The South Dakota Codified Law (SDCL) Chapter 42-7A governs charitable gaming. Specifically, SDCL 42-7A-18 addresses the licensing of manufacturers and distributors of gaming devices. This section outlines the requirements for obtaining and maintaining such licenses, including the background checks, financial stability, and operational standards that applicants must meet. The law distinguishes between manufacturers, who produce the devices, and distributors, who sell or lease them to licensed organizations. The key is that both roles require separate, distinct licenses issued by the South Dakota Commission onGaming, unless a specific exemption or combined license is provided for by statute or regulation, which is not the general rule for distinct business functions. A company solely engaged in the manufacture of gaming devices, and not involved in their distribution or sale within South Dakota, would not need a distributor’s license. Conversely, a company that only distributes devices manufactured by others would not require a manufacturer’s license. The question hinges on the specific business activity undertaken within the state’s regulatory framework.

South Dakota law, specifically SDCL 42-7A, governs the licensing and regulation of video lottery terminals (VLTs). A key aspect of this regulation involves the distribution of net winnings from these machines. Net winnings are defined as the total amount wagered minus the total amount paid out as prizes. For video lottery terminals operating under South Dakota law, the net winnings are subject to a state excise tax. The law mandates that a specific percentage of these net winnings is allocated to the South Dakota general fund. This allocation is a crucial component of the state’s revenue stream derived from gaming activities. The distribution framework ensures that a significant portion of the profits generated by video lottery remains with the state for public services. The statutory framework does not permit direct allocation of net winnings to tribal governments or to the video lottery operators themselves beyond their contracted share of the gross winnings. Instead, the law clearly directs the net winnings, after prize payouts and operator commissions, to the state treasury, which then enters the general fund for broader budgetary purposes.

South Dakota law, specifically under SDCL Chapter 42-7A, governs the operation of video lottery terminals. A critical aspect of this regulation is the licensing and oversight of manufacturers and distributors. Manufacturers are responsible for producing the video lottery machines, ensuring they comply with all technical standards and regulatory requirements set forth by the South Dakota Lottery Commission. Distributors, on the other hand, are licensed to supply these machines to authorized retailers and to provide maintenance and support. The law mandates that both manufacturers and distributors undergo a thorough background investigation and obtain a license from the Commission before engaging in any business related to video lottery in the state. This licensing process is designed to ensure the integrity of the video lottery system by vetting individuals and entities involved in the supply chain, preventing criminal elements from participating, and maintaining public trust in the gaming operations. The Commission has the authority to set specific requirements for these licenses, including financial stability, good character, and compliance with all applicable laws and regulations. The intent is to create a secure and regulated environment for video lottery, protecting both the state’s revenue and the players.

South Dakota law, specifically SDCL Chapter 42-7A, governs the operation of video lottery terminals. A key aspect of this regulation is the definition of a “qualified manufacturer” and the requirements for obtaining a license to manufacture or distribute these machines. The law mandates that such manufacturers must demonstrate financial stability, possess a good reputation, and undergo thorough background checks. Furthermore, the South Dakota Department of Revenue, which oversees gaming, has specific rules regarding the licensing process, including application fees, bond requirements, and ongoing compliance obligations. The question revolves around identifying the entity responsible for approving or denying a license for a video lottery machine manufacturer. The statute clearly designates the Secretary of the Department of Revenue as the ultimate authority for issuing, renewing, or revoking these licenses, based on recommendations from the Division of Gaming within the Department. This process ensures that only compliant and reputable entities are permitted to operate within the state’s regulated gaming market, thereby protecting the integrity of the gaming system and public interest. The Secretary’s decision is based on the applicant’s adherence to all statutory and regulatory requirements.

