapter and regulated by the commission;
(29) "Minor league sporting event," a sporting event conducted by a sports league that has not been classified by the commission as a premier league in the sport;
(30) "Net municipal proceeds," the amount remitted to the city of Deadwood by the South Dakota Commission on Gaming;
(31) "Operator," any person who places poker tables, blackjack tables, slot machines, craps tables, roulette tables, keno number selection devices, or accepts or redeems bets, in the person's own business premises;
(32) "Poker," a card game played by players who are dealt cards by a nonplayer dealer. The object of the game is for each player to bet the superiority of the player's own hand and win the other players' bets by either making a bet no other player is willing to match or proving to hold the most valuable cards after all the betting is over. Poker includes draw, stud, low ball, or any combination thereof;
(33) "Professional sporting event," a sporting event, other than a minor league sporting event, in which two or more persons participate and receive remuneration in excess of their out-of-pocket expenses for participating in the event;
(34) "Retailer," any licensee who maintains gaming at the licensee's place of business within the city of Deadwood for use and operation by the public;
(35) "Retail space," the area where the retailer's business is principally conducted;
(36) "Roulette," a game in which players place bets on a single number or a range of numbers or the colors red or black or whether the number is odd or even or a combination thereof and the winning numbers and color are determined by a ball which is spun on a wheel;
(37) "Route operator," any person who, individually or jointly pursuant to an agreement whereby consideration is paid to accept or redeem bets or for the right to place poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device, engages in the business of accepting or redeeming bets or placing and operating poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device within the city of Deadwood;
(38) "Slot machines," any mechanical, electrical, or other device, contrivance, or machine which, upon insertion of a coin, token or similar object, or upon payment of any consideration whatsoever, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash premiums, merchandise, tokens, redeemable game credits or anything of value other than unredeemable free games whether the payoff is made automatically from the machines or in any other manner;
(39) "Slot machine manufacturer or distributor," any person who designs, assembles, fabricates, produces, constructs, sells, leases, distributes, or otherwise prepares a product or a component part of a slot machine, other than tables or cabinetry;
(40) "Sporting event," a contest or competition between individuals or teams the results of which are determined at least in part by the skill or ability of an individual athlete or competitor or a team which is competing in the event;
(41) "Sporting event official," any official as recognized by the respective sport’s governing body;
(42) "Sports wagering area," the designated location in a gaming establishment approved by the commission, in which sports wagering may be conducted;
(43) "Sports wagering services provider," a person who maintains or operates the software or hardware of a sports wagering system or facilitates wagering on a sporting event by providing a service, including data aggregation, risk management, computer service, furnishing information, and setting of odds;
(44) "Suitability" or "suitable," in relation to a person is the ability to be licensed by the commission and as to acts or practices, are lawful acts or practices;
(45) "Unsuitability" or "unsuitable," in relation to a person is the inability to be licensed by the commission because of prior acts, associations, or financial condition, and as to acts or practices, are those that would violate the statutes or rules or would be contrary to the declared legislative purpose of this chapter;
(46) "Wagering on sporting events" or "sports wagering," the acceptance of a wager on an authorized sporting event by any system of wagering authorized by the commission.
Source: SL 1989, ch 374, § 3; SL 1990, ch 343, § 11; SL 1993, ch 320, § 4 rejected by referendum held September 14, 1993; SL 1993, ch 321, § 1; SL 1994, ch 351, § 100; SL 1995, ch 245, § 1; SL 1997, ch 243, §§ 1, 2; SL 2010, ch 212, § 1; SL 2015, ch 218, § 3; SL 2016, ch 212, § 1; SL 2018, ch 256, § 1; SL 2019, ch 192, §§ 1, 2; SL 2021, ch 189, § 2.
42-7B-5. Disposition of proceeds.
The entire net municipal proceeds of gaming shall be devoted to the historic restoration and preservation of the city of Deadwood as provided in this chapter. The term, historic restoration and preservation, shall be interpreted liberally in scope and effect.
Source: SL 1989, ch 374, § 4; SL 2021, ch 189, § 3.
42-7B-6. South Dakota Commission on Gaming created.
There is hereby created the South Dakota Commission on Gaming. The commission is attached to the Department of Revenue for reporting purposes only. The commission shall consist of five citizens of South Dakota, all of whom shall be appointed by the Governor of the State of South Dakota. The commission members may not all be members of the same political party. No member may be a license holder under this chapter nor a resident of Lawrence county. The initial members to be appointed shall draw lots to determine who will hold the two three-year terms, the two two-year terms and the one one-year term. Thereafter, each member shall serve terms of three years. No person may serve more than two consecutive full terms.
Source: SL 1989, ch 374, § 5; SL 2003, ch 272 (Ex. Ord. 03-1), § 28; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
42-7B-7. Promulgation of rules--Enforcement of chapter.
The commission may promulgate rules, pursuant to chapter 1-26, for the orderly transaction and conduct of its business and the substantive rules that it may determine proper concerning:
(1) The issuance, revocation, and suspension of gaming licensees;
(2) The division of limited card games, slot machines, craps, roulette, keno, or devices used to accept or redeem bets, that may be placed in any building or retail business;
(3) The conduct and operation of gaming;
(4) Variations of limited card games, craps, or roulette; and
(5) Any other things necessary to carry out the purposes of this chapter.
The commission may also promulgate rules necessary to administer complaints received from the public and conduct such other investigations and inspections into the conduct of the games and the licensees and the maintenance of the equipment as the commission deems necessary and proper. License issuance, suspension, and revocation are contested cases within the meaning of chapter 1-26. The commission's rules may provide procedures for summary suspension of any license issued under this chapter and shall provide for subsequent contested case hearings before suspensions become final or a license is revoked. The commission may apply for injunctive or declaratory relief to enforce the provisions of this chapter and any rules promulgated thereunder. Action by the commission may not limit the authority of the state's attorney or attorney general from enforcing criminal actions.
Source: SL 1989, ch 374, § 6; SL 2015, ch 218, § 4; SL 2016, ch 212, § 2; SL 2021, ch 189, § 4.
42-7B-7.1. Commission may suspend gaming at its discretion.
The commission may suspend gaming after a disaster such as flood, fire, earthquake or in the event of war or national emergency, for such period of time, as in its discretion, it deems appropriate.
Source: SL 1990, ch 343, § 30.
42-7B-8. Regular and special meetings--Quorum--Cost of special meeting requested by person other than chair, two members, or Governor.
The commission may hold regular and special meetings at such times and places as it may deem convenient, but at least one regular meeting shall be held quarterly. A majority of the appointed members constitutes a quorum of the commission, and a special meeting may be called by the chair, by any two members, or the Governor. If a special meeting is called pursuant to the request of any other person, the actual costs of the special meeting including personnel costs incurred in making arrangements for the special meeting, preparation and mailing of notices of the special meeting, compensation and allowable expense reimbursement for commission members as established by § 42-7B-10, costs of the telecommunications systems, and rental of meeting space used for the special meeting, or a charge of one thousand dollars, whichever is greater, shall be made and assessed against the person who requested the special meeting.
Source: SL 1989, ch 374, § 7; SL 2009, ch 216, § 1.
42-7B-8.1. Purposes for executive or closed meetings.
In addition to the provisions of § 1-25-2, the commission may hold executive or closed meetings for any of the following purposes:
(1) Considering applications for licensing when discussing the background investigations or personal information;
(2) Meeting with gaming officials of other jurisdictions, the attorney general, the state's attorney of Lawrence County or law enforcement officials relating to possible criminal violations;
(3) Consulting with the executive secretary, employees, and agents of the commission concerning possible criminal violations;
(4) Deliberations after hearing evidence on an informal consultation or a contested case necessary to reach a decision; and
(5) Discussing business strategies, marketing, or pricing strategies of a licensee or an applicant for a license if public discussion may be harmful to the competitive position of the licensee or applicant for license or discussions with a licensee or an applicant for a license for the purposes of overseeing and defining gaming contracts pursuant to subdivision § 42-7B-11(1).
Source: SL 1990, ch 343, § 6.
42-7B-9. Appointment and removal of executive secretary--Duties--Salary.
The commission shall appoint, and may remove, an executive secretary who shall serve at the pleasure of the commission and who shall be responsible for the conduct of the commission's administrative matters and who shall devote full time and attention to the business of his office and may not pursue any other business or occupation. The commission shall set the annual salary of the executive secretary. The executive secretary may employ the persons that are necessary to operate the South Dakota Commission on Gaming.
Source: SL 1989, ch 374, § 8.
42-7B-9.1. Executive secretary's access to files and records.
The executive secretary may have access both physically and electronically to all files and records required to be maintained under chapters 23-5 and 23-6 and may contribute to those records.
Source: SL 1990, ch 343, § 2.
42-7B-10. Compensation for commission members--Expenses paid.
The members of the South Dakota Gaming Commission shall be paid mileage at the same rate as allowed for state employees. The commission shall receive per diem compensation and allowable expense reimbursement in an amount set pursuant to § 4-7-10.4 for all time actually spent while attending commission meetings. However, no per diem may be paid to commission members who are state employees. The per diem shall be paid by vouchers duly verified and approved by the executive secretary of the commission.
Source: SL 1989, ch 374, § 8A.
42-7B-11. Powers of commission.
The commission may promulgate rules pursuant to chapter 1-26 to enable the commission to:
(1) Issue licenses, oversee, and define the gaming contracts of the licensees. Any license issued pursuant to this chapter is conditioned upon a specific waiver of all state and federal constitutional or statutory rights of privacy regarding gaming equipment, the licensed premises, all books, papers, computers, and information storage devices of any kind wherever located;
(2) Inspect and examine without notice all premises where gaming is conducted or gaming devices or equipment are located, sold, distributed, or stored;
(3) Seize and remove without notice or hearing from the premises and impound any gaming equipment or supplies for the purpose of examination and inspection;
(4) At any time day or night, inspect, examine, and photocopy or remove and impound all papers, books, and records of applicants and licensees and require verification of income, and all matters affecting the enforcement of the provisions of this chapter;
(5) Contract for such legal counsel to advise it as it may choose;
(6) Suspend for cause any gaming license;
(7) Require any applicant for a license as an operator or a retailer to disclose any pecuniary interest in the applicant by any person;
(8) Carry out such duties as may be imposed upon the state as a result of a compact entered into under the authority of the federal Indian Gaming Regulatory Act, provided the cost of performance of such duties is adequately funded by payments made available to the commission under the compact;
(9) Permit the executive secretary to issue or deny support licenses;
(10) Grant a license with special conditions or a license for a limited period, or both;
(11) Establish a procedure for establishing the suitability or unsuitability of persons and acts or practices;
(12) Regulate the manufacture of gaming devices and equipment for exportation outside this state;
(13) Establish procedures and regulations relating to corporations, partnerships, limited liability companies, affiliated companies and affiliates including the issuance, revocation, and suspension of licenses, and procedures generally to regulate gaming activities;
(14) Permit the executive secretary to enter into contracts and memorandums of understanding with regulatory agencies of other states and countries for the purpose of conducting background investigations of applicants;
(15) Permit the executive secretary to approve the transfer of a license stamp between licensed operators;
(16) Permit the executive secretary to renew licenses issued by the commission, to approve additional retail licenses to a person who holds at least one retail license in good standing, and to approve the assignment of the locations of retail licenses in good standing, all subject to the approval of the commission at the commission's next regular meeting.
Source: SL 1989, ch 374, § 9; SL 1990, ch 343, § 12; SL 1993, ch 321, § 16; SL 1995, ch 245, § 2; SL 1997, ch 244, § 1; SL 2012, ch 205, § 1.
42-7B-12. Appeal of final action of commission--Denial of license not appealable.
Any person aggrieved by a final action of the commission may appeal the final action to the circuit court in accordance with the provisions of chapter 1-26, however any denial of an application for a license under § 42-7B-19 is not appealable.
Source: SL 1989, ch 374, § 10; SL 1990, ch 343, § 13; SL 2018, ch 256, § 4.
42-7B-13. Powers of attorney general pursuant to chapter.
The attorney general may exercise any authority of inspection and examination allowed in this chapter and may apply to the circuit court for enforcement of any provision of this chapter or rule promulgated pursuant to this chapter.
Source: SL 1989, ch 374, § 11.
42-7B-14. Maximum amount of bets.
The maximum amount of an initial bet or subsequent bet on all games subject to this chapter is one thousand dollars.
Source: SL 1989, ch 374, § 12; SL 1993, ch 320, §§ 5A, 5B, 5C rejected by referendum Sept. 14, 1993; Initiated Measure No. 1, approved Nov. 7, 2000, eff. Nov. 16, 2000; SL 2012, ch 206, § 1.
42-7B-15. Approval of rules for certain games.
A licensed gaming establishment shall obtain approval of its rules for blackjack, poker, craps, roulette, keno, and sports wagering from the commission and clearly post the approved rules within plain view of any applicable gaming table or area in which the gaming is offered for play.
Source: SL 1989, ch 374, § 13; SL 2015, ch 218, § 5; SL 2021, ch 189, § 5.
42-7B-16. Maximum number of gaming devices per license.
A full complement of gaming devices may not exceed thirty per retail license.
Source: SL 1989, ch 374, § 14; SL 1990, ch 343, § 14; SL 1993, ch 321, §§ 10C, 10F; SL 2015, ch 218, § 6.
42-7B-17. Responsibilities of operator.
Each operator is responsible to provide audit and security measures relating to gaming devices, as prescribed by this chapter and the commission. The operator shall insure gaming device specifications comply with those provisions set forth in this chapter and the rules of the commission.
Source: SL 1989, ch 374, § 15; SL 2015, ch 218, § 7.
42-7B-18. Identification of retail floor plan--Approval--License granted only to retailer--Location of devices.
The retail space of a licensee shall be identified by a physical layout within a building, called the retail floor plan. The retail floor plan showing the location of each gaming device shall be submitted to the commission at the time of application, and is subject to prior approval by the Deadwood City Commission. Approval is subject to gaming rules and those rules pertaining to public health, safety, good order and general welfare of the City of Deadwood. The retail gaming license may only be granted to the retailer. All gaming devices shall be located within the retail space of the business. The number of gaming devices may not exceed thirty per building.
Source: SL 1989, ch 374, § 16; SL 1990, ch 343, § 15; SL 1993, ch 320, § 7 rejected by referendum held September 14, 1993.
42-7B-19. Approval or disapproval of license.
The commission may approve or disapprove any application for license, depending upon whether it deems the applicant a suitable person to hold the license and whether it considers the proposed location suitable. An applicant for any license under this chapter has the burden of proving the applicant's qualifications, by clear and convincing evidence, to the satisfaction of the commission, and is required to submit to such investigation regarding the applicant's past conduct as may be required by the commission.
Source: SL 1989, ch 374, § 17; SL 1993, ch 321, § 3.
42-7B-19.1. Denial of application--Reapplication.
Any applicant for a license who has had his application denied by the commission may not reapply until at least one year has elapsed from the date of the denial. Any person who has been denied a license for a second time may not reapply until at least three years have passed since the date of the second denial.
