South Dakota Administrative Code

Rule 20:18:17:27 Slot machine keys. 20:18:17:27. Slot machine keys. Keys to a slot machine or a connected device which may affect the operation of the slot machine must be maintained in a secure place. The responsibility for maintaining the keys lies with the operator. Source: 16…

Rule 20:18:17:28 Jackpot payouts and hand pays. 20:18:17:28. Jackpot payouts and hand pays. If a slot machine is unable to drop sufficient coins for payment of jackpots and hand pays, the payment must be made by the operator or manufacturer who owns the machine. The jackpot payou…

20:18:17:28.01. Required tax record. When a retail licensee pays a jackpot exceeding $2,000 as set forth in the One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, the retail licensee must complete the form W-2G furnished by the United States Internal Revenue Service (IRS).…

Rule 20:18:17:28.02 Publication of payoffs. 20:18:17:28.02. Publication of payoffs. Payoff schedules applicable to every licensed game or slot machine must be displayed at all times either on the table or machine or in a conspicuous place immediately adjacent to it. Payoff schedu…

Rule 20:18:17:28.03 Awards in addition to or in lieu of jackpot. 20:18:17:28.03. Awards in addition to or in lieu of jackpot. Awards offered in addition to or in lieu of the jackpot of a slot machine must be equal to or exceed the value of the jackpot as reflected in the payout t…

Rule 20:18:17:28.04 Discontinuance of prizes. 20:18:17:28.04. Discontinuance of prizes. A licensee may not discontinue a prize awarded in excess of the amount on the glass of the slot machine unless the licensee gives notice to the public or unless the prize is awarded. The notic…

Rule 20:18:17:29 Slot machine drop procedures. 20:18:17:29. Slot machine drop procedures. The slot machine drop must be performed by a minimum of two persons. As a slot machine is opened, the drop buckets must be tagged with the respective slot machine number. The slot machine dr…

Rule 20:18:17:30 Count team. 20:18:17:30. Count team. The count must be performed by a count team of at least two persons. Source: 16 SDR 57, effective October 1, 1989. General Authority: SDCL 42-7B-7. Law Implemented: SDCL 42-7B-1, 42-7B-2, 42-7B-3, 42-7B-4, 42-7B-7, 42-7B-14, 4…

Rule 20:18:17:31 Repealed. 20:18:17:31. Meter count procedures.Repealed. Source: 16 SDR 57, effective October 1, 1989; repealed, 16 SDR 233, effective July 1, 1990.

Rule 20:18:17:32 Count room procedures. 20:18:17:32. Count room procedures. Coins must be wrapped as soon as possible after being counted. A count team member must independently count the wrapped coins and reconcile them with the electronic count or weight and with the meter coun…

Rule 20:18:17:33 Theoretical hold -- Actual hold. 20:18:17:33. Theoretical hold -- Actual hold. Slot machine electronic meter readings must be recorded each time the coins are removed from the drop and electromechanical meters must be recorded at least monthly. The records must b…

Rule 20:18:17:34 Machine repair requirements. 20:18:17:34. Machine repair requirements. The slot machine hopper loads and coins in the drop buckets must be secured and accounted for during the removal and maintenance of slot machines. Source: 16 SDR 57, effective October 1, 1989.…

Rule 20:18:17:35 Slot machine fill procedures. 20:18:17:35. Slot machine fill procedures. A fill slip must be prepared whenever funds are distributed to a slot machine. The fill slip must be a three-part carbonless form if the operator does not utilize a slot management system an…

Rule 20:18:17:36 Executive secretary approval of slot machine and device stamp transfers. 20:18:17:36. Executive secretary approval of slot machine and device stamp transfers. The executive secretary may approve the sale or transfer of slot machines and device stamps between lice…

Rule 20:18:17:37 Multiple player slot machines. 20:18:17:37. Multiple player slot machines. A retail licensee which licenses less than 30 gaming devices may install one slot machine designed and manufactured for play by more than one customer at a time provided such retail licens…

Rule 20:18:17:38 Use of slot machine payout receipts and slot machine wagering vouchers. 20:18:17:38. Use of slot machine payout receipts and slot machine wagering vouchers. Slot machines designed to dispense slot machine payout receipts or slot machine wagering vouchers must be …

20:18:17:39. Cashless wagering systems -- Defined. A cashless wagering system allows players to participate in cashless wagering using an approved, securely protected authentication method, that accesses a wagering account at the cashless wagering system of the operator or anothe…

20:18:17:39.01. Certification testing. Prior to conducting cashless wagering, all equipment and systems, integral to the conduct of cashless wagering must be submitted by the system's vendor to a commission designated independent testing laboratory. The laboratory shall test the …

20:18:17:40. Devices in a cashless environment -- Definition of cashless device. The requirements of §§ 20:18:17:40.01 through 20:18:17:40.07 apply to cashless devices. The term cashless device means any slot machines, kiosks, and any other equipment using a cashless environment.…

20:18:17:40.01. Configuring cashless transactions. A cashless device may not allow the configuration of cashless transactions unless performed via a secure means. Source: 36 SDR 22, effective August 18, 2009; 48 SDR 14, effective August 22, 2021. General Authority: SDCL 42-7B-7, …

20:18:17:40.02. Audit trails for cashless transactions. A cashless device must have the ability to recall the last 35 cashless transactions that increased any of the meters listed in § 20:18:17:40.03. Cashless transactions may be recorded in a larger log that also contains record…

20:18:17:40.03. Cashless meter requirements. Each cashless device must incorporate electronic accounting meters that conform to the following electronic metering requirements: (1) The operation of mandatory electronic accounting meters for cashless devices identified in this chap…

20:18:17:40.04. Transaction confirmation. Cashless wagering systems must cause a relevant, informative message to be displayed to the player whenever any cashless transaction is being processed. The cashless device, player identification component display, or the player's device …

20:18:17:40.05. Player authentication. Each cashless transaction between a supporting cashless device and the cashless wagering system must be secured using a method of authentication that allows for the identification of the player and the source of funds when an approved third-…

20:18:17:40.06. Smart card/device technology. The cashless wagering system may allow a player to access the player's wagering account using smart card and smart device technology, where the account information is maintained in the cashless wagering system's database. If the smart…

20:18:17:40.07. Identifying a cashless device. Each cashless device must be identifiable by a player pursuant to internal control procedures. With the commission's approval, the licensee may remove display menu items that pertain to cashless operation for devices not participatin…

20:18:17:41. System in a cashless environment. The requirements of §§ 20:18:17:41 through 20:18:17:41.17, must be implemented in the cashless wagering system to allow for changing of any of the associated parameters or accessing any wagering account. Additionally, the communicati…

20:18:17:41.01. Cashless wagering system protection. The cashless wagering system components must be housed in a secure environment that: (1) Has sufficient protection against alteration, tampering, or unauthorized access; and (2) Is equipped with a surveillance system that must …

20:18:17:41.02. Logical access controls. The cashless wagering system must be logically secured against unauthorized access by authentication credentials allowed by the commission pursuant to internal control procedures. Source: 36 SDR 22, effective August 18, 2009; 48 SDR 14, ef…

20:18:17:41.03. Security levels. The cashless wagering system must have the ability to structure permission levels and logins so that user roles may be separated. Source: 36 SDR 22, effective August 18, 2009; 48 SDR 14, effective August 22, 2021. General Authority: SDCL 42-7B-7. …

20:18:17:41.04. Prevention of unauthorized access or transactions. The following minimal internal controls must be implemented to ensure that each game is prevented from responding to any command for crediting outside of a properly authorized cashless transaction: (1) Secure the …

20:18:17:41.05. Diagnostic tests on a cashless wagering system. Any testing or test account must be logged by the cashless wagering system. No person may perform any cashless activity without being logged by the system. Source: 36 SDR 22, effective August 18, 2009; 48 SDR 14, eff…

20:18:17:41.06. Cashless device identification. The cashless wagering system must uniquely identify each cashless device connected to the system. Source: 36 SDR 22, effective August 18, 2009; 48 SDR 14, effective August 22, 2021. General Authority: SDCL 42-7B-7, 42-7B-11(13). Law…

20:18:17:41.07. Loss of communication. If communication between the cashless wagering system and the cashless device is lost, a message must be displayed to the player that cashless transactions cannot currently be processed. A cashless device that holds information relating to c…

20:18:17:41.08. Encryption. Communication relating to cashless operation must employ encryption technology that must be reviewed and approved by the commission. This section does not apply to any communication between the cashless device and the interface element. Source: 36 SDR …

20:18:17:41.09. Cashless wagering system logs. The cashless wagering system must be able to produce logs for all pending and completed cashless transactions by: (1) Cashless device number; (2) Wagering account identification number; (3) Time and date of the transaction; (4) Type …

20:18:17:41.10. Cashless wagering system reports. The cashless wagering system must be able to provide the information needed to produce the following financial and player reports: (1) Wagering account summary and detail report. This report must be immediately available to a play…

20:18:17:41.11. Transferring of credits to/from the wagering account. Where credits are transferred between the wagering account and the cashless device: (1) After the player's identity is confirmed, the cashless device must present transfer options to the player. A system may mo…

20:18:17:41.12. Direct wagering from the wagering account. Where credits are not tranferred between the wagering account and the cashless device: (1) A wager may not be accepted that would cause the player to have a negative balance; and (2) The account balance is to be debited w…

20:18:17:41.13. Comingling of player funds. If noncashable credits and cashable player funds are comingled on one credit meter, noncashable credits shall be wagered first, as allowed by the rules of the game, before any cashable player funds are wagered. Source: 36 SDR 22, effect…

20:18:17:41.14. Movement of money. Repealed. Source: 36 SDR 22, effective August 18, 2009; 48 SDR 14, effective August 22, 2021.

20:18:17:41.15. Personal identification number. Repealed. Source: 36 SDR 22, effective August 18, 2009; 48 SDR 14, effective August 22, 2021.

20:18:17:41.16. Player account balance. Repealed. Source: 36 SDR 22, effective August 18, 2009; 48 SDR 14, effective August 22, 2021.

Rule 20:18:17:41.17 Independent integrity checks. 20:18:17:41.17. Independent integrity checks. Each component within the system, that affects the integrity of the system must provide for an independent integrity check of the component's software that is critical to its operation…

Rule 20:18:17:42 Server-supported gaming system requirements. 20:18:17:42. Server-supported gaming system requirements. Server-supported gaming systems are the combination of a server and client terminal which together allow the transfer of the control programs, game content, and…

Rule 20:18:18:01 Definitions. 20:18:18:01. Definitions. As used in this chapter, the following terms mean: (1) "Conversion," a change from one preapproved configuration to another preapproved configuration; (2) "Game outcome," the final result of the wager; (3) "Modification," a …

Rule 20:18:18:02 Approval of slot machines -- Applications and procedures. 20:18:18:02. Approval of slot machines -- Applications and procedures. A slot machine manufacturer or distributor may not distribute a slot machine or its parts which affect game outcome, as defined in § 2…