Title 42 — RECREATION AND SPORTS

Source: SL 2023, ch 132 , § 2.

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 di…

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, secu…

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 retai…

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 lotter…

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 t…

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 impos…

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-…

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 mo…

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 b…

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 plac…

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, a…

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 produc…

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 t…

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 …

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 game…

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 sec…

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 awa…

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 ye…

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 §

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.

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 con…

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.

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 offi…

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…

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…

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 t…

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.

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 …

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 …

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 employe…

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 …

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 …

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…

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 hav…

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 maintaine…

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…

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 sec…

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…

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 machi…

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 commissi…

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.

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 .

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 esta…

A person licensed, or applying for licensure, as a video lottery machine manufacturer, distributor, operator, or lottery retailer shall submit to a background investigation. Every partner, member, manager, director, and officer of the person, and any stockholder of five percent o…

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…

The commission shall deny or revoke an establishment license for video lottery machine placement that does not meet the requirements of §

No video lottery machines may be placed in a facility with an on-sale license issued pursuant to §

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…

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.