Source: SL 1990, ch 343, § 7.
42-7B-19.2. Investigation of license applicant--Failure to allow.
In order to assist in determining the applicant's suitability pursuant to § 42-7B-19, the applicant shall be fingerprinted and such fingerprints shall be forwarded to the Federal Bureau of Investigation identification division for a national criminal records check. By signing and filing an application for a license, which is hereby made subject to the perjury laws of this state, the applicant authorizes the commission to obtain information from any source, public or private, in this or any other country regarding the background or conduct of the applicant or any of its stockholders, lenders, holders of evidence of indebtedness, underwriters, executives, officers, directors, partners, agents, or employees. The applicant's failure to allow investigation into his background or to disclose all information as requested by the commission is grounds for denial of the license.
Source: SL 1993, ch 321, § 4.
42-7B-20. Holding license by certain persons prohibited.
No officer, agent, or employee of the commission may hold a license under this chapter. No officer, agent, or employee of the law enforcement departments of Lawrence County, the City of Deadwood, or the State of South Dakota may hold a license under this chapter. This prohibition applies to the commission and all of its employees and all law enforcement officials and officers. No licensee may employ any person in any capacity directly related to the licensee's gaming activities while that person is in the employment of a law enforcement agency or the commission.
Source: SL 1989, ch 374, § 18.
42-7B-21. Application fee and form.
The commission may establish an application fee which includes the cost of investigation and administration and is nonrefundable. The amount of the application fee may vary with the type of license or game for which application is made and with the type of applicant. The application form promulgated by the commission shall include a waiver of any right of confidentiality and allow access to law enforcement records of this or any other state, the government of any foreign country, or any Indian tribe. The waiver of confidentiality extends to any financial or personnel record wherever maintained.
Source: SL 1989, ch 374, § 19; SL 2015, ch 218, § 8.
42-7B-22. Licenses--Fees--Renewal--Violation as felony.
The commission may issue the following types of licenses that are required to conduct gaming under this chapter:
(1) Slot machine manufacturer or distributor license. The license fee is one thousand dollars and thereafter an annual fee renewable July first of each year in the sum of two hundred fifty dollars. A slot machine manufacturer or distributor may not be licensed as a route operator, operator, or retailer;
(2) Operator license. The license fee is one thousand dollars and thereafter an annual fee renewable July first of each year of two hundred dollars;
(3) Retail license. The license fee is two hundred fifty dollars and thereafter an annual fee renewable July first of each year of one hundred dollars;
(4) Support license. The license fee is fifty dollars and thereafter an annual fee renewable January first of each year of twenty-five dollars. This license is required by all persons seeking employment in the field of gaming;
(5) Key employee license. The license fee is one hundred fifty dollars and thereafter an annual fee renewable January first of each year of seventy-five dollars;
(6) Route operator license. The license fee is one thousand dollars and thereafter an annual fee renewable July first of each year of two hundred dollars. Each route operator shall also hold a valid operator license;
(7) Gaming property owner license. The license fee is two hundred fifty dollars and thereafter an annual fee renewable July first of each year of one hundred dollars;
(8) Associated equipment manufacturer or distributor license. The license fee is five hundred dollars and thereafter an annual fee renewable July first of each year of two hundred fifty dollars; and
(9) Sports wagering services provider license. The license fee is two thousand dollars and thereafter an annual fee renewable July first of each year of two thousand dollars.
Conducting gaming without the appropriate license is a Class 6 felony.
Source: SL 1989, ch 374, § 20; SL 1990, ch 343, § 16; SL 1993, ch 320, § 8 rejected by referendum held September 14, 1993; SL 1995, ch 245, § 6; SL 1996, ch 257, § 1; SL 2010, ch 212, § 2; SL 2018, ch 257, § 1; SL 2021, ch 189, § 6.
42-7B-22.1. Licensing of key employee may be required--Grounds--Time limit for response from employee--Written request to review status as key employee.
If it is the judgment of the commission that the public interest will be served by requiring a key employee to be licensed, the commission shall serve notice of the determination upon the licensee who employs the key employee. The commission is not restricted by the title of the job performed by the key employee but may consider the functions and responsibility of the key employee in making its decision. Grounds for requiring licensing of a key employee include:
(1) Whether the key employee is new to the gaming industry, to the particular gaming establishment, the position, or the level of influence or responsibility which he has, and whether the commission has insufficient or outdated information concerning his character, background, reputation, or association; or
(2) Whether information has been received by the commission or the executive secretary which, if true, would constitute grounds for a finding of unsuitability.
The licensee shall, within thirty days following receipt of the notice of the commission's determination, present the application for licensing of the key employee to the commission or provide documentary evidence that the key employee is no longer employed by the licensee. Failure of the licensee to respond as required by this section is grounds for disciplinary action.
A person subject to application for licensing as a key employee as required by this section may request the commission, in writing, to review its determination of that individual's status within the gaming organization. If the commission determines that the person is not a key employee or that the public interest does not require his licensing as a key employee, he shall be allowed to withdraw his application and continue in his employment. The request of the key employee applicant for review of his status does not stay the obligation of the licensee to present the key employee's application within the thirty-day period prescribed by this section. The provisions of chapter 1-26 do not apply to this section.
Source: SL 1990, ch 343, § 29.
42-7B-23. Annual license stamp fee--Transfer of license stamp.
There is imposed a nonrefundable license stamp fee upon each gaming device located on a licensed premises. The annual fee for this stamp is two thousand dollars. The license stamp expires July first of each year. All license stamp fees shall be paid directly to the commission on forms adopted by the commission. The commission may approve the transfer of a license stamp to another gaming device or to another operator without requiring the payment of an additional fee.
Source: SL 1989, ch 374, § 21; SL 1993, ch 321, § 5.
42-7B-24. License revocable--Not transferable.
Any license that is issued under this chapter is revocable, is not transferable, and no person holding a license acquires any vested interest or property right in the license.
Source: SL 1989, ch 374, § 22.
42-7B-25. Qualifications for license as operator, gaming property owner, retailer, or provider.
Before any person is licensed as an operator, gaming property owner, route operator, retailer, or sports wagering services provider, the person shall show that the person is of good moral character, and if an individual, that the individual is at least twenty-one years of age.
Source: SL 1989, ch 374, § 23; SL 1993, ch 321, § 6; SL 1995, ch 245, § 7; SL 2010, ch 212, § 3; SL 2021, ch 189, § 7.
42-7B-25.1. Internal control procedure for particular licensee may be established.
The commission may establish an internal control procedure limited to a particular licensee including accounting procedures, reporting procedures, and personnel policies.
Source: SL 1990, ch 343, § 9.
42-7B-26. Repealed by SL 2012, ch 207, § 1.
42-7B-27. Employee support license--Qualifications.
Any person employed by a retail licensee, operator, route operator, sports wagering services provider, slot machine manufacturer or distributor, associated equipment manufacturer or distributor, or as a card dealer, floor supervisor, or other gaming employee as determined by the commission, shall have a current valid support license. Any person seeking a support license shall be a person of at least twenty-one years of age, and of good moral character. The commission may deny a support license to any person discharged for cause by any licensed gaming establishment in this or any other country.
Source: SL 1989, ch 374, § 25; SL 1995, ch 245, § 8; SL 2015, ch 218, § 9; SL 2021, ch 189, § 8.
42-7B-28. Gaming tax.
There is hereby imposed an eight percent gaming tax on the adjusted gross proceeds of gaming allowed by this chapter.
Source: SL 1989, ch 374, § 26; SL 1990, ch 344, § 1; SL 1991, ch 100, § 3; SL 1994, ch 331, § 1; SL 1995, ch 246, § 3.
42-7B-28.1. Additional tax on gaming proceeds.
In addition to the gaming tax imposed by § 42-7B-28, there is hereby imposed an additional one percent tax on the adjusted gross proceeds of gaming allowed by this chapter. The tax shall be paid to the commission and transferred to the general fund on a monthly basis notwithstanding the provisions of §§ 42-7B-48 and 42-7B-48.1.
Source: SL 2009, ch 217, § 1.
42-7B-28.2. Calculation of adjusted gross proceeds.
When calculating adjusted gross proceeds for the purpose of applying the tax imposed by §§ 42-7B-28 and 42-7B-28.1:
(1) Free play value provided by the operator is not included in the gross proceeds;
(2) Cash prizes deducted are adjusted to not include an amount equal to ninety percent of the free play value provided by the operator; and
(3) The federal excise tax on sports wagers imposed by 26 U.S.C. § 4401 (1982) is a deduction from the adjusted gross proceeds.
Source: SL 2015, ch 219, § 1; SL 2022, ch 162, § 1.
42-7B-29. Return and remittance--Forms furnished by secretary.
Not later than fifteen days following the end of each month, each gaming licensee shall make a return and remittance to the executive secretary on forms prescribed and furnished by the executive secretary. The executive secretary may grant an extension of not more than five days for filing a return and remittance. Unless an extension is granted, penalty or interest under § 42-7B-31 shall be paid if a return or remittance is not made on time.
Source: SL 1989, ch 374, § 26A; SL 1990, ch 343, § 18.
42-7B-30. Violations of taxation provisions punishable as felony or misdemeanor.
Any person who:
(1) Makes any false or fraudulent return in attempting to defeat or evade the tax imposed by this chapter guilty of a Class 6 felony;
(2) Fails to pay tax due under this chapter within thirty days from the date the tax becomes due is guilty of a Class 1 misdemeanor;
(3) Fails to file a return required by this chapter within thirty days from the date the return is due is guilty of a Class 1 misdemeanor;
(4) Violates either subdivision (2) or subdivision (3) two or more times in any twelve-month period is guilty of a Class 6 felony.
For purposes of this section "person" includes corporate officers having control, supervision of or charged with the responsibility for making tax returns or payments pursuant to this chapter.
Source: SL 1989, ch 374, § 26B.
42-7B-31. Failure to file--Penalties.
Any person required to file returns or reports under this chapter, who fails to file a return or report which includes all taxable transactions within fifteen days following the date the return or report is due is subject to an additional amount, assessed as a penalty, equal to fifteen percent of the tax or ten dollars whichever is greater. However, for reasonable cause shown, the executive secretary may reduce or eliminate such penalty. Any person subject to tax under this chapter who fails to pay the tax within the time prescribed is subject to an interest charge of two percent per month or part thereof for which the payment is late or five dollars whichever is greater. Penalty and interest are considered the same as tax for the purposes of collection and enforcement including liens, distress warrants and criminal violations. Any payment received for taxes, penalty, or interest is applied first to tax, beginning with the oldest delinquency, then to interest and then to penalty. The executive secretary may, upon application of the taxpayer, establish a maximum interest rate of thirty-six percent upon delinquent taxes if the executive secretary determines that the delinquent payment was caused by a mistake of law and was not caused by an intent to evade the tax.
Source: SL 1989, ch 374, § 26C; SL 1990, ch 343, § 18A.
42-7B-32. Suspension or revocation of license--Grounds--Reprimand or monetary penalty.
Any license granted pursuant to this chapter may be suspended or revoked for any cause that may have prevented its issuance, or for violation by the licensee, or any officer, director, agent, member, or employee of the licensee, of this chapter or any rule adopted by the commission or for conviction of a crime of moral turpitude or a felony, after notice to the licensee and a hearing, upon grounds determined adequate by the commission. In addition to revocation or suspension or in lieu of revocation or suspension, the commission may impose a reprimand or a monetary penalty for each offense not to exceed the following amounts:
(1) If the licensee is a slot machine manufacturer or distributor, two hundred fifty thousand dollars;
(2) If the licensee is an operator, associated equipment manufacturer or distributor, or a sports wagering services provider, one hundred thousand dollars;
(3) If the licensee is a retailer or gaming property owner, twenty-five thousand dollars;
(4) If the licensee is a key employee, five thousand dollars; and
(5) If the licensee has a support license, two thousand five hundred dollars.
Any monetary penalty received by the commission under this section shall be deposited in the gaming commission fund established by § 42-7B-48 and is to be used solely for the purposes prescribed by subdivision 42-7B-48(2) and is not subject to the provisions of subdivision 42-7B-48(3).
Source: SL 1989, ch 374, § 27; SL 1990, ch 343, § 27; SL 2010, ch 212, § 4; SL 2015, ch 220, § 1; SL 2019, ch 192, § 3; SL 2021, ch 189, § 9.
42-7B-33. Person involved as manufacturer, distributor, operator, retailer, gaming property owner, provider, key employee, or support licensee--Qualifications.
Any person, any stockholder owning five percent or more of any corporation or limited liability company, and any officer or director, or any partner in any partnership involved as a manufacturer, distributor, operator, retailer, gaming property owner, or sports wagering services provider, or key employee or support licensee involved with the conduct of gaming shall be:
(1) A person of good character, honesty, and integrity;
(2) A person whose prior activities, criminal record, reputation, habits, and associations do not pose a threat to the public interests of this state or to the control of the gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental to the conduct of gaming; and
(3) A person who has not entered a plea of guilty or nolo contendere to a felony charge or has not been convicted of a felony in this or any other jurisdiction, has not been found to have violated the provisions of this chapter or any rule adopted pursuant to this chapter, and has not knowingly made a false statement of material facts to the commission or its legal counsel.
Source: SL 1989, ch 374, § 28; SL 1990, ch 343, § 19; SL 1995, ch 245, § 9; SL 2010, ch 212, § 5; SL 2019, ch 192, § 4; SL 2021, ch 189, § 10.
42-7B-35. Age of participants--Violation as misdemeanor.
Any participant in any gaming shall be twenty-one years or older. No licensee may permit any person who is less than twenty-one years of age to participate in any gaming. A violation of this section by a participant is a Class 1 misdemeanor and a violation by a licensee is a Class 1 misdemeanor and may form the basis for revocation of a retail license.
Source: SL 1989, ch 374, § 30; SL 1990, ch 343, § 31; SL 2015, ch 218, § 10.
42-7B-36. Minimum payback value of credit.
The minimum payback value of one credit played on a slot machine shall be at least eighty percent of the value of the credit.
Source: SL 1989, ch 374, § 31; SL 1995, ch 245, § 10.
42-7B-37. Exemption from federal law.
Pursuant to section 2 of an act of Congress of the United States entitled "An Act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, designated 15 U.S.C. §§ 1171 to 1177, inclusive, and in effect January 1, 1989, the State of South Dakota acting by and through its elected and qualified members of its Legislature, does hereby, and in accordance with and in compliance with the provisions of section 2 of the act of Congress, declare and proclaim that it is exempt from the provisions of section 2 of that act of Congress of the United States as above mentioned, as regards gaming devices legally operated, used, repaired, stored, or transported within the state.
Source: SL 1989, ch 374, § 32; SL 1996, ch 258, § 1.
42-7B-38. Shipments of devices and machines deemed legal.