The South Dakota Codified Law (SDCL) Chapter 42-7A governs charitable gaming. Specifically, SDCL 42-7A-18 outlines the requirements for the allocation of net proceeds from charitable gaming. This statute mandates that at least 50% of the net proceeds from any charitable gaming activity must be used for charitable purposes. The remaining net proceeds may be used for administrative expenses, which are defined as costs directly related to the conduct of the gaming activity itself, not general operating expenses of the organization. The law also specifies that no more than 10% of the net proceeds can be used for advertising and promotional expenses related to the gaming activity. Therefore, if a gaming organization reports $100,000 in net proceeds, a minimum of $50,000 must be dedicated to charitable purposes. The maximum allowable expenditure for advertising and promotion is $10,000 ($100,000 * 10%). The remaining $40,000 could be allocated to administrative expenses or additional charitable contributions. The question focuses on the maximum permissible allocation for advertising and promotion, which is a direct application of the 10% limit specified in SDCL 42-7A-18.

South Dakota law, specifically SDCL Chapter 42-7A, governs the licensing and regulation of video lottery terminals. The law establishes a framework for the operation of these terminals, including requirements for manufacturers, distributors, and retailers. A key aspect of this regulation is the definition of what constitutes a “video lottery terminal” and the types of games that are permissible. The law aims to ensure the integrity of the gaming process, prevent illegal activities, and generate revenue for the state. It mandates that video lottery terminals must be operated in licensed establishments and that only approved games can be offered. The definition of a video lottery terminal is critical for determining which devices fall under state regulation and are subject to its provisions, including licensing, taxation, and operational standards. The law distinguishes these terminals from other forms of gaming by their connection to a central computer system that validates outcomes and manages the lottery process.

South Dakota Codified Law (SDCL) Chapter 42-7B governs charitable gaming. Specifically, SDCL 42-7B-13 outlines the permissible locations for conducting bingo games. This section stipulates that bingo may only be conducted in a community center, church, school, or a facility owned or operated by a qualified organization. A “qualified organization” is defined under SDCL 42-7B-3 and generally includes entities like veterans’ organizations, religious organizations, and other non-profit groups meeting specific criteria. The law is designed to ensure that charitable gaming benefits legitimate charitable causes and is conducted in environments conducive to community participation and oversight. The restriction on location is a key regulatory control to prevent the misuse of charitable gaming for commercial gain or in inappropriate settings. Therefore, any location not explicitly listed or falling outside the definition of a facility operated by a qualified organization would be impermissible for conducting bingo under South Dakota law.

South Dakota Codified Law § 42-7B-4 outlines the requirements for licensure as a manufacturer or distributor of electronic gaming devices. Specifically, it mandates that an applicant must have a demonstrated history of financial stability and integrity, and possess the technical expertise and capacity to manufacture or distribute gaming devices in compliance with state regulations. The law also requires that the applicant, and any person with a substantial interest in the applicant, undergo a thorough background investigation by the South Dakota Commission onGaming. This investigation assesses the applicant’s character, reputation, and past conduct to ensure they are suitable to engage in the gaming industry. Furthermore, the applicant must demonstrate compliance with all applicable federal, state, and local laws and regulations pertaining to the manufacture and distribution of gaming devices. The licensing process involves submitting a comprehensive application detailing ownership, financial information, operational plans, and security protocols. The Commission then reviews this application, conducts necessary investigations, and may hold hearings before making a decision on licensure. The core principle is to ensure that only reputable and capable entities are permitted to operate within the state’s regulated gaming market, safeguarding public interest and the integrity of gaming operations.

South Dakota law, specifically SDCL Chapter 42-7A, governs charitable gaming operations. This chapter outlines the permissible types of games, licensing requirements, and the allocation of proceeds. For instance, raffles, bingo, and pull tabs are generally permitted. A crucial aspect is the requirement that a significant portion of the gross revenue generated from charitable gaming must be directed towards charitable purposes, with a specific percentage often mandated by statute or administrative rule. The law also details the responsibilities of licensed organizations, including record-keeping, reporting, and adherence to operational guidelines to prevent fraud and ensure funds are used appropriately for the stated charitable mission. The South Dakota Commission on Gaming is the regulatory body responsible for overseeing these activities, issuing licenses, and enforcing compliance with the provisions of SDCL Chapter 42-7A and associated administrative rules. Understanding the specific definitions of “charitable purpose” and the limitations on administrative expenses is vital for compliance.

South Dakota law, specifically SDCL Chapter 42-7A, governs charitable gaming. This chapter outlines the requirements for organizations to conduct gaming activities for charitable purposes. Key provisions include the definition of eligible organizations, the types of games permitted, licensing procedures, and the allocation of net proceeds. Eligible organizations are typically those that have been in existence for a specified period and are recognized as charitable, educational, religious, or veterans’ organizations. The law mandates that a significant portion of the net proceeds from gaming must be used for the charitable purpose for which the gaming was conducted. A common misconception is that all proceeds must be directly disbursed to the charitable cause, but the law allows for reasonable administrative expenses associated with conducting the gaming activity. However, the statute places strict limits on what constitutes a reasonable expense. For instance, advertising and promotional costs, equipment rental, and staff wages directly related to the gaming event are permissible. Conversely, expenses not directly tied to the gaming operation or those that appear to divert funds from the charitable purpose are prohibited. The law also establishes reporting requirements, ensuring transparency and accountability in the management of gaming proceeds. The critical aspect is the nexus between the gaming activity and the stated charitable purpose, ensuring that the gaming serves as a fundraising mechanism rather than a primary operational expense for the organization itself. The South Dakota Commission on Gaming is responsible for the oversight and enforcement of these regulations.

South Dakota law, specifically under SDCL Chapter 42-7A, governs the operation of video lottery terminals. This chapter outlines the licensing requirements for manufacturers, distributors, and operators of video lottery machines. A key aspect of this regulation involves the distribution of net winnings. Net winnings are defined as the total amount wagered minus the total amount paid out as prizes. For video lottery, the state mandates a specific allocation of these net winnings. A portion is allocated to the state’s general fund, another portion funds the South Dakota Lottery, and a significant portion is designated for local government entities, including cities and counties, where the machines are operated. The distribution formula ensures that revenue generated from video lottery benefits various levels of government and supports the infrastructure and administration of the lottery itself. The specific percentages are subject to legislative changes but are designed to reflect a balance between state revenue generation and local economic impact. For instance, a common framework involves a percentage for the state general fund, a percentage for lottery operations, and a percentage for the host municipality or county. This structure is fundamental to understanding the financial framework of video lottery in South Dakota.

The South Dakota Codified Law (SDCL) Chapter 42-7A governs charitable gaming. Specifically, SDCL 42-7A-35.1 addresses the requirements for a qualified organization to conduct raffles. A qualified organization must have been in existence and actively operating in South Dakota for at least three years immediately preceding the application for a license to conduct charitable gaming. This duration ensures that the organization has a demonstrable history of community involvement and stability, preventing transient groups from engaging in charitable gaming. The law aims to protect the public and ensure that gaming proceeds genuinely benefit established charitable causes within the state. The three-year requirement is a critical eligibility criterion for conducting raffles and other forms of charitable gaming in South Dakota.

South Dakota law, specifically under SDCL Chapter 42-7A, governs the operation of video lottery terminals (VLTs). The statute establishes a framework for licensing, regulation, and taxation of video lottery. A key aspect of this framework is the allocation of net winnings from VLT operations. Net winnings are defined as the gross winnings minus payouts to players. The law stipulates a distribution of these net winnings, with a significant portion designated for the state’s General Fund. Specifically, 70% of the net winnings from video lottery operations is remitted to the state’s General Fund. The remaining 30% is allocated to the video lottery operator, which includes the retailer and the video lottery system provider. This distribution mechanism is designed to generate revenue for the state while providing an incentive for private entities to participate in the video lottery enterprise. The specific percentages are mandated by statute and are not subject to arbitrary alteration by operators.

South Dakota law, specifically ARSD 40:10:02:07, governs the licensing and operation of electronic pull-tab devices. This regulation outlines the requirements for manufacturers, distributors, and operators of these devices. A key aspect is the approval process for the games themselves. Manufacturers must submit game software and related documentation to the South Dakota Commission onGaming for review and approval before they can be offered to the public. This approval process ensures that the games comply with all statutory and regulatory requirements, including fairness, integrity, and responsible gaming standards. The commission’s authority extends to revoking approvals if a game is found to be non-compliant or to have issues affecting player protection or the integrity of the gaming system. Therefore, the initial and ongoing approval of electronic pull-tab game software by the Commission on Gaming is a critical regulatory step.

South Dakota Codified Law (SDCL) Chapter 42-7A governs the regulation of charitable gaming. Specifically, SDCL 42-7A-11 outlines the requirements for the operation of gaming by qualified organizations. This statute mandates that all net proceeds from gaming activities must be used for the organization’s lawful charitable purposes. The law also specifies that gaming can only be conducted by a qualified organization, which is defined to include entities meeting certain criteria related to their charitable or civic purposes and their duration of existence. Furthermore, SDCL 42-7A-13.1 establishes that the net proceeds from a raffle, after deducting prizes and expenses, must be used for the organization’s charitable purposes. The law does not permit the net proceeds to be distributed to individuals, including members of the organization, except for the payment of legitimate expenses directly related to the conduct of the gaming activity. The concept of “net proceeds” is crucial, meaning the total revenue minus the cost of prizes and authorized expenses. Any diversion of these funds for non-charitable purposes or for personal benefit would constitute a violation of South Dakota gaming law.

The South Dakota Codified Law (SDCL) Chapter 42-7B governs charitable gaming. Specifically, SDCL 42-7B-30 outlines the requirements for obtaining a license to conduct charitable gaming. This section details that an application for a license must be filed with the Department of Revenue. The department is responsible for reviewing these applications and determining eligibility. The law mandates that the department shall grant a license to conduct charitable gaming if the applicant meets all the requirements prescribed by the chapter and any rules adopted by the department. These requirements typically include demonstrating the charitable purpose of the organization, adherence to financial accountability standards, and compliance with operational regulations. The process involves thorough vetting to ensure that the gaming activities genuinely benefit charitable causes and are conducted in a manner that protects the public interest and prevents illegal activities. The Department of Revenue’s role is supervisory and regulatory, ensuring that all licensed organizations operate within the legal framework established by South Dakota law.

South Dakota law, specifically SDCL 42-7A, governs charitable gaming operations. This chapter outlines the requirements for obtaining and maintaining licenses, the types of games permitted, and the regulations surrounding the conduct of these games. A key aspect of these regulations is the prohibition of certain activities and the strict oversight of financial transactions to ensure that proceeds are used for charitable purposes. For instance, SDCL 42-7A-31 explicitly states that a licensee shall not permit any person to play a game if that person is under the age of eighteen years. Furthermore, the law mandates that all gross receipts from charitable gaming must be deposited into a separate bank account and that expenditures must be documented and directly related to the charitable purpose for which the license was granted. The law also details the permissible uses of net proceeds, which are primarily for the specified charitable purpose. It is crucial for licensees to maintain meticulous records of all gaming activities, including sales, expenses, and the distribution of net proceeds, as these records are subject to audit by the South Dakota Department of Revenue. Failure to adhere to these provisions can result in disciplinary actions, including license suspension or revocation, and potential civil or criminal penalties. The intent is to safeguard the integrity of charitable gaming and ensure public trust.

South Dakota law, specifically SDCL Chapter 42-7A, governs the operation of video lottery terminals (VLTs). This chapter and its associated administrative rules delineate the requirements for licensing, operation, and regulation of VLTs. A key aspect of this regulatory framework is the definition of a “video lottery establishment,” which is a premise where video lottery games are conducted. The law specifies that such establishments must be licensed by the South Dakota Department of Revenue. Furthermore, the law outlines various restrictions and prohibitions related to the conduct of video lottery. One such prohibition, as detailed in SDCL 42-7A-17, concerns the provision of credit or loans for the purpose of playing video lottery games. This provision is designed to prevent problem gambling and ensure that play is conducted with disposable income. Therefore, any establishment offering credit directly or indirectly for video lottery play would be in violation of this fundamental prohibition. The question tests the understanding of this specific prohibition within the broader context of video lottery regulation in South Dakota.

South Dakota Codified Law § 42-7B-4.1 outlines the requirements for obtaining a Class 1 gaming license, which is for an operator of a licensed gambling establishment. This statute specifies that an applicant must be at least twenty-one years of age. Furthermore, the law requires that an applicant demonstrate financial stability and good character. Financial stability is often assessed through an examination of the applicant’s business history, financial statements, and ability to fund the proposed gaming operation