South Dakota Administrative Code

Rule 48:01:04:17 End of game. 48:01:04:17. End of game. The executive director at any time may publicly announce an ending date for an instant game by posting notice at each of the lottery validation centers and publishing notice in the South Dakota Register. No further tickets i…

Rule 48:01:05:01 Sale of instant game tickets on Indian reservations authorized. 48:01:05:01. Sale of instant game tickets on Indian reservations authorized. Lottery tickets for instant games may be sold within the exterior boundaries of Indian reservations in the state. The sale…

Rule 48:01:05:02 Payment to tribal governments. 48:01:05:02. Payment to tribal governments. The lottery shall pay each tribal government 50 percent of the state's net proceeds as defined in SDCL 42-7A-24 from the sale of instant lottery tickets within the exterior boundaries of i…

Rule 48:01:05:03 Accounting records made available. 48:01:05:03. Accounting records made available. The lottery shall make available to each tribal government an accounting of instant lottery ticket sales within the exterior boundaries of its reservation. The lottery shall remit …

Rule 48:01:05:04 Transfer of funds. 48:01:05:04. Transfer of funds. The lottery shall transfer funds from the sale of instant lottery tickets held in escrow beginning July 1, 1989, to the person or entity designated in the agreement negotiated between each tribal government and t…

Rule 48:01:05:05 Retailer's license application and renewal on Indian reservations -- Fee. 48:01:05:05. Retailer's license application and renewal on Indian reservations -- Fee. Any person selling instant tickets within the exterior boundaries of an Indian reservation in the stat…

Rule 48:01:05:06 Communication fees and credits. 48:01:05:06. Communication fees and credits. A retailer selling instant tickets within the exterior boundaries of Indian reservations in the state shall be assessed a weekly charge of $12.93 for communication fees. Any retailer sel…

48:02:01:01. Definitions. In addition to the terms defined by SDCL 42-7A-1, terms used in this article are defined as follows: (1) "Applicant," a person applying for any video lottery license; (2) "Background investigation," a security and credit check of an applicant for a video…

Rule 48:02:02:01 Additional qualifications for licensure. 48:02:02:01. Additional qualifications for licensure. In addition to the qualifications required in SDCL 42-7A-43, the commission may not grant a video lottery license until the commission is satisfied that the applicant i…

48:02:02:02. Individual qualifications must be established. The commission may not grant a video lottery license to an applicant until the commission is satisfied that the individual qualifications of the following persons meet the requirements in SDCL 42-7A-43 and § 48:02:02:01:…

Rule 48:02:02:03 Applicant required to furnish information. 48:02:02:03. Applicant required to furnish information. Applicants must furnish all information, including financial data and documents, certifications, consents, waivers, individual history forms, and other materials re…

Rule 48:02:02:04 Consent to examination of accounts and records. 48:02:02:04. Consent to examination of accounts and records. Each applicant must consent in writing to the examination of all accounts, bank accounts, and records in the applicant's possession or under the applicant…

Rule 48:02:02:05 Waiver of liability. 48:02:02:05. Waiver of liability. Each applicant must accept any risk of adverse public notice, embarrassment, criticism, damages, or financial loss which may result from any disclosure or publication by a third party of any material or infor…

Rule 48:02:02:06 Oath or affirmation and attorney certification. 48:02:02:06. Oath or affirmation and attorney certification. All application, registration, and disclosure forms and other documents submitted to the lottery or the commission by or on behalf of the applicant for pu…

Rule 48:02:02:07 Duty to provide accurate and material information. 48:02:02:07. Duty to provide accurate and material information. Any applicant who fails to reveal any fact material to qualification or submits information that is untrue or misleading as to a material fact of qu…

Rule 48:02:03:01 Form of application. 48:02:03:01. Form of application. All applicants required to be qualified and licensed as manufacturers, distributors, operators, establishments, and persons under subdivision 48:02:02:02(5) must provide all information required in chapter 48…

Rule 48:02:03:02 Submission of application. 48:02:03:02. Submission of application. All applications shall be submitted to the South Dakota Lottery at its office in Pierre. Source: 16 SDR 27, effective August 18, 1989. General Authority: SDCL 42-7A-21(16). Law Implemented: SDCL 4…