All shipments of gaming devices, including slot machines, into and within this state, the registering, recording, and labeling of which has been duly had by the manufacturer or dealer thereof in accordance with sections 3 and 4 of an act of Congress of the United States entitled "An Act to prohibit transportation of gambling devices in interstate and foreign commerce," approved January 2, 1951, designated as 15 U.S.C. §§ 1171 to 1177, inclusive, and in effect on January 1, 1989, shall be deemed legal shipments thereof, when transported into or within the state to any manufacturer, distributor, operator, retailer, or route operator legally licensed pursuant to this chapter or by compact.
Source: SL 1989, ch 374, § 33; SL 1995, ch 245, § 11; SL 1996, ch 258, § 2.
42-7B-39. Shipping records required to be maintained--Report by recipient--Transport out of state--Violation as felony.
Any slot machine manufacturer or distributor shipping a slot machine into the State of South Dakota shall maintain for a period of at least five years from the time of shipment, the following records: a copy of the shipping invoice including at least the destination and the serial number of each machine and a description of each machine. Any person within the State of South Dakota receiving a slot machine shall maintain for a period of at least five years from the time of receipt the following records: information showing at least the location of each machine, its serial number, and description. This report shall be completed and maintained regardless of whether the machine is received from a manufacturer or any other person. Any machine licensed pursuant to this chapter shall be licensed for a specific location and movement of the machine from that location shall be reported to the commission within twenty-four hours. If the machine is to be transported out of the State of South Dakota, the movement of the machine shall be recorded and maintained by the licensee for not less than five years from the time of movement. Possession of an unapproved device is a Class 6 felony. Any slot machine not in compliance with this chapter is declared contraband and may be summarily seized and destroyed after notice and hearing.
Source: SL 1989, ch 374, § 34; SL 1993, ch 321, § 9; SL 1997, ch 245, § 1.
42-7B-39.1. Shipping records delivered to commission.
Any person or custodian in possession of any records required to be maintained by § 42-7B-39 shall deliver the records to the commission or its executive secretary upon request.
Source: SL 1997, ch 245, § 2.
42-7B-39.2. Destruction of seized slot machine.
Any slot machine seized pursuant to the provisions of § 42-7B-39 may be destroyed after notice and without hearing if the person from whom the slot machine was seized fails to appear at the time and place scheduled in the hearing notice.
Source: SL 2015, ch 220, § 2.
42-7B-40. Licensed employee twenty-one years or older required on premises.
Any retail licensee under this chapter shall have at least one licensed employee that is at least twenty-one years of age on the premises or within a contiguous premises in full view and control of any gaming operated on the premises. The commission shall adopt rules, pursuant to chapter 1-26, to establish the number of employees required to monitor the premises. The rules may also authorize the use of electronic devices or other types of monitoring equipment.
Source: SL 1989, ch 374, § 35; SL 1995, ch 245, § 12; SL 1998, ch 263, § 1; SL 2015, ch 218, § 11.
42-7B-41. False statement or records--Failure to keep books and records--Violations as felony.
Any person who knowingly makes a false statement in any application for a license or in any statement attached to the application, fails to keep books and records to substantiate the receipts, expenses, or uses resulting from gaming conducted under this chapter as prescribed in rules promulgated by the commission, or who falsifies any books or records so as the books or records relate to any transaction connected with the holding, operating, and conducting of any gaming is guilty of a Class 6 felony.
Source: SL 1989, ch 374, § 36; SL 1993, ch 321, § 10; SL 1995, ch 245, § 13; SL 2021, ch 189, § 11.
42-7B-42. Unlawful acts by participants--Felony.
It is unlawful for any person playing or conducting any authorized game of chance, conducted by a licensee to:
(1) Use bogus or counterfeit chips, tokens, devices, coins, tickets, cards, dice, roulette balls, or any other item of artificial value;
(2) Employ or have on one's person any cheating device to facilitate cheating in any game of chance;
(3) Use any fraudulent scheme or technique; or
(4) Have located on the premises equipment for gaming that is not licensed by the commission pursuant to this chapter except any equipment exempted by the commission, this chapter, or other statutes.
A violation of this section is a Class 5 felony.
Source: SL 1989, ch 374, § 37; SL 1990, ch 343, § 20; SL 1995, ch 245, § 14; SL 2015, ch 218, § 12; SL 2018, ch 256, § 2.
42-7B-43. Slot machines and wagering equipment--Security and audit specifications.
All slot machines, associated equipment, and devices or equipment to conduct sports wagering, allowed under this chapter, shall have the security and audit specifications established in rules adopted by the commission.
Source: SL 1989, ch 374, § 38; SL 1990, ch 343, § 21; SL 2018, ch 256, § 3; SL 2021, ch 189, § 12.
42-7B-44. Expenditure of public funds for purchase of certain machines--Proceeds--Placement.
The City of Deadwood may expend public funds for the purchase of five-cent or less slot machines and may own or lease no more than fifty five-cent or less slot machines to be placed within the city. The machines shall be licensed and stamped by the commission; however, no license stamp fee applies to these machines. The net proceeds generated by the operation of these machines minus lease or purchase payments shall be deposited in the South Dakota commission fund. The City of Deadwood may contract for these machines and these machines may only be placed in a retail licensed business.
Source: SL 1989, ch 374, § 39; SL 1990, ch 343, § 22; SL 2009, ch 218, § 1.
42-7B-45. Extension of credit prohibited--Violation as felony.
No licensed gaming establishment, licensee acting within the scope of employment as a licensee, or employee of a licensed gaming establishment acting within the scope of the employee's employment may extend credit to another person for participation in gaming. A violation of this section is a Class 6 felony.
Source: SL 1989, ch 374, § 40; SL 1995, ch 245, § 16; SL 2021, ch 189, § 13.
42-7B-46. Historic restoration and preservation fund created.
There is hereby created within the City of Deadwood a special fund to be known as the historic restoration and preservation fund. The Deadwood city commission shall appropriate amounts from this fund, remaining in any fiscal year after provision for the requirements of any revenue bonds issued under § 42-7B-54, to the Historic Preservation Commission established pursuant to chapter 1-19B which may expend those funds for loans, grants and purchases in the manner and for the purposes set out in chapter 1-19B and according to standards established by the State Historical Society Board of Trustees.
Source: SL 1989, ch 374, § 41; SL 1990, ch 344, § 2.
42-7B-47. Gaming exempt from certain statutes.
Gaming is exempt from §§ 53-9-2, 22-25-13, and 22-25-14 and all other acts in conflict with this chapter.
Source: SL 1989, ch 374, § 42; SL 2021, ch 189, § 14.
42-7B-48. South Dakota Gaming Commission fund established--Disbursements.
There is established within the state treasury the South Dakota Gaming Commission fund, into which shall be deposited the proceeds from the gaming tax, license stamp fees, license fees, application fees, the net proceeds generated by the operation of the five-cent slot machines, and the initial fund is continuously appropriated for the purposes specified in this section. All funds received by the commission shall be set forth in an informational budget as described in § 4-7-7.2 and be annually reviewed by the Legislature. Any disbursement from the Gaming Commission fund shall be by authorization of the executive secretary for any of the following purposes:
(1) Forty percent of the gaming tax collected shall be transferred to the tourism promotion fund created in § 1-52-17, and ten percent of the gaming tax collected shall be paid to Lawrence County;
(2) The expenses of the commission for administration and operation including litigation and enforcement of this chapter and chapter 42-7 and for grants as provided by § 42-7B-48.3; and
(3) All funds remaining after the payments provided in subdivisions (1) and (2), less one hundred thousand dollars which shall be transferred to the historical preservation loan and grant fund created in § 1-19A-13.1 constitute the net municipal proceeds and shall be disbursed at least quarterly to the City of Deadwood for deposit in the historic restoration and preservation fund.
Source: SL 1989, ch 374, § 43; SL 1991, ch 349, § 38; SL 1993, ch 320, § 12 rejected by referendum held September 14, 1993; SL 1994, ch 332, § 1; SL 2006, ch 222, § 2.
42-7B-48.1. Distribution of funds following payment to City of Deadwood.
Disbursements from the Gaming Commission fund shall be as set forth in § 42-7B-48 until such time as the net municipal proceeds paid to the City of Deadwood equals six million eight hundred thousand dollars for each year, and after payment of commission expenses pursuant to subdivision 42-7B-48(2), and after payment of one hundred thousand dollars to the State Historical Preservation Grant and Loan fund pursuant to subdivision 42-7B-48(3). Thereafter, all remaining funds shall be distributed as follows:
(1) Seventy percent to the state general fund;
(2) Ten percent to be distributed to municipalities in Lawrence County, except the City of Deadwood, pro rata according to their population;
(3) Ten percent to be distributed to school districts, pro rata based upon the previous year's average daily membership, located in whole or in part, in Lawrence County. For any school district located only partly in Lawrence County, only that portion of the district's average daily attendance which represents students residing in Lawrence County shall be considered in calculating the proration required by this subdivision; and
(4) Ten percent to the City of Deadwood for deposit in the historic restoration and preservation fund.
Source: SL 1995, ch 246, § 1; SL 2021, ch 49, § 17.
42-7B-48.2. General state aid to school districts reduced by payments from Gaming Commission fund.
Payments received by a school district in accordance with subdivision 42-7B-48.1(3), shall reduce on a dollar for dollar basis any general state aid otherwise payable to the school district. However, no state aid payments received by a school district pursuant to §§ 13-13-82 and 13-13-83 may be included in that reduction.
Source: SL 1995, ch 246, § 2; SL 2008, ch 79, § 4.
42-7B-48.3. Gaming addiction treatment and counseling program grants from Gaming Commission fund.
The commission may grant an amount not to exceed thirty thousand dollars each fiscal year from the Gaming Commission fund to the Department of Social Services to fund gaming addiction treatment and counseling programs in the state.
Source: SL 2006, ch 222, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 163, eff. Apr. 12, 2011.
42-7B-49. Acceptance and expenditure of funds by commission.
The South Dakota Gaming Commission may accept and expend for the purpose of this chapter and chapter 42-7, in addition to the amount in SL 1989, ch 374, § 43A, any funds obtained from federal sources, gifts, contributions, or any other source if such acceptance and expenditure is approved in accordance with § 4-8B-10.
Source: SL 1989, ch 374, § 43B; SL 1991, ch 349, § 39.
42-7B-50. Payment of expenditures.
Expenditures authorized by this chapter and chapter 42-7 shall be paid on warrants drawn by the state auditor on vouchers approved by the executive secretary of the South Dakota Gaming Commission.
Source: SL 1989, ch 374, § 43C; SL 1991, ch 349, § 40.
42-7B-52. Taxes and fees to support identified entities.
Notwithstanding any other provision of law to the contrary, the taxes and fees provided in this chapter shall go into effect to support the entities identified in this chapter.
Source: SL 1989, ch 374, § 43E.
42-7B-53. Statement of public policy--Equipment not subject to certain exclusive agreements.
It is the public policy of this state that gaming equipment authorized and approved by the commission may not be subject to any exclusive agreements entered prior to March 15, 1989.
Source: SL 1989, ch 374, § 43F.
42-7B-54. Anticipatory revenue bonds.
The City of Deadwood may issue revenue bonds in anticipation of the receipt of net municipal proceeds as provided in subdivision 42-7B-48(3). The proceeds of the sale of such revenue bonds shall be deposited in the Deadwood historic restoration and preservation fund and used for the purposes thereof. The revenue bonds shall be payable solely from the net municipal proceeds, and the city shall, in the ordinance or resolution authorizing the revenue bonds, irrevocably pledge and appropriate so much of the net municipal proceeds received by the city as may be necessary for the payment of the revenue bonds and the restoration of any reserves established in connection with the bonds. The principal amount of any issue of revenue bonds may not exceed the sum of the estimated capital needs of the historic restoration and preservation fund for the current and next three succeeding fiscal years of the city, a debt service reserve fund not exceeding the maximum annual debt service on the issue, the premium for bond insurance or other credit enhancement for the issue and the estimated cost of issuance of the revenue bonds. The revenue bonds shall be authorized, issued and sold as provided in chapter 6-8B, except that no election is required to authorize the issuance of the bonds.
Source: SL 1990, ch 344, § 3; SL 2021, ch 49, § 18.
42-7B-55. Certain gambling statutes not applicable.
Sections 21-6-1, 21-6-2, and 53-9-2 do not apply to authorized gaming and lotteries.
Source: SL 1990, ch 343, § 1.
42-7B-56. Appointment of commission employee as law enforcement officer.
The commission may appoint an employee to be a law enforcement officer pursuant to § 23-3-27. Any person appointed as a law enforcement officer under this section shall qualify, become certified and remain certified pursuant to law. The commission may revoke the appointment at any time.
Source: SL 1990, ch 343, § 3.
42-7B-57. Commission use of unmarked vehicles.
The commission may exempt certain of its motor vehicles from the provisions of §§ 32-5-43 and 32-5-44 in order to provide unmarked vehicles to its employees and agents.
Source: SL 1990, ch 343, § 4.
42-7B-58. Records--Confidentiality--Exception for official purposes and tax purposes.
Information and records of the Commission on Gaming enumerated by this section are confidential and may not be disclosed except pursuant to a court order. No person may use a subpoena, discovery, or other applicable statutes to obtain such information or records. Information and records considered confidential include:
(1) Tax returns of individual licensees;
(2) Applications, credit, medical, and security reports of applicants for licensees and other persons seeking or doing business with the commission;
(3) Marketing, financial, or sales data the disclosure of which may be harmful to the competitive position of Deadwood gaming, its retailers, licensees, or persons seeking or doing business with the commission;
(4) Audit work papers, worksheets, and auditing procedures used by the commission, its agents, or employees; and
(5) Information gathered pursuant to § 42-7B-9.1.
This section does not apply to requests for such information or records from the Governor; attorney general; the state's attorney of Lawrence County; officers, employees, or legal representatives of the Department of Revenue for the purpose of and only to the extent necessary in the investigation and audit procedures authorized by Title 10; law enforcement officers of any other municipality or state or federal agency or department for a law enforcement activity if the head of that agency or department requesting such information makes a written request to the executive secretary specifying the particular information requested and specifying the law enforcement activity for which the information is sought; or the use of such information or records by the executive secretary or commission for official purposes.
This section may not be construed to make confidential the aggregate tax collections during any reporting period, the names and businesses of licensees, or figures showing the aggregate amount of money bet during any reporting period.
Source: SL 1990, ch 343, § 5; SL 1992, ch 70, § 3; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
42-7B-59. Certain communications between commission and secretary privileged and confidential.
Communications between the commission and the executive secretary relating to licensing, disciplining of licensees, or violations by licensees are privileged and confidential if made lawfully and in the course of and in furtherance of the business of the commission on gaming, except pursuant to court order after an in-camera review. The executive secretary, the commission, or any member of the commission may claim this privilege.
Source: SL 1990, ch 343, § 8.
42-7B-60. Exclusion or ejection of certain persons from gaming establishments necessary.
The Legislature hereby declares that the exclusion or ejection of certain persons from licensed gaming establishments is necessary to carry out the policies of this chapter and to maintain effectively the strict regulation of licensed gaming.
Source: SL 1990, ch 343, § 24.
42-7B-61. List of persons to be excluded--Entrance in violation as misdemeanor--Penalty for failure to exclude or eject persons on list.
The commission may, by rules promulgated pursuant to chapter 1-26, provide for the establishment of a list of persons who are to be excluded or ejected from any licensed gaming establishment, including any person whose presence in the establishment is determined to pose a threat to the interest of the State of South Dakota or to licensed gaming, or both. In making the determination for exclusion, the commission may consider any of the following:
(1) Prior conviction of a felony, a misdemeanor involving moral turpitude, or a violation of the gaming laws of any state, the United States, any of its possessions or territories including Indian tribes;
(2) A violation, attempt to violate or conspiracy to violate the provisions of this chapter relating to the failure to disclose an interest in a gaming establishment for which the person must obtain a license or make disclosures to the commission; or intentional evasion of fees or taxes;
(3) Notorious or unsavory reputation that would adversely affect public confidence and trust that the gaming industry is free from criminal or corruptive influences; or
(4) Conduct that would adversely affect public confidence that gaming is conducted honestly.
Any person who has been placed on the list of excluded persons by the commission, after July 1, 2014, who enters a licensed gaming establishment after receiving notice as required by § 42-7B-62, is guilty of a Class 1 misdemeanor.
The commission may suspend, revoke, or penalize a licensee or licensed gaming establishment as set forth in § 42-7B-32, after notice and hearing pursuant to chapter 1-26, if that establishment or any licensee affiliated with the licensed gaming establishment knowingly fails to exclude or eject from the premises of the licensed establishment any person placed on the list of persons to be excluded.
Source: SL 1990, ch 343, § 25; SL 2014, ch 207, § 1.
42-7B-62. Notice to excluded person.
If the name and description of any person is placed on the exclusion list, the commission shall serve notice of that action upon the person by at least one of the following means:
(1) By personal service;
(2) By certified or registered mail to the last known address of the person; or
(3) By publication in an official newspaper in Lawrence County, South Dakota.
A person place upon the exclusion list may contest that action by filing a written protest with the commission and the protest shall be heard by the commission as a contested case pursuant to chapter 1-26.
Source: SL 1990, ch 343, § 26; SL 1991, ch 24, § 17.
42-7B-64. "Gaming contract" defined.
For the purposes of this chapter, a gaming contract is any contract between licensees, and also a contract between a licensee and a nonlicensee which directly or indirectly relates to the employment of licensed personnel, which relates to the acquisition or use of capital assets used by the licensee in the business of gaming, or which relates to the earnings or profits of the licensee from the business of gaming, or any other contract which affects the proprietary or financial interest of the licensee's gaming business or gaming license.
Source: SL 1993, ch 321, § 2.
42-7B-65. Copy of any process or pleading to the commission.
A licensee shall deliver a copy of any process or pleading from any jurisdiction in which the licensee is a party to the commission within thirty days of being served by or upon them. This requirement includes any agency or regulatory proceeding in which the licensee is a party.
Source: SL 1993, ch 321, § 11.
42-7B-66. Copies of all proposed gaming contracts to the executive secretary.
A person shall submit copies of all proposed gaming contracts to the executive secretary. The executive secretary or the commission may approve or deny gaming contracts and require changes in the contracts before participation by the licensee is allowed. The executive secretary or the commission may require a licensee to terminate participation in a gaming contract.
Source: SL 1993, ch 321, § 12.
42-7B-67. Notification by licensee of involvement in gaming operations out of state or on any Indian reservation.
Any licensee who intends to become involved in gaming operations outside of the State of South Dakota or on any Indian reservation located in whole or in part in the State of South Dakota shall notify the commission in writing of that licensee's intention to engage in such additional gaming operations and gaming business. Notification shall be mailed or delivered to the commission simultaneously with that licensee's application to the foreign state or applicable Indian authority. The executive secretary and the commission may impose all sanctions otherwise authorized by this chapter on any licensee who fails to comply with the provisions of this section.
Source: SL 1993, ch 321, § 13.
42-7B-68. Fees for publication and reports.
The commission may charge a fee for copies of publications and reports provided to the public and for the costs of mailing and distribution at a rate set by the commission.
Source: SL 1993, ch 321, § 14.
42-7B-69. Manufacture of gaming devices or equipment for exportation.
Any slot machine manufacturer who is licensed pursuant to this chapter may manufacture gaming devices or equipment for exportation outside this state subject to rules promulgated by the commission pursuant to chapter 1-26.
Source: SL 1993, ch 321, § 15.
42-7B-70. Provision applicable to manufacture of gaming devices and equipment for exportation.
The provisions of §§ 42-7B-37, 42-7B-38, and 42-7B-39 apply to the manufacture of gaming devices and equipment for exportation outside this state as authorized by the commission.
Source: SL 1993, ch 321, § 17.
42-7B-71. Provision of interlink communications service to slot machines--Not applicable in Deadwood.
A licensed manufacturer or distributor may supply a licensed operator with a communications service to interlink progressive slot machines and related equipment where such gaming is authorized by law, and may provide accounting, collection, and disbursement services relating to the prizes.
This section does not apply to gaming in the City of Deadwood and the provisions of this section are not intended to diminish or expand the authority of the commission to permit or regulate gaming in the City of Deadwood.
Source: SL 1994, ch 333.
42-7B-72. Lien for tax, penalty or interest due--Notice of tax lien filed with register of deeds--Priority.
Any tax, penalty, or interest due under this chapter is a lien in favor of the commission upon all property and rights to property whether real or personal belonging to the taxpayer. In order to preserve the lien against subsequent mortgages, purchasers, or judgment creditors for value and without actual notice of the lien on any property situated in a county, the commission may file with the register of deeds of the county a notice of the tax lien in such form as the commission determines. The priority of the lien shall be determined as of the date the notice of tax lien is received and indexed by the register of deeds. The notice of tax lien shall create a lien in each county where the notice of tax lien is recorded.
Source: SL 2013, ch 220, § 1, eff. Mar. 6, 2013.
42-7B-73. Distress warrant--Seizure and sale of personal property.
After a notice of lien has been filed as provided in § 42-7B-72, the commission may at any time require the county treasurer to issue a distress warrant in the manner provided in chapter 10-56. Immediately upon receipt of the warrant, the sheriff shall proceed to collect the tax, penalty, or interest due by seizure and sale of personal property as provided in chapter 10-56. The sheriff shall remit the amount collected to the county treasurer who shall remit the money to the commission. For such service, the sheriff may collect from the taxpayer and retain the compensation provided in chapter 10-56, but the sheriff's compensation may not be deducted from any tax, penalty, or interest collected.
Checking, savings, and similar accounts are personal property and are subject to seizure by the sheriff for the purpose of satisfying the distress warrant.
Source: SL 2013, ch 220, § 2, eff. Mar. 6, 2013.
42-7B-74. Personal liability of corporate officers, member-managers or managers of limited liability companies, or partners--Bond or certificate of deposit.
If a corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership subject to tax under this chapter fails for any reason to file the required returns or to pay the tax due, any of the corporate officers, member-managers or managers of limited liability companies, or partners of partnerships that control, supervise, or are charged with the responsibility of filing the returns or remitting tax payments shall be personally liable for the failure. The dissolution of a corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership does not discharge an officer, member-manager, manager, or partner's liability for a prior failure of the corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership to file a return or remit the tax due. The sum due for such a liability may be assessed and collected as provided by law.
If the corporate officers, limited liability company member-managers or managers, or partners elect not to be personally liable for the failure to file the required returns or to pay the tax due, the corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership shall provide the commission with a surety bond or certificate of deposit as security for payment of any tax that may become due. The bond or certificate of deposit provided for in this section shall be in an amount equal to the estimated annual taxes due under this chapter.
Source: SL 2013, ch 220, § 3, eff. Mar. 6, 2013.
42-7B-75. Cancellation or revocation of voluntarily surrendered license.
Any license granted pursuant to the provisions of this chapter which is voluntarily surrendered by the licensee may be cancelled or revoked without a hearing unless the licensee files a written request for a hearing within thirty days after receiving written notice of the revocation or cancellation from the commission.
Source: SL 2015, ch 220, § 3.
42-7B-76. Sports wagering receipts maintained separately.
The receipts from sports wagering shall be separately maintained and accounted for from all other moneys received from the operation of the licensed gaming establishment.
Source: SL 2021, ch 189, § 15.
42-7B-77. Advance deposit sports wagering--Account requirements.
Each operator or route operator that is authorized to conduct advance deposit sports wagering shall maintain an account at a state or federally chartered financial institution to hold patron deposits and payments made by the operator or route operator to the patrons for winning bets. This account shall not be used by the operator or route operator for any other purpose. This account is subject to review and audit by the commission at any time.
Source: SL 2021, ch 189, § 16.
42-7B-78. Advance deposit sports wagering--Establishing account--Duty to retain application--Application considered record.
A person who opens an account for advance deposit sports wagering with an operator or route operator shall establish the account in person at the operator's or route operator's licensed gaming establishment within the city of Deadwood using an application approved by the commission.
The operator or route operator shall retain the application that is used to open an account for advance deposit sports wagering, including any documents that are submitted with or reviewed with the application. The application and documents shall be considered records of the operator or route operator for purposes of this chapter.
Source: SL 2021, ch 189, § 17.
42-7B-79. Advance deposit sports wagering restrictions--Required equipment.
Any sports wagering may only be conducted on the premises of a licensed gaming establishment as approved by the commission within the city of Deadwood. Each operator or route operator that is authorized by the commission to conduct sports wagering shall install and maintain equipment that is approved by the commission to ensure that all bets are placed on the premises of a licensed gaming establishment as approved by the commission within the city of Deadwood.
Source: SL 2021, ch 189, § 18.
42-7B-80. Investigation conducted by sport's governing body.
With the approval of the commission, a licensee shall provide or facilitate providing betting information and audio or video files relating to sports wagering and otherwise cooperate with an investigation conducted by a sport's governing body. A licensee shall not share any information that will interfere with an ongoing criminal investigation.
Source: SL 2021, ch 189, § 19.
42-7B-81. Licensee's duty to report criminal or disciplinary proceeding--Commission may share information.
A licensee shall promptly report to the commission any criminal or disciplinary proceeding commenced against the licensee or any of its employees, where applicable, relating to sports wagering.
The commission may report any information received pursuant to this section to a sports team or sport's governing body if sharing the information will not interfere with an ongoing criminal investigation.
Source: SL 2021, ch 189, § 20.
42-7B-82. Betting prohibited on certain events.
A licensee may not accept a bet on any of the following events or contingencies:
(1) A high school sporting event;
(2) A minor league sporting event;
(3) The performance or nonperformance of any individual athlete participating in a single game or match of a collegiate sporting event; or
(4) Any individual game in a collegiate sporting event in which any team or athlete from a university or college in South Dakota is competing.
Source: SL 2021, ch 189, § 21.
42-7B-83. Certain persons prohibited from betting.
A licensee may not knowingly accept a bet on a sporting event from any of the following persons:
(1) Any athlete who is participating in the sporting event or who is a member of any team participating in the sporting event on which the bet is placed;
(2) Any person who holds a position of authority or influence sufficient to exert influence over the outcome of the sporting event on which the bet is placed, including a coach, a manager, an athletic trainer, a referee, an umpire, a judge, and any sporting event official;
(3) An employee of a sports wagering services provider;
(4) An agent or proxy for any person for the purposes of placing or redeeming the bet; or
(5) Any person who uses false identification when placing or redeeming a bet.
A violation of this section by the person who places the bet is a Class 6 felony. A violation of this section by a licensee is a Class 6 felony and may form the basis for disciplinary action against the license of any individual licensee involved in the transaction and operator of the facility at which the bet was accepted.
Source: SL 2021, ch 189, § 22.
CHAPTER 42-8
WATERCRAFT
42-8-1 Safety and uniformity as policy of state.
42-8-1.1 42-8-1.1. Transferred to § 32-3A-1
42-8-1.2 Governor authorized to prohibit or restrict use of certain waterways.
42-8-1.3 Notice of restriction or prohibition.
42-8-1.4 Violation of prohibition or restriction as misdemeanor.
42-8-2 Definition of terms.
42-8-2.1 "Underway" defined.
42-8-3 42-8-3. Transferred to § 32-3A-3
42-8-4 42-8-4. Repealed by SL 1984, ch 273, § 14; SL 1984, ch 279, § 3
42-8-5 42-8-5 to 42-8-7. Transferred to §§ 32-3A-4 to 32-3A-6
42-8-8 42-8-8. Repealed by SL 1991, ch 357, § 1
42-8-8.1 42-8-8.1 to 42-8-8.4. Transferred to §§ 32-3A-7 to 32-3A-10
42-8-9 42-8-9. Repealed by SL 1984, ch 273, § 15
42-8-10 42-8-10. Transferred to § 32-3A-11
42-8-11 42-8-11. Repealed by SL 1984, ch 279, § 8
42-8-12 42-8-12. Repealed by SL 1998, ch 74, § 10
42-8-13 42-8-13, 42-8-14. Repealed by SL 1993, ch 322, §§ 10, 11
42-8-15 42-8-15, 42-8-16. Transferred to §§ 32-3A-12, 32-3A-13
42-8-17 42-8-17. Repealed by SL 1984, ch 279, § 14
42-8-18 42-8-18 to 42-8-19. Transferred to §§ 32-3A-14 to 32-3A-16
42-8-20 42-8-20. Repealed by SL 1979, ch 280, § 5
42-8-21 42-8-21. Transferred to § 32-3A-17
42-8-22 42-8-22. Repealed by SL 1984, ch 273, § 18; SL 1984, ch 279, § 16
42-8-23 42-8-23. Transferred to § 32-3A-18
42-8-24 42-8-24 to 42-8-30.1. Repealed by SL 1989, ch 375, §§ 2 to 9
42-8-31 42-8-31. Repealed by SL 1972, ch 231, § 5
42-8-32 42-8-32 to 42-8-38. Repealed by SL 1984, ch 273, §§ 19 to 25
42-8-39 Waste treatment requirements for kitchen and toilet facilities--Violation as misdemeanor.
42-8-40 42-8-40. Repealed by SL 1984, ch 273, § 26
42-8-41 Boats--Required equipment--Penalty.
42-8-42 Muffler required--Use of cutouts prohibited--Racing boats excepted.
42-8-43 42-8-43. Repealed by SL 1984, ch 273, § 29
42-8-44 42-8-44. Repealed by SL 1984, ch 273, § 30; SL 1984, ch 279, § 19
42-8-44.1 Allowable area of operation of diver in underwater activity--Display and design of diver-down flag--Violation as misdemeanor.
42-8-44.2 Operation of boat or other surface activity in diver's allowable area prohibited--Violation as misdemeanor.
42-8-44.3 42-8-44.3. Repealed by SL 1991, ch 186, § 46
42-8-45 Operation of boat under influence of alcohol or drugs as misdemeanor.
42-8-45.1 Arrest without a warrant--Probable cause.
42-8-45.2 Submission to breath test upon accident or violation--Chemical test.
42-8-45.3 Lawful use of drug no defense.
42-8-45.4 Amount of alcohol in blood--Presumptions.
42-8-45.5 Competent evidence not limited.
42-8-45.6 Operation of boat on public waters as consent to be tested.
42-8-45.7 Persons authorized to take breath or other bodily substance specimen--Liability.
42-8-45.8 Testing to be done under supervision of arresting officer--Breath test by person possessing permit.
42-8-45.9 Choice of additional testing.
42-8-45.10 Availability of test results.
42-8-45.11 Costs of testing and witness expenses as costs in the action.
42-8-46 Reckless operation of boat as misdemeanor.
42-8-47 42-8-47. Repealed by SL 1977, ch 190, § 630
42-8-48 Waterskiing and surfboarding prohibited during hours of darkness--Violation as misdemeanor.
42-8-49 Two persons required in boat towing skis or aquaplane--Exception for wide angle mirror--Violation as misdemeanor.
42-8-50 Skiing requirements waived for exhibitions and regattas.
42-8-51 Operation to cause collision by skier or surfboarder prohibited--Violation as misdemeanor.
42-8-52 Tampering with or unlawful operation of boat as misdemeanor.
42-8-53 42-8-53. Repealed by SL 1984, ch 273, § 31
42-8-54 Application for permission for regatta, race or exhibition--Conducting unauthorized event as misdemeanor.
42-8-55 42-8-55. Repealed by SL 1984, ch 273, § 32
42-8-56 Operator of boat involved in accident to render assistance to other persons--Violation as misdemeanor.
42-8-57 Operator of boat involved in accident to reveal identification--Violation as misdemeanor.
42-8-58 Notice of accident to be filed with department--Investigation of accidents--Violation as misdemeanor.
42-8-59 42-8-59. Repealed by SL 1983, ch 303, § 7
42-8-60 Records maintained by owners of boats for hire--Preservation and inspection of records--Violation as misdemeanor.
42-8-61 42-8-61. Repealed by SL 2015, ch 210, § 5.
42-8-62 42-8-62. Transferred to § 32-3A-19
42-8-63 Application by political subdivision for special rules applicable therein.
42-8-64 42-8-64, 42-8-65. Repealed by SL 1984, ch 273, §§ 34, 35
42-8-66 Enforcement of chapter by law enforcement officers--Stopping and boarding of boats.
42-8-67 Boundary waters--Concurrent jurisdiction with adjoining states.
42-8-68 Sailboards exempt.
42-8-69 Age requirement for driving certain motorboats--Violation as misdemeanor.
42-8-70 42-8-70. Repealed by SL 1993, ch 322, § 19
42-8-71 42-8-71 to 42-8-74. Transferred to §§ 32-3A-20 to 32-3A-23
42-8-75 42-8-75. Repealed by SL 1993, ch 322, § 36
42-8-76 42-8-76 to 42-8-101. Transferred to §§ 32-3A-24 to 32-3A-49
42-8-102 Personal watercraft--Rules of operation--Age requirement--Violation as misdemeanor.
42-8-103 Summons issued for violation punishable as Class 2 misdemeanor--Release upon promise to appear in court or bond--Violation as misdemeanor.
42-8-1. Safety and uniformity as policy of state.
It is the policy of this state to promote safety for persons and property in and connected with the use, operation, and equipment of boats and to promote uniformity of laws relating thereto.
Source: SL 1959, ch 125, § 1; SDC Supp 1960, § 25.1401; SL 1994, ch 335, § 14.
42-8-1.2. Governor authorized to prohibit or restrict use of certain waterways.
The Governor or the Governor's designee may prohibit or restrict the recreational use or navigation of any portion of any river, stream, lake, or other public waterway within the boundaries of the state in order to protect the public peace, health, and safety.
Source: SL 1994, ch 334, § 1.
42-8-1.3. Notice of restriction or prohibition.
The Governor or the Governor's designee, upon issuing a prohibition or restriction on the recreational use of waterways pursuant to § 42-8-1.2, shall direct one or more appropriate state or local government agencies to provide notice to the public of the restriction or prohibition. The notice shall be provided in a manner to reasonably notify potential users of the restriction or prohibition in one or more of the following forms:
(1) Erection of suitable barriers to restrict public use;
(2) Posted warnings and notice of the restriction or prohibition;
(3) Declaration by the Governor or other state or local officials;
(4) Publication or broadcast of the restriction or prohibition by state and local news media; or
(5) Other emergency methods that will provide reasonable notification.
Source: SL 1994, ch 334, § 2.
42-8-1.4. Violation of prohibition or restriction as misdemeanor.
Any person who intentionally fails to observe or obey any prohibition or restriction issued and implemented pursuant to §§ 42-8-1.2 and 42-8-1.3 is guilty of a Class 2 misdemeanor.
Source: SL 1994, ch 334, § 3.
42-8-2. Definition of terms.
Terms used in this chapter mean:
(1) "Boat," every description of watercraft, other than a seaplane on the water, used or capable of being used as a means of transportation on water;
(1A) "Boat dealer," any person or business who in the ordinary course of business sells new large boats or any person or business who in the ordinary course of business sells five or more used large boats in a year;
(2) "Commission," the Game, Fish and Parks Commission of this state acting directly or through its authorized officers;
(2A) "Department," the Department of Revenue;
(2B) "Large boat," any boat over twelve feet in length or a motorboat, used or capable of being used as a means of transportation on water, except canoes, inflatable boats, kayaks, sailboards, and seaplanes;
(3) "Motorboat," any boat propelled by machinery, whether or not such machinery is the principal source of propulsion, but does not include a boat which has a valid marine document issued by the commissioner of customs of the United States government or any federal agency successor thereto;
(3A) "Notation," a physical or electronic process of recording a lien on a certificate of title, a manufacturer's statement of origin, or a manufacturer's certificate of origin.
(4) "Operate," to navigate or otherwise use a boat;
(5) "Owner," a person, other than a lien holder, having the property in or title to a boat. The term includes a person entitled to the use or possession of a boat subject to an interest in another person reserved or created by agreement and securing payment or performance of an obligation, but the term excludes a lessee under a lease not intended as security;
(5A) "Personal watercraft," any motorboat that has an inboard or outboard motor powering a water jet pump or caged propeller as its primary source of motive power and is designed to be operated by a person standing on, kneeling on, sitting astride, or being towed behind the watercraft, and has the probability that the operator and passengers may in the normal course of use, fall overboard;
(6) "Racing boat," any boat designed and manufactured exclusively for racing;
(7) "Sailboard," any single-hulled boat equipped with an articulating mast and designed to be operated by a person standing on the board, maneuvering through the trim of the hand-held sail and distributing his body weight on the board; and
(8) "Waters of this state," any public waters within the territorial limits of this state and all waters which form a common boundary between this state and Minnesota, North Dakota, Montana, Wyoming, Iowa, or Nebraska.
Source: SL 1959, ch 125, § 2; SDC Supp 1960, § 25.1402; SL 1981, ch 306, § 1; SL 1984, ch 279, § 1; SL 1993, ch 322, § 3; SL 1993, ch 323, § 1; SL 1994, ch 335, § 1; SL 1998, ch 171, § 5; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.
42-8-2.1. "Underway" defined.
For purposes of this chapter a boat is underway if, while upon the public waters, it is not at anchor, aground, or made fast to the shore.
Source: SL 1992, ch 306, § 2.
42-8-39. Waste treatment requirements for kitchen and toilet facilities--Violation as misdemeanor.
Every boat equipped with kitchen or toilet facilities shall be so equipped and operated to handle or treat liquid and solid wastes in a manner that will prevent pollution of the receiving waters. A violation of this section is a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 5; SDC Supp 1960, § 25.1405 (10); SL 1991, ch 186, § 43; SL 1994, ch 335, § 17.
42-8-41. Boats--Required equipment--Penalty.
No person may operate or give permission for the operation of a boat which is not equipped as required by rules adopted pursuant to § 32-3A-1. Neither the owner of a boat, nor the owner's agent or employee, may permit any motorboat or any boat to depart from the owner's premises unless it is provided, either by owner or renter, with the equipment required pursuant to such rules. A violation of this section is a Class 2 misdemeanor.
Source: SL 1959, ch 125, §§ 5, 7; SDC Supp 1960, §§ 25.1405 (13), 25.1407 (2); SL 1984, ch 273, § 27; SL 1994, ch 335, § 18; SL 2021, ch 186, § 7.
42-8-42. Muffler required--Use of cutouts prohibited--Racing boats excepted.
The exhaust of every internal combustion engine used on any motorboat shall be effectively muffled by equipment so constructed and used as to muffle the noise of the exhaust in a reasonable manner. The use of cutouts is prohibited, except for racing boats competing in a regatta or boat race approved as provided by rules adopted pursuant to § 32-3A-1, and for such racing boats while on trial runs, during a period not to exceed forty-eight hours immediately preceding a regatta or race and for motorboats while competing in official trials for speed records during a period not to exceed forty-eight hours immediately following a regatta or race. A violation of this section is a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 8; SDC Supp 1960, § 25.1408; SL 1984, ch 273, § 28; SL 2021, ch 186, § 8.
42-8-44.1. Allowable area of operation of diver in underwater activity--Display and design of diver-down flag--Violation as misdemeanor.
Any diver using a self-contained underwater breathing apparatus, a forced air breathing line system, a snorkel, or any other means of underwater air supply for the purpose of underwater activity, operating in the waters of this state, except in an area from which all motorboats or sailboats are prohibited from operating, shall perform the activity within an imaginary cylinder extending downward from an imaginary circle formed on the surface of the body of water by revolving a seventy-five foot radius three hundred sixty degrees about a point marked by the display of a flag as provided by this section. The flag is referred to as the diver-down flag. The diver-down flag shall be a rectangle with a bright red field crossed by a diagonal white strip running from the upper-left corner to the bottom-right corner of the rectangle and shall be clearly visible and securely attached or anchored to a float, a rubber tube, a diver, or a boat. A violation of this section is a Class 2 misdemeanor.
Source: SL 1969, ch 103, § 1; SL 1983, ch 303, § 3; SL 1991, ch 186, § 44; SL 1998, ch 264, § 1.
42-8-44.2. Operation of boat or other surface activity in diver's allowable area prohibited--Violation as misdemeanor.
No watercraft under power with an internal combustion engine may be operated within the surface area described by such circle as prescribed by § 42-8-44.1, nor may any waterskiing or surfboarding or other surface activity potentially dangerous to the diver be performed in the area described by the circle, except when the craft or activity are a part of or related to the diving activity. A violation of this section is a Class 2 misdemeanor.
Source: SL 1969, ch 103, § 2; SL 1991, ch 186, § 45; SL 1998, ch 264, § 2.
42-8-45. Operation of boat under influence of alcohol or drugs as misdemeanor.
No person may operate a boat as defined in subdivisions 42-8-2(2B), (3), (5A), or (6) while underway on the public waters of the state while:
(1) There is 0.08 percent or more by weight of alcohol in that person's blood as shown by chemical analysis of that person's breath, blood, or other bodily substance;
(2) Under the influence of an alcoholic beverage, marijuana, or any controlled drug or substance not obtained pursuant to a valid prescription, or any combination of an alcoholic beverage, marijuana, or such controlled drug or substance;
(3) Under the influence of any controlled drug or substance obtained pursuant to a valid prescription, or any other substance, to a degree which renders the person incapable of safely driving or operating such boat;
(4) Under the combined influence of an alcoholic beverage and any controlled drug or substance obtained pursuant to a valid prescription, or any other substance, to a degree which renders the person incapable of safely driving or operating such boat; or
(5) Under the influence of any substance ingested, inhaled, or otherwise taken into the body as prohibited by § 22-42-15.
Any violation of this section is a Class 1 misdemeanor.
Source: SL 1959, ch 125, § 9; SDC Supp 1960, § 25.1409 (2); SL 1977, ch 190, § 628; SL 1983, ch 303, § 1; SL 1992, ch 306, § 1; SL 2002, ch 160, § 5; SL 2012, ch 208, § 1.
42-8-45.1. Arrest without a warrant--Probable cause.
A law enforcement officer may, without a warrant, arrest a person for a violation of the provisions of § 42-8-45 if the officer has probable cause to believe that the person to be arrested has been involved in an accident on the public waters of the state and has violated the provisions of § 42-8-45 and that the violation occurred prior to or immediately following the accident.
Source: SL 1992, ch 306, § 3; SL 2012, ch 208, § 2.
42-8-45.2. Submission to breath test upon accident or violation--Chemical test.
Any person operating a boat while underway on the public waters of the state which has been involved in an accident or which is operated in violation of any of the provisions of this chapter shall, at the request of a law enforcement officer, submit to a breath test to be administered by the officer. If the test indicates that the person has consumed alcohol, the law enforcement officer may require the person to submit to a chemical test in the manner set forth in this chapter.
Source: SL 1992, ch 306, § 4.
42-8-45.3. Lawful use of drug no defense.
The fact that any person charged with a violation of § 42-8-45 is or has been prescribed a drug under the laws of this state is not a defense against any charge of violating § 42-8-45.
Source: SL 1992, ch 306, § 5; SL 2012, ch 208, § 3.
42-8-45.4. Amount of alcohol in blood--Presumptions.
In any criminal prosecution for a violation of § 42-8-45, the amount of alcohol in the defendant's blood at the time alleged as shown by chemical analysis of the defendant's blood, breath, or other bodily substance gives rise to the following presumptions:
(1) If there was at that time five hundredths percent or less by weight of alcohol in the defendant's blood, a presumption arises that the defendant was not under the influence of an alcoholic beverage;
(2) If there was at that time in excess of five hundredths percent but less than eight hundredths percent by weight of alcohol in the defendant's blood, such fact does not give rise to any presumption that the defendant was or was not under the influence of an alcoholic beverage, but such fact may be considered with other competent evidence in determining the guilt or innocence of the defendant; and
(3) If there was at that time eight hundredths percent or more by weight of alcohol in the defendant's blood, a presumption arises that the defendant was under the influence of an alcoholic beverage.
Percent by weight of alcohol in the blood is based upon milligrams of alcohol per 1.0 cubic centimeter of whole blood or 2100 cubic centimeters of deep lung breath.
Source: SL 1992, ch 306, § 6; SL 2002, ch 160, § 6; SL 2012, ch 208, § 4.
42-8-45.5. Competent evidence not limited.
The provisions of § 42-8-45.4 do not limit the introduction of any other competent evidence bearing upon the question whether or not the defendant was under the influence of an alcoholic beverage.
Source: SL 1992, ch 306, § 7; SL 2012, ch 208, § 5.
42-8-45.6. Operation of boat on public waters as consent to be tested.
Any person who operates a boat while underway on the public waters of the state in this state is considered to have given consent to the withdrawal of blood or other bodily substance and chemical analysis of the person's blood, breath, or other bodily substance to determine the amount of alcohol in the person's blood and to determine the presence of marijuana or any controlled drug or substance or any substance ingested, inhaled, or otherwise taken into the body as prohibited by § 22-42-15 or any other substance that may render a person incapable of safely operating a boat. The arresting law enforcement officer may, subsequent to the arrest of any operator for a violation of § 42-8-45, require the operator to submit to the withdrawal of blood or other bodily substances as evidence.
Source: SL 1992, ch 306, § 8; SL 2003, ch 168, § 3; SL 2012, ch 208, § 6.
42-8-45.7. Persons authorized to take breath or other bodily substance specimen--Liability.
Only a physician, laboratory technician, registered nurse, physician's assistant, phlebotomist, expanded role licensed practical nurse, medical technician, or medical technologist may withdraw blood for the purpose of determining the alcoholic content of the blood. This limitation does not apply to the taking of a breath or other bodily substance specimen. Such authorized persons, acting on the presumption of consent in § 42-8-45.6, and any hospital or facility employing such persons, are not liable and may not be held to pay damages to the party from whom the blood sample is withdrawn, if the withdrawal is administered with usual and ordinary care. No person authorized to withdraw blood under this section may be required or forced to withdraw blood for the purposes provided in this chapter, unless required pursuant to a written agreement.
Source: SL 1992, ch 306, § 9; SL 2012, ch 208, § 9.
42-8-45.8. Testing to be done under supervision of arresting officer--Breath test by person possessing permit.
To be considered valid under the provisions of this chapter, the withdrawal or chemical analysis shall be performed at the direction of a law enforcement officer having lawfully arrested the person for violation of § 42-8-45 and the chemical test analysis of the person's breath, if one is performed, shall have been performed according to methods approved by the director of laboratories and by an individual possessing a valid permit issued by the director of laboratories for this purpose. The director of laboratories may approve satisfactory techniques or methods to ascertain the qualifications and competence of individuals to conduct such analysis and issue permits which are subject to termination or revocation at the discretion of the director of laboratories.
Source: SL 1992, ch 306, § 10.
42-8-45.9. Choice of additional testing.
Any person tested pursuant to this chapter may have a physician, laboratory technician, registered nurse, physician's assistant, or medical technologist of the person's own choosing administer the chemical analysis in addition to the one administered at the direction of the law enforcement officer.
Source: SL 1992, ch 306, § 11; SL 2012, ch 208, § 7.
42-8-45.10. Availability of test results.
Upon the request of any person who was tested pursuant to this chapter or upon the request of the person's attorney, the results of such analysis shall be made available to the person or to the person's attorney.
Source: SL 1992, ch 306, § 12; SL 2012, ch 208, § 8.
42-8-45.11. Costs of testing and witness expenses as costs in the action.
In the case of a conviction under this chapter, the costs accrued for the withdrawal and chemical analysis of blood or other bodily substance and witness fees and expenses in connection therewith, shall be taxed by the court as costs in the action and shall, if the county is to have a lien for fees paid to counsel for an indigent, be included in the lien filed; otherwise it shall, with other costs as the court imposes, be entered in the judgment as provided in chapter 23A-27.
Source: SL 1992, ch 306, § 13.
42-8-46. Reckless operation of boat as misdemeanor.
No person may operate any boat in a reckless or negligent manner so as to endanger the life, limb, or property of any person. A violation of this section is a Class 1 misdemeanor.
Source: SL 1959, ch 125, § 9; SDC Supp 1960, § 25.1409 (1); SL 1977, ch 190, § 629; SL 1983, ch 303, § 2; SL 1994, ch 335, § 19.
42-8-48. Waterskiing and surfboarding prohibited during hours of darkness--Violation as misdemeanor.
No person may operate a boat on any waters of this state towing any person on water skis, a surfboard, or other devices, nor may any person engage in waterskiing, surfboarding, or similar activity at any time between the hours from one-half hour after sunset to one-half hour before sunrise. A violation of this section is a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 12; SDC Supp 1960, § 25.1412 (2); SL 1983, ch 303, § 4; SL 1991, ch 186, § 47; SL 1991, ch 360; SL 1994, ch 335, § 20.
42-8-49. Two persons required in boat towing skis or aquaplane--Exception for wide angle mirror--Violation as misdemeanor.
No motorboat which has in tow or is otherwise assisting a person on water skis, aquaplane or similar contrivance, may be operated or propelled in or upon any waterway, unless such motorboat is occupied by at least two competent persons. However, this section does not apply to any motorboat equipped with a wide angle rear view mirror of not less than one hundred sixty degrees. A violation of this section is a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 12; SDC Supp 1960, § 25.1412 (1); SL 1963, ch 143, § 3; SL 1991, ch 186, § 48.
42-8-50. Skiing requirements waived for exhibitions and regattas.
The provisions of §§ 42-8-48 and 42-8-49 do not apply to a performer engaged in a professional exhibition or a person or persons engaged in an activity authorized under § 42-8-54.
Source: SL 1959, ch 125, § 12; SDC Supp 1960, § 25.1412 (3).
42-8-51. Operation to cause collision by skier or surfboarder prohibited--Violation as misdemeanor.
No person may operate or manipulate any boat, tow rope, or other device by which the direction or location of water skis, a surfboard, or similar device may be affected or controlled in such a way as to cause the water skis, surfboard, or similar device, or any person thereon to collide with or strike against any object or person. A violation of this section is a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 12; SDC Supp 1960, § 25.1412 (4); SL 1991, ch 186, § 49; SL 1994, ch 335, § 21.
42-8-52. Tampering with or unlawful operation of boat as misdemeanor.
Any person who tampers with the boat of another, with intent to injure the same, or cause inconvenience to the owner, or who takes and operates the boat or motorboat of another without the consent of the owner or person lawfully in charge thereof, under such circumstances as not to constitute theft, is guilty of a Class 1 misdemeanor.
Source: SL 1965, ch 117; SL 1977, ch 190, § 631; SL 1978, ch 158, § 71; SL 1983, ch 303, § 5; SL 1994, ch 335, § 22.
42-8-54. Application for permission for regatta, race or exhibition--Conducting unauthorized event as misdemeanor.
If a regatta, motorboat or other boat race, marine parade, tournament, or exhibition is proposed to be held, the person in charge of the event shall, at least fifteen days prior to the date of the event, file an application with the Department of Game, Fish and Parks for permission to hold the event. The application shall include the date, time, and location for the event. No such event may be conducted without authorization of the Game, Fish and Parks Commission in writing. Any person who conducts an event without the authorization of the Game, Fish and Parks Commission is guilty of a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 13; SDC Supp 1960, § 25.1413 (1); SL 2015, ch 210, § 4.
42-8-56. Operator of boat involved in accident to render assistance to other persons--Violation as misdemeanor.
The operator of a boat involved in a collision, accident, or other casualty, so far as the operator can do so without serious danger to the operator's own boat, crew, and passengers, shall render to other persons affected by the collision, accident, or other casualty such assistance as may be practicable and as may be necessary in order to save them from or minimize any danger caused by the collision, accident, or other casualty. A violation of this section is a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 10; SDC Supp 1960, § 25.1410 (1); SL 1991, ch 186, § 50; SL 1994, ch 335, § 23.
42-8-57. Operator of boat involved in accident to reveal identification--Violation as misdemeanor.
The operator of a boat involved in a collision, accident, or other casualty, shall give the operator's name, address and identification of the operator's boat in writing to any person injured and to the owner of any property damaged in the collision, accident, or other casualty. A violation of this section is a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 10; SDC Supp 1960, § 25.1410 (1); SL 1991, ch 186, § 51; SL 1994, ch 335, § 24.
42-8-58. Notice of accident to be filed with department--Investigation of accidents--Violation as misdemeanor.
The operator of a boat on public waters shall, in the case of a collision or an accident resulting in damage to a boat or other property to an apparent extent of one thousand dollars or more to any one person's property or two thousand dollars or more in any one accident or resulting in death or injury to a person, immediately, by the quickest means of communication, give notice of the collision or accident to the nearest conservation officer or other law enforcement officer. The officer shall file with the Department of Game, Fish and Parks a full description of the collision or accident upon forms provided by the department and available from any state or county law enforcement agency. Notice of the collision or accident is not required of any person who is physically incapable of giving immediate notice during the period of such incapacity. If the operator of the boat is physically incapable of giving an immediate notice of a collision or accident and there was another occupant in the boat at the time of the collision or accident capable of doing so, such occupant shall make or cause to be given the notice not given by the operator. The secretary of game, fish and parks may investigate the circumstances of the accident. Any operator or occupant who fails to file a notice as required by this section is guilty of a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 10; SDC Supp 1960, § 25.1410 (2); SL 1975, ch 267; SL 1983, ch 303, § 6; SL 1991, ch 186, § 52; SL 1991, ch 361; SL 1994, ch 335, § 25; SL 1997, ch 246, § 1; SL 2000, ch 213, § 1; SL 2003, ch 168, § 2.
42-8-60. Records maintained by owners of boats for hire--Preservation and inspection of records--Violation as misdemeanor.
The owner of a boat or boats for hire shall keep a record of the name and address of the person or persons hiring any boat; the identification number thereof; number of persons assigned to said boat; the departure date and time, and the expected time of return. The record shall be preserved for at least six months. Such records are subject to inspection at any time by any law enforcement officer. A violation of this section is a Class 2 misdemeanor.
Source: SL 1959, ch 125, § 7; SDC Supp 1960, § 25.1407 (1); SL 1991, ch 186, § 53; SL 1994, ch 335, § 26.
42-8-63. Application by political subdivision for special rules applicable therein.
Any subdivision of this state may after public notice make formal application to the Game, Fish and Parks Commission for rules with reference to the operation of boats on any waters within its territorial limits and shall set forth the reasons which make such rules necessary or appropriate.
Source: SL 1959, ch 125, § 14; SDC Supp 1960, § 25.1414 (2); SL 1994, ch 335, § 28.
42-8-66. Enforcement of chapter by law enforcement officers--Stopping and boarding of boats.
Any law enforcement officer of this state and its subdivisions may enforce the provisions of this chapter and in the exercise thereof shall have the authority to stop and board any boat subject to this chapter.
Source: SL 1959, ch 125, § 16; SDC Supp 1960, § 25.1416; SL 1994, ch 335, § 29.
42-8-67. Boundary waters--Concurrent jurisdiction with adjoining states.
For the purposes of this chapter, the courts and the conservation officers of this state have jurisdiction over the entire boundary waters of this state to the furthermost shorelines. The concurrent jurisdiction of the courts and administrative officers of the adjoining states of Minnesota, North Dakota, Montana, Wyoming, Iowa and Nebraska over all boundary waters between those states and this state, is hereby recognized.
Source: SL 1981, ch 306, § 2.
42-8-68. Sailboards exempt.
The provisions of this chapter may not apply to sailboards.
Source: SL 1984, ch 279, § 21.
42-8-69. Age requirement for driving certain motorboats--Violation as misdemeanor.
No owner of a motorboat which is propelled by a motor of more than six horsepower may allow any person under twelve years of age to operate such a motorboat unless such person is accompanied by a person of at least eighteen years of age. This section does not apply to personal watercraft as defined in § 42-8-2. A violation of this section is a Class 2 misdemeanor.
Source: SL 1990, ch 345; SL 1997, ch 246, § 2.
42-8-102. Personal watercraft--Rules of operation--Age requirement--Violation as misdemeanor.
No person may operate a personal watercraft:
(1) Unless each person aboard is wearing a wearable personal flotation device approved by the United States Coast Guard;
(2) That is equipped by the manufacturer with a lanyard type engine cutoff without attaching such lanyard to the person, clothing, or personal flotation device as appropriate for the specific watercraft;
(3) Between sunset and sunrise unless the personal watercraft is equipped with navigation lights as required by the Department of Game, Fish and Parks by rules promulgated pursuant to chapter 1-26;
(4) At greater than a slow-no-wake speed within one hundred fifty feet of any dock, swimmer, swimming raft, or nonmotorized boat. Slow-no-wake is the slowest possible speed necessary to maintain steerage, but in no case greater than five miles per hour;
(5) In other than a reasonable and prudent manner; and
(6) To chase or harass wildlife, or travel through emergent floating vegetation at greater than slow-no-wake speed.
Except in the case of an emergency, no person under the age of fourteen may operate or be permitted to operate a personal watercraft, regardless of horsepower, unless there is a person eighteen years of age or older on board the craft. No owner of a personal watercraft may permit the personal watercraft to be operated by such underage person. The provisions of this section do not apply to a performer engaged in a professional exhibition or a person preparing to participate or participating in an officially-sanctioned regatta, race, marine parade, tournament, or exhibition. A violation of this section is a Class 2 misdemeanor.
Source: SL 1993, ch 323, § 2; SL 1996, ch 259; SL 1997, ch 246, § 3; SL 2015, ch 221, § 1.
42-8-103. Summons issued for violation punishable as Class 2 misdemeanor--Release upon promise to appear in court or bond--Violation as misdemeanor.
If any resident of the state is arrested for a violation of any provision of this chapter or chapter 32-3A, punishable as a Class 2 misdemeanor, the arresting officer shall obtain the name and address of the person and information relative to the violation and issue the person a summons in writing to appear in court. The officer shall release the resident from custody upon receiving from the person a written promise to appear at the time and place designated by the officer.
If any nonresident is arrested for a violation of any provision of this chapter or chapter 32-3A, punishable as a Class 2 misdemeanor, the arresting officer shall obtain the name and address of the person and information relative to the violation. The arresting officer may issue the person a summons in writing to appear in court or may require the nonresident to furnish a bond in the amount set forth on the fine and bond schedule provided by the presiding circuit court judge, or in an amount set by a magistrate or judge for that offense, before being released from custody. If the officer issues the nonresident a summons in writing to appear in court the officer shall release the nonresident from custody upon receiving from the person a written promise to appear at the time and place designated by the officer.
Any person who intentionally violates the written promise to appear, given in accordance with the provisions of this section, is guilty of a Class 2 misdemeanor.
Source: SL 2006, ch 223, § 1.
42-10-1
Amusement ride defined.
42-10-2
Liability insurance requirement.
42-10-2.1
Proof of liability insurance required.
42-10-3
Local government inspection.
42-10-4
Annual inspection.
42-10-5
Inspection affidavit.
42-10-6
Daily inspection--Standards--Record.
42-10-7
Inspection following modification.
42-10-8
Certified amusement ride inspector defined.
42-10-9
Rider obedience of rules, warnings, and oral or prerecorded instructions--Contributory negligence.
42-10-1. Amusement ride defined.
An amusement ride is any mechanical device which carries or conveys passengers along, around, or over a fixed or restricted route or course for the purpose of giving its passengers amusement, pleasure, thrills, or excitement. The term, amusement ride, does not include slides, playground equipment, coin-operated devices, or conveyances which operate directly on the ground or on the surface or pavement directly on the ground or the operation of amusement devices of a permanent nature which are not moved from one location to another more than one time per year or which are insured to operate in only one fixed location.
Source: SL 1985, ch 334, § 1; SL 1991, ch 352, § 1; SL 2014, ch 208, § 1.
42-10-2. Liability insurance requirement.
No person may own, operate, or lease an amusement ride or an amusement device of a permanent nature in this state unless the person purchases insurance in an amount not less than one million dollars per occurrence and one million dollars in the aggregate against liability for injury or death to persons arising out of the use of the amusement ride. Any owner, operator, or lessee of an amusement ride who fails to purchase liability insurance is guilty of a Class 1 misdemeanor. A certificate of insurance shall be furnished by the owner, operator, or lessee to the sponsoring persons, organization, or governing board of the local unit of government before the amusement ride or amusement device of a permanent nature is operated.
Source: SL 1985, ch 334, § 2; SL 2014, ch 208, § 2.
42-10-2.1. Proof of liability insurance required.
No amusement ride may be operated without proof of liability insurance commensurate to the risk of liability inherent to such amusement ride.
Source: SL 1991, ch 352, § 2.
42-10-3. Local government inspection.
Nothing in this chapter prohibits any municipality or county from conducting independent inspections of amusement rides pursuant to their police powers.
Source: SL 1991, ch 352, § 17.
42-10-4. Annual inspection.
No person may operate an amusement ride in the state unless the amusement ride has passed an inspection during the prior twelve months by a certified amusement ride inspector.
Source: SL 2014, ch 208, § 3.
42-10-5. Inspection affidavit.
The owner of an amusement ride shall file an inspection affidavit attesting that the amusement ride has passed the most recent annual inspection required in § 42-10-4 with the sponsoring organization and the governing board of the local unit of government before the amusement ride is operated at each location. The inspection affidavit shall identify the amusement ride by name, manufacturer, and serial number and identify the date the inspection was performed, the inspector's name, and the inspector's certification number.
Source: SL 2014, ch 208, § 4; SL 2017, ch 187, § 1.
42-10-6. Daily inspection--Standards--Record.
No person may operate an amusement ride unless a daily inspection is performed on each day of operation and the amusement ride meets the current American Society of Testing and Material Standards on Amusement Rides and Devices, F 770-13. An owner or operator of the amusement ride, or a certified amusement ride inspector shall perform the inspection and maintain the record of the inspection for no less than three years. The owner or operator of the amusement ride shall make the record of daily inspection available on request.
Source: SL 2014, ch 208, § 5.
42-10-7. Inspection following modification.
No person may operate an amusement ride that has been modified or altered in a manner that changes the dynamics or control system from the manufacturer's design or specification since the most recent annual inspection, unless the amusement ride passes an inspection by a certified amusement ride inspector prior to operation.
Source: SL 2014, ch 208, § 6.
42-10-8. Certified amusement ride inspector defined.
For purposes of §§ 42-10-4 to 42-10-9, inclusive, a certified amusement ride inspector is either an employee of the insurance company that insures the amusement ride or an amusement ride inspector that carries a minimum of one hundred thousand dollars in errors and omissions insurance and is certified by the National Association of Amusement Ride Safety Officials or the Amusement Industry Manufacturers and Suppliers Trade Association.
Source: SL 2014, ch 208, § 7.
42-10-9. Rider obedience of rules, warnings, and oral or prerecorded instructions--Contributory negligence.
A rider on an amusement ride or an amusement device of a permanent nature is responsible for obeying all posted rules, warnings, and the oral or prerecorded instructions of the operator of the amusement ride or amusement device of a permanent nature, and all of the following:
(1) No rider may board or dismount from an amusement ride or an amusement device of a permanent nature except at a designated area;
(2) No rider may throw or expel any object or matter from an amusement ride or an amusement device of a permanent nature;
(3) No rider may act in any manner contrary to posted rules, oral rules, or prerecorded oral or video rules or instructions while boarding, riding on, or dismounting from any amusement ride or an amusement device of a permanent nature;
(4) No rider may engage in any reckless act or activity which may tend to injure the rider or others;
(5) While using an amusement ride or an amusement device of a permanent nature that requires steering or control of the rider or a car device, each rider shall maintain reasonable control of his or her speed and course at all times. A rider may not steer the ride in such a manner as to harm another person. A rider on an amusement ride or an amusement device of a permanent nature where the rider controls the speed or direction of the device or part of the device assumes responsibility to engage the device in a manner that does not harm the rider or others;
(6) No rider may disconnect, disable, or attempt to disconnect or disable any safety device, seat belt, harness, or other restraining device before, during, or after movement of the ride has started except at the express instruction of the operator;
(7) No rider may disembark or attempt to disembark from any amusement ride or amusement device of a permanent nature before, during, or after movement of a ride has started except upon the express instruction of the operator;
(8) No rider may board or attempt to board any amusement ride or an amusement device of a permanent nature if the rider is under the influence of alcohol or any controlled substance which impacts his or her ability to safely use the ride and abide by the posted and oral instructions. The operator may prevent a rider who is apparently under the influence of drugs or alcohol from riding on an amusement ride or an amusement device of a permanent nature. An operator who prevents a rider from boarding a ride in accordance with this subdivision may not be held criminally or civilly liable if the operator has a reasonable basis for believing that the rider is under the influence of drugs or alcohol;
(9) No rider may alter or enhance the intended speed, course, or direction of an amusement ride or an amusement device of a permanent nature by using an unauthorized device, instrument, or other method;
(10) No rider may attempt to gain access to controls of an amusement ride or an amusement device of a permanent nature designed solely to be operated by employees of amusement rides.
If a rider violates any provision of this section, the violation may be used as evidence of contributory negligence in any civil case asserting amusement ride or operator liability.
Source: SL 2014, ch 208, § 8.
42-11-1
Definition of terms.
42-11-2
Persons exempt from liability.
42-11-3
Conduct not exempt from liability.
42-11-4
Warranty or trespass unaffected.
42-11-5
Warning signs--Placement--Size.
42-11-1. Definition of terms.
Terms used in this chapter mean:
(1) "Engaging in an equine activity," riding, training, racing, assisting in medical treatment of, driving, or being a passenger upon an equine, whether mounted or unmounted or any person assisting a participant or show management. The term does not include being a spectator at an equine activity, unless the spectator places himself in an unauthorized area and in immediate proximity to the equine activity;
(2) "Equine," any horse, pony, mule, donkey, or hinny;
(3) "Equine activity,"
(a) Equine shows, fairs, competitions, performances, or parades that involve any breed of equines and any of the equine disciplines, including dressage, hunter and jumper horse shows, grand prix jumping, three-day event, combined training, rodeos, driving, pulling, cutting, polo, steeplechasing, English and western performance riding, endurance trail riding and western games, and hunting;
(b) Equine training or teaching activities;
(c) Boarding equines;
(d) Riding, inspecting, or evaluating an equine belonging to another, whether or not the owner has received some monetary consideration or other thing of value for the use of the equine or is permitting a prospective purchaser of the equine to ride, inspect, or evaluate the equine;
(e) Rides, trips, hunts, or other equine activities of any type however informal or impromptu that are sponsored by an equine activity sponsor; and
(f) Placing or replacing horseshoes on an equine;
(4) "Equine activity sponsor," any individual, group, club, partnership, or corporation, whether or not the sponsor is operating for profit or nonprofit, which sponsors, organizes, or provides the facilities for an equine activity, including pony clubs, 4-H clubs, hunt clubs, riding clubs, school and college-sponsored classes, programs and activities, therapeutic riding programs, and operators, instructors, and promoters of equine facilities, including stables, clubhouses, ponyride strings, fairs, and arenas at which the activity is held;
(5) "Equine professional," any person engaged for compensation in instructing a participant or renting to a participant an equine for the purpose of riding, driving, racing or being a passenger upon the equine or engaged in renting equipment or tack to a participant;
(6) "Inherent risks of equine activities," those dangers or conditions which are an integral part of equine activities, including:
(a) The propensity of the animal to behave in ways that may result in injury, harm, or death to persons on or around them;
(b) The unpredictability of the animal's reaction to such things as sounds, sudden movement, and unfamiliar objects, persons, or other animals;
(c) Certain hazards such as surface and subsurface conditions;
(d) Collisions with other animals or objects;
(e) The potential of a participant to act in a negligent manner that may contribute to injury to the participant or others, such as failing to maintain control over the animal or not acting within the participant's ability;
(7) "Participant," any person, whether amateur or professional, who engages in an equine activity, whether or not a fee is paid to participate in such activity.
Source: SL 1993, ch 324, § 1.
42-11-2. Persons exempt from liability.
No equine activity sponsor, equine professional, doctor of veterinary medicine, or any other person, is liable for an injury to or the death of a participant resulting from the inherent risks of equine activities.
Source: SL 1993, ch 324, § 2.
42-11-3. Conduct not exempt from liability.
Nothing in this chapter prevents or limits the liability of an equine activity sponsor, an equine professional, or any other person if the equine activity sponsor, equine professional, or other person:
(1) Provides the equipment or tack, and knew or should have known that the equipment or tack was faulty, and such equipment or tack was faulty to the extent that it causes the injury; or provides the animal and fails to make reasonable and prudent efforts to determine the ability of the participant to engage safely in the equine activity and determine the ability of the participant to safely manage the particular animal based on the participant's representations of his ability;
(2) Owns, leases, rents, or otherwise is in lawful possession and control of the land or facilities upon which the participant sustains any injury because of a dangerous latent condition which was known to the equine activity sponsor, equine professional, or person and for which warning signs had not been conspicuously posted;
(3) Commits an act or omission that constitutes willful or wanton disregard for the safety of the participant and that causes the injury;
(4) Intentionally injures the participant.
Source: SL 1993, ch 324, § 3.
42-11-4. Warranty or trespass unaffected.
Nothing in this chapter prevents or limits the liability of an equine activity sponsor or equine professional for any injury involving an equine if the recovery is made pursuant to warranty or trespass.
Source: SL 1993, ch 324, § 4.
42-11-5. Warning signs--Placement--Size.
Each equine professional shall post and maintain the following sign:
WARNING
Under South Dakota law, an equine professional is not liable for an injury to or the death of a participant in equine activities resulting from the inherent risks of equine activities, pursuant to § 42-11-2.
Such signs shall be placed in a clearly visible location on or near stables, corrals, race tracks, or arenas where the equine professional conducts equine activities. The warning notice shall appear on the sign in black letters, with each letter being a minimum of one inch in height. Each written contract entered into by an equine professional for the providing of professional services, instruction, or the rental of equipment or tack or an equine to a participant, whether or not the contract involves equine activities on or off the location or site of the equine professional's business, shall contain in clearly readable print the warning notice provided in this chapter.
Source: SL 1993, ch 324, § 5.
42-12-1 to 42-12-7. Repealed.
42-12-7.1
Definitions.
42-12-8
South Dakota Athletic Commission created.
42-12-8.1
Terms--Vacancies.
42-12-8.2
Meetings--Quorum.
42-12-8.3
Officers.
42-12-8.4
Per diem--Expenses.
42-12-8.5
Immunity from personal liability.
42-12-8.6
Liability coverage.
42-12-9
Direction of boxing, kickboxing, and mixed martial arts competitions and sparring
exhibitions.
42-12-9.1
Powers and duties of commission.
42-12-10
Promulgation of rules.
42-12-11
Boxing commission fund.
42-12-12
Competitions and exhibitions to conform to local ordinances.
42-12-13
Certain educational institutions and amateur associations exempt.
42-12-14
Certificate of registration required for boxers, kickboxers, and mixed martial artists--Application--Violation as misdemeanor.
42-12-15
License required to facilitate a competition or exhibition--Application--Violation as
misdemeanor.
42-12-16
Certificate of registration required for competition or exhibition--Violation as
misdemeanor.
42-12-17
Records pertaining to competition or exhibition.
42-12-18
Inspection of competition or sparring exhibition.
42-12-19
Proceeds subject to forfeiture.
42-12-20
Sanctions for violation of chapter.
42-12-21
Summary suspension of registration or license--Hearing--Appeal.
42-12-22
Proceedings for revocation or suspension.
42-12-23
Appeals from discipline.
42-12-24
Penalties for violation of chapter.
42-12-25
Cease and desist order--Service--Hearing.
42-12-26
Failure to appear--Criminal prosecution.
42-12-27
Report--Orders.
42-12-28
Fees to reimburse commission for proceedings.
42-12-29
Prosecution of criminal action.
42-12-30
Prosecution of civil action.
42-12-1 to 42-12-7. Repealed by SL 2009, ch 219, § 8, eff. July 1, 2012.
42-12-7.1. Definitions.
Terms used in this chapter mean:
(1) "Department," the Department of Labor and Regulation;
(2) "Commission," the South Dakota Athletic Commission;
(3) "Boxing," the sport or practice of fighting with fists in which participants wear boxing gloves;
(4) "Kickboxing," the sport of attack and defense in which participants wear boxing gloves and throw punches as in boxing and kick with bare feet as in karate;
(5) "Mixed martial arts," the sport of fighting in which participants inflict or employ kicks, punches, blows, holds, and other techniques to injure, stun, choke, incapacitate, or disable an opponent, using a combination of boxing, kickboxing, wrestling, grappling, or other martial arts;
(6) "Boxer," a participant in a boxing competition or sparring exhibition;
(7) "Kickboxer," a participant in a kickboxing competition or sparring exhibition;
(8) "Mixed martial artist," a participant in a mixed martial arts competition or sparring exhibition;
(9) "Promoter," any person, club, corporation, association, or entity, who produces, arranges, or stages any competition or sparring exhibition;
(10) "Manager," any person who acts on behalf of a boxer, kickboxer, or mixed martial artist to facilitate the production, arrangement, or staging of any competition or sparring exhibition;
(11) "Matchmaker," any person, club, corporation, association, or entity that brings together a competition or sparring exhibition;
(12) "Competition," any match, fight, contest, or event in which the participants intend to and actually inflict punches, blows, kicks, or other techniques to temporarily incapacitate an opponent with the intent to win the competition, and in which the participants receive payment or remuneration, directly or indirectly, as consideration for the participant's performance; and
(13) "Sparring exhibition," any match, fight, contest, or event in which the participants intend to and actually inflict punches, blows, kicks, or other techniques to temporarily incapacitate an opponent with the intent to display skills without striving to win, and in which the participants receive payment or remuneration, directly or indirectly, as consideration for the participant's performance.
Source: SL 2014, ch 209, § 28.
42-12-8. South Dakota Athletic Commission created.
There is hereby created, within the jurisdiction of the Department of Labor and Regulation, the South Dakota Athletic Commission consisting of five members appointed by the Governor. Not all members may be of the same political party. One member shall have experience with, or have been active in boxing, kickboxing, or mixed martial arts. One member shall represent the public at large.
Source: SL 2013, ch 221, § 1; SL 2014, ch 209, § 1.
42-12-8.1. Terms--Vacancies.
Each appointment to the commission shall be for a period of three years except for the initial appointments which shall be for staggered terms. Each member shall serve until the expiration of the term for which the commissioner was appointed or until the member's successor is appointed and qualified to serve on the commission. If a vacancy occurs other than by expiration of term, the Governor shall appoint a qualified person to fill the vacancy for the unexpired term. The appointment to an unexpired term is not considered a full term. No member may serve more than three consecutive full terms.
Source: SL 2014, ch 209, § 2.
42-12-8.2. Meetings--Quorum.
The commission shall hold at least one meeting annually. The commission may hold other meetings at a time and place set by the chair or by a majority of the commission. A majority of the commissioners constitutes a quorum to conduct business. A majority of those present and voting constitutes a decision of the commission.
Source: SL 2014, ch 209, § 3.
42-12-8.3. Officers.
The commission shall select a chair, vice chair, and secretary annually. No member may serve as chair for more than three consecutive years.
Source: SL 2014, ch 209, § 4.
42-12-8.4. Per diem--Expenses.
Members of the commission shall receive a per diem established pursuant to § 4-7-10.4 and expenses at the same rate as other state employees while engaged in official duties.
Source: SL 2014, ch 209, § 5.
42-12-8.5. Immunity from personal liability.
The commission, its members, and its agents are immune from personal liability for actions taken in good faith in the discharge of the commission's duties, and the state shall hold the commission, its members, and its agents harmless from all costs, damages, and attorney fees arising from claims and suits against them with respect to matters to which such immunity applies. The attorney general shall represent and appear for them in any action or proceeding brought by or against the commission, its members, and its agents because of such acts.
Source: SL 2014, ch 209, § 6.
42-12-8.6. Liability coverage.
The commission may acquire liability coverage from an outside entity to provide adequate coverage against claims.
Source: SL 2014, ch 209, § 7.
42-12-9. Direction of boxing, kickboxing, and mixed martial arts competitions and sparring exhibitions.
The commission is hereby vested with the sole direction, control, and jurisdiction over all contests and exhibitions of boxing, kickboxing, and mixed martial arts competitions and sparring exhibitions held in the State of South Dakota. No competition or exhibition may be conducted within this state except in accordance with the provisions of this chapter.
Source: SL 2013, ch 221, § 2.
42-12-9.1. Powers and duties of commission.
The commission has the following powers and duties:
(1) Through rules established pursuant to chapter 1-26, establish standards for the practice of boxing, kickboxing, and mixed martial arts;
(2) Issue licenses and registrations to persons, clubs, corporations, associations, or other entities that meet the qualifications for licensure or registration;
(3) Have available the names of persons, clubs, corporations, associations, or other entities registered or licensed pursuant to the provisions of this chapter;
(4) Have available the date, time, and location of any competition or sparring exhibition registered pursuant to the provisions of this chapter;
(5) Employ personnel in accordance with the needs and budget of the commission;
(6) Enter into contracts as necessary to carry out the commission's responsibilities pursuant to the provisions of this chapter;
(7) Communicate disciplinary actions and registration and license status of boxers, kickboxers, mixed martial artists, managers, promoters, and matchmakers to relevant state and federal governing bodies as may be required; and
(8) Perform other duties directly related to the provisions of this chapter or rules promulgated pursuant to chapter 1-26.
Source: SL 2014, ch 209, § 26.
42-12-10. Promulgation of rules.
The commission shall promulgate rules, pursuant to chapter 1-26, to:
(1) Govern the conduct of boxing, kickboxing, and mixed martial arts competitions, and sparring exhibitions;
(2) Establish registration criteria and registration fees for all boxers, kickboxers, and mixed martial artists who participate in competitions and sparring exhibitions governed by the commission;
(3) Establish license criteria and license fees for all promoters, managers, and matchmakers of boxing, kickboxing, or mixed martial arts competitions;
(4) Establish registration requirements for all boxing, kickboxing, or mixed martial arts competitions or sparring exhibitions held in the state;
(5) Establish the written records to be maintained for all competitions and sparring exhibitions conducted in the state;
(6) Establish a fee based on the percentage of gross revenues from any boxing, kickboxing, or mixed martial arts competition or sparring exhibition held in the state. The fee established under this subdivision may not exceed five percent of the gross revenues of the exhibition from any and all sources including cable television and pay-per-view telecasts of the event, exclusive of any federal tax. However, the commission may establish and impose a minimum exhibition fee not to exceed five thousand dollars to cover the expenses of the South Dakota Athletic Commission;
(7) Establish criteria for approved bona fide educational institutions or national amateur boxing, kickboxing, or mixed martial arts associations for purposes of being exempted from the provisions of this chapter;
(8) Establish procedures for disciplinary proceedings; and
(9) Establish procedures for receiving and conducting complaint investigations.
Source: SL 2013, ch 221, § 3; SL 2014, ch 209, § 25; SL 2016, ch 213, § 1.
42-12-11. Boxing commission fund.
All fees collected pursuant to this chapter shall be placed in the boxing commission fund that is hereby established in the state treasury. All money deposited in the fund is continuously appropriated to pay for the administration of this chapter and for the compensation and expenses of members of the South Dakota Athletic Commission.
Source: SL 2013, ch 221, § 4.
42-12-12. Competitions and exhibitions to conform to local ordinances.
Boxing, kickboxing, or mixed martial arts competitions or sparring exhibitions held in any city in this state shall be held in conformity to the ordinances of that city, in addition to the requirements of this chapter. No boxing, kickboxing, or mixed martial arts competition or sparring exhibition may be held in a city where such contests or exhibitions are prohibited by ordinance.
Source: SL 2013, ch 221, § 5.
42-12-13. Certain educational institutions and amateur associations exempt.
All boxing, kickboxing, or mixed martial arts or sparring exhibitions conducted by bona fide educational institutions or by national amateur boxing, kickboxing, or mixed martial arts associations or their local affiliates approved by the commission are exempt from the provisions of this chapter.
Source: SL 2013, ch 221, § 6; SL 2014, ch 209, § 27.
42-12-14. Certificate of registration required for boxers, kickboxers, and mixed martial artists--Application--Violation as misdemeanor.
No boxer, kickboxer, or mixed martial artist may participate in any competition or sparring exhibition without having a certificate of registration issued by the commission. Each boxer, kickboxer, or mixed martial artist shall submit an application upon a form prescribed by the commission and pay the required application fee. Any boxer, kickboxer, or mixed martial artist in a competition or sparring exhibition who does not have a certificate of registration issued by the commission is guilty of a Class 2 misdemeanor. The commission may file a civil suit to enjoin any person engaging in a competition or sparring exhibition without a certificate of registration issued by the commission.
Source: SL 2014, ch 209, § 8.
42-12-15. License required to facilitate a competition or exhibition--Application--Violation as misdemeanor.
No manager, matchmaker, or promoter may participate in, facilitate, produce, stage, arrange, or profit from a competition or sparring exhibition without having a license issued by the commission. A manager, matchmaker, or promoter shall submit an application upon a form prescribed by the commission and shall pay the required application fee. Any person, club, corporation, association, or entity required to have a license pursuant to this section that participates in, facilitates, produces, stages, arranges, or profits from a competition or sparring exhibition without having a license issued by the commission is guilty of a Class 2 misdemeanor. The commission may file a civil suit to enjoin any person or entity engaging in a competition or sparring exhibition without a license issued by the commission.
Source: SL 2014, ch 209, § 9.
42-12-16. Certificate of registration required for competition or exhibition--Violation as misdemeanor.
No competition or sparring exhibition may be held without having a certificate of registration issued by the commission. The commission shall prescribe the form and the fee for registration. Any person, competitor, club, corporation, association, or entity that participates in, facilitates, produces, stages, arranges, or profits from a competition or sparring exhibition that does not have a certificate of registration issued by the commission is guilty of a Class 1 misdemeanor. The commission may file a civil suit to enjoin any person or entity from participating in, facilitating, producing, staging, arranging, or profiting from a competition or sparring exhibition that does not have a certificate of registration issued by the commission.
Source: SL 2014, ch 209, § 10.
42-12-17. Records pertaining to competition or exhibition.
Any competition or sparring exhibition held in South Dakota shall keep any written records pertaining to the competition or sparring exhibition that may be required by the commission. The records shall be made available for inspection by a representative or agent of the commission during normal business hours.
Source: SL 2014, ch 209, § 11.
42-12-18. Inspection of competition or sparring exhibition.
Any member of the commission, or its representative or agent, may freely enter upon and inspect a competition or sparring exhibition at the time and place set for the competition or sparring exhibition.
Source: SL 2014, ch 209, § 12.
42-12-19. Proceeds subject to forfeiture.
Any assets, interest, revenues, income, and proceeds acquired from a competition or sparring exhibition held without having a certificate of registration issued by the commission are subject to forfeiture to the commission.
Source: SL 2014, ch 209, § 13.
42-12-20. Sanctions for violation of chapter.
If the commission determines that a person, club, corporation, association, or entity is in violation of this chapter or any rule promulgated pursuant to this chapter, the commission may take the following actions:
(1) Deny an application for registration or licensure;
(2) Suspend, temporarily suspend, revoke, or refuse to renew a registration or license;
(3) Place on probation, condition, or limit a registration or license;
(4) Require reimbursement of the commission for expenses resulting from suspension, temporary suspension, revocation, refusal to renew, fines, censure, or reprimand resulting from a violation;
(5) Pursue legal actions against a person, club, corporation, association, or entity that is not authorized to act by this chapter;
(6) Impose an administrative fine as provided for by this chapter;
(7) Seek an injunction as provided for by this chapter;
(8) Issue a cease and desist order as provided for by this chapter; or
(9) Other sanctions which the commission finds appropriate.
Source: SL 2014, ch 209, § 14.
42-12-21. Summary suspension of registration or license--Hearing--Appeal.
The commission may summarily suspend a registration or license in advance of a final adjudication or during the appeals process if the commission finds that a registrant or licensee represents a clear and immediate danger to the public safety or to the safety of other competitors or participants in any competition or sparring exhibition. Any registrant or licensee whose registration or license is suspended under this section is entitled to a prompt hearing pursuant to § 1-26-29. The registrant or licensee may subsequently appeal the suspension to circuit court in accordance with chapter 1-26.
Source: SL 2014, ch 209, § 15.
42-12-22. Proceedings for revocation or suspension.
Proceedings for the revocation or suspension of any registration or license shall be conducted pursuant to chapter 1-26 and any rules promulgated pursuant to this chapter.
Source: SL 2014, ch 209, § 16.
42-12-23. Appeals from discipline.
The findings and actions of the commission on disciplinary matters are subject to appeal as provided by chapter 1-26 and any rules promulgated pursuant to this chapter.
Source: SL 2014, ch 209, § 17.
42-12-24. Penalties for violation of chapter.
Any person, club, corporation, association, or entity that has violated any provision of this chapter or any rule promulgated pursuant to this chapter is subject to the following penalties:
(1) Administrative fine:
(a) Boxer, kickboxer, or martial artist: any person registered by the commission who violates any provision of this chapter or rules promulgated pursuant to this chapter is liable for an administrative fine not to exceed five hundred dollars for each offense;
(b) Manager, promoter, or matchmaker: any person, club, corporation, association, or entity licensed by the commission which violates any provision of this chapter or rules promulgated pursuant to this chapter is liable for an administrative fine not to exceed two thousand dollars for each offense;
(c) Competition or sparring exhibition: any person, club, corporation, association, or entity responsible for facilitating, producing, staging, arranging, or profiting from a competition or sparring exhibition registered by the commission that violates any provision of this chapter or rules promulgated pursuant to this chapter is liable for an administrative fine not to exceed two thousand five hundred dollars for each offense.
An administrative fine not paid within sixty days from the date of the order imposing the fine may be enforced by an action in the appropriate county circuit court. Any person, club, corporation, association, or entity aggrieved by an order under this subdivision may make an appeal pursuant to chapter 1-26;
(2) Injunction: if the commission deems it necessary for the public safety or the safety of competitors or participants in a competition or sparring exhibition, the commission may bring an action in the name of the state in the circuit court in any county in which jurisdiction is proper to enjoin the act, practice, or violation and to enforce compliance with this chapter or any rule promulgated pursuant to this chapter. Upon showing that a person, club, corporation, association, or entity has engaged in an otherwise unauthorized act or practice, a permanent or temporary injunction, or restraining order, or other appropriate relief shall be obtained against the person, club, corporation, association, or entity to prohibit the continuation of the unauthorized act or practice;
(3) Cease and desist order: the commission may issue and have served upon a person, club, corporation, association, or entity an order requiring the person, club, corporation, association, or entity to cease and desist from any unauthorized practice or act which is in violation of this chapter or any rule promulgated pursuant to this chapter. The cease and desist order shall give reasonable notice of the rights to request a hearing pursuant to chapter 1-26 and shall state the reasons for the entry of the order.
Source: SL 2014, ch 209, § 18.
42-12-25. Cease and desist order--Service--Hearing.
Service of the cease and desist order is effective if the order is served on the person, club, corporation, association, entity, or counsel of record personally or by certified mail. Unless otherwise agreed by the commission and the party requesting the hearing, a hearing shall be held no later than ninety days after a request for a hearing is received by the commission.
Source: SL 2014, ch 209, § 19.
42-12-26. Failure to appear--Criminal prosecution.
If no hearing is requested within the thirty days of service of the cease and desist order, the order becomes final and remains in effect until the order is modified or vacated by the commission. If the party to whom a cease and desist order is issued requests a hearing, but after being duly notified fails to appear at the hearing, the party is in default and the proceeding may be determined against the party upon consideration of the cease and desist order, the allegations of which may be considered to be true. Action taken pursuant to this section does not relieve a party from criminal prosecution by a competent authority or from disciplinary action by the commission with respect to the party's application, registration, license, or renewal.
Source: SL 2014, ch 209, § 20.
42-12-27. Report--Orders.
The commission or hearing examiner shall issue a report within thirty days of the close of the contested case hearing record. Within thirty days after the report and any exceptions to the report, the commission shall issue a further order vacating, modifying, or making permanent the cease and desist orders as the facts require.
Source: SL 2014, ch 209, § 21.
42-12-28. Fees to reimburse commission for proceedings.
The commission may impose a fee to reimburse the commission for all or part of the cost of proceedings resulting in disciplinary action authorized by this chapter or rules promulgated pursuant to this chapter, the imposition of civil penalties or administrative fines, or the issuance of a cease and desist order. The fee may be imposed if the commission shows a person, club, corporation, association, or entity has committed an act or practice in violation of this chapter or rules promulgated pursuant to this chapter, or has violated an order of the commission. The costs include the amount paid by the commission for services from attorneys, investigators, court reporters, witnesses, expert witnesses, reproduction of records, commission members' per diem compensation, commission staff time, and expenses incurred by commission members and staff.
Source: SL 2014, ch 209, § 22.
42-12-29. Prosecution of criminal action.
Any criminal action for violation of any provision of this chapter or of any rule promulgated pursuant to this chapter shall be prosecuted by the attorney general of the state, or, at the attorney general's request and under the attorney general's direction, by the state's attorney of any county in which the violation occurred.
Source: SL 2014, ch 209, § 23.
42-12-30. Prosecution of civil action.
In any civil action to enforce the provisions of this chapter, the Department of Labor and Regulation and the state may be represented by any qualified attorney who is a regular salaried employee of the department and is designated by the department for this purpose or, at the department's request, by the attorney general.
Source: SL 2014, ch 209, § 24.