Rule 48:02:03:03 Application fees. 48:02:03:03. Application fees. An application fee of $50 shall accompany each application. An application fee of $25 shall accompany each application of those persons who qualify under subdivision 48:02:02:02(5) only and who are not included und…

Rule 48:02:03:04 Consideration of applications by commission. 48:02:03:04. Consideration of applications by commission. The lottery shall only consider complete applications for licensure. Applications are complete when the applicant has submitted the following: (1) All informati…

Rule 48:02:03:05 Issuance of license. 48:02:03:05. Issuance of license. The lottery shall issue the applicable license after the background investigations are concluded; the lottery determines the applicant is qualified under SDCL 42-7A and this article; and the applicable licens…

48:02:03:06. Provisional licensure. The lottery may issue a provisional license subject to the applicant meeting the conditions required by the lottery. The lottery may issue a provisional license to applicants whose applications are complete under § 48:02:03:04 for purposes of a…

Rule 48:02:03:07 Notice of incomplete application. 48:02:03:07. Notice of incomplete application. The lottery shall notify applicants if their application is incomplete and shall state the areas in which it is deficient. Source: 16 SDR 27, effective August 18, 1989. General Autho…

Rule 48:02:03:08 Notice of unapproved investigation or testing. 48:02:03:08. Notice of unapproved investigation or testing. The lottery shall notify applicants in writing of denial for licensure or machine approval and cite the reasons for its determination. Source: 16 SDR 27, ef…

Rule 48:02:03:09 Procedure for review of license denial. 48:02:03:09. Procedure for review of license denial. Applicants may request a hearing before the commission to review a license denial. A request for hearing must be made in writing and received by the lottery within ten da…

Rule 48:02:03:10 Hearing on review of denial by commission. 48:02:03:10. Hearing on review of denial by commission. A hearing to review a license denial shall be heard by the commission at its next regularly scheduled meeting and shall be conducted in accordance with the conteste…

Rule 48:02:03:11 License fees -- Renewal fees and dates. 48:02:03:11. License fees -- Renewal fees and dates. A licensee shall pay the following license fees annually, as applicable: (1) Manufacturer, $5,000; (2) Distributor, $5,000; (3) Operator, the greater of $1,000 or $100 fo…

Rule 48:02:03:12 Renewal of license. 48:02:03:12. Renewal of license. The lottery shall renew all video lottery licenses annually provided each licensee submits the applicable renewal fee, completes the renewal forms provided by the lottery, and continues to meet the qualificatio…

Rule 48:02:03:13 Notice of change affecting license. 48:02:03:13. Notice of change affecting license. Licensees must immediately notify the lottery of any proposed change of ownership or any transaction that requires approval of qualifications under chapter 48:02:02. Source: 16 S…

Rule 48:02:04:01 Criteria for suspension, revocation, and denial of license renewal. 48:02:04:01. Criteria for suspension, revocation, and denial of license renewal. The commission may suspend, revoke, or deny renewal of a license for any violation of or noncompliance with the pr…

Rule 48:02:04:02 Imposition of civil fines. 48:02:04:02. Imposition of civil fines. The commission may impose civil fines authorized in SDCL 42-7A-4(12) in lieu of or in addition to other actions taken against a licensee. Source: 16 SDR 27, effective August 18, 1989. General Auth…

Rule 48:02:04:03 Hearing on suspension, revocation, denial of license renewal, or imposition of civil fines. 48:02:04:03. Hearing on suspension, revocation, denial of license renewal, or imposition of civil fine. A notice and hearing regarding suspension, revocation, denial of li…

48:02:04:04. Scheduling of hearings. The commission shall hold hearings on suspension, revocation, denial of license renewal, or violations of SDCL chapter 42-7A and this title, with the notice of hearing sent at least ten days prior to the hearing date. Source: 16 SDR 27, effect…

Rule 48:02:05:01 General duties of all video lottery licensees. 48:02:05:01. General duties of all video lottery licensees. The general duties required of each video lottery licensee are as follows: (1) Promptly report any violation or any facts or circumstances that may result i…

Rule 48:02:05:02 Duties of licensed manufacturers. 48:02:05:02. Duties of licensed manufacturers. Specific duties of licensed manufacturers are as follows: (1) Manufacture machines and associated equipment for placement in the state in accordance with the specifications and proce…

48:02:05:03. Duties of licensed distributors. Specific duties of licensed distributors are as follows: (1) Sell only machines and associated equipment approved under chapters 48:02:07 and 48:02:08 for placement in the state to licensed operators; (2) Coordinate all machine and as…

48:02:05:03.01. Permitted activities of licensed distributors. Licensed distributors may broker the selling of video lottery machines from one licensed operator to another licensed operator. Source: 49 SDR 51, effective November 27, 2022. General Authority: SDCL 42-7A-21(17), 42-…

48:02:05:04. Duties of licensed operators. Specific duties of licensed operators are as follows: (1) Promote the placement of machines in licensed establishments and assume primary responsibility for operation and maintenance of video lottery machines; (2) Maintain and provide in…

Rule 48:02:05:04.01 Duties of service agents. 48:02:05:04.01. Duties of service agents. Specific duties of service agents are as follows: (1) Receive and retain qualification as a Type II technician; (2) Maintain and provide an inventory of associated equipment in conjunction wit…

48:02:05:05. Duties of licensed establishments. Specific duties of owners, managers, and designated employees of licensed establishments are as follows: (1) Provide a secure premise for the placement, operation, and play of video lottery machines; (2) Permit no one to tamper with…

Rule 48:02:05:06 Posting of video lottery odds. 48:02:05:06. Posting of video lottery odds. The management of a licensed establishment shall post the overall odds of winning each video lottery game authorized by §48:02:07:01. The odds must be posted in the area where the video lo…

Rule 48:02:06:01 Lottery to provide communications protocol. 48:02:06:01. Lottery to provide communications protocol. The lottery shall provide licensed manufacturers or manufacturers applying for licensure the protocol documentation necessary to enable their machines to communic…

Rule 48:02:06:02 Remittance of state's percentage of net machine income. 48:02:06:02. Remittance of state's percentage of net machine income. Machine owners shall remit to the lottery on the date specified on each billing statement the state's percentage of net machine income on …

Rule 48:02:06:03 Remittance through electronic transfer of funds. 48:02:06:03. Remittance through electronic transfer of funds. The state's percentage of net machine income shall be remitted to the lottery through the electronic transfer of funds. Operators shall furnish to the l…

Rule 48:02:06:04 Penalty for late payment or insufficient funds payment. 48:02:06:04. Penalty for late payment or insufficient funds payment. Operators shall maintain a balance in their account in an amount to cover the state's percentage of net machine income drawn by the lotter…

48:02:06:05. Record keeping requirements. Operators shall retain audit information that includes an electronic or paper duplicate of all ticket vouchers and transactions required to be recorded by § 48:02:08:05(1), (2), (3), (4), (5), (6), and (9). The audit information shall be …

Rule 48:02:06:06 Duty to notify of accounting discrepancies. 48:02:06:06. Duty to notify of accounting discrepancies. An operator shall keep accurate records of net machine income generated from each machine. The lottery shall prepare and provide to the operator a statement refle…

48:02:06:07. Settlement of accounts. The South Dakota Lottery may not make credit adjustments until an accounting discrepancy is settled. To address a discrepancy, the operator shall submit to the South Dakota Lottery the maintenance log that includes current mechanical meter rea…

Rule 48:02:06:08 Manual reporting and payment may be required. 48:02:06:08. Manual reporting and payment may be required. Operators shall mail and remit payment of the state's percentage of net machine if any of the following events occur: (1) The electronic transfer of funds is …

Rule 48:02:06:09 Requests of reports. 48:02:06:09. Requests of reports. Any operator may request additional reports available on play transactions of the operator's machines and other marketing information not considered confidential by the lottery. The lottery may charge a fee f…

Rule 48:02:07:01 Video games authorized. 48:02:07:01. Video games authorized. Video lottery machines licensed under SDCL 42-7A may offer the following video games: (1) Draw poker; (2) Keno; (3) Blackjack; and (4) Line-up symbols and numbers. A video lottery machine may simulate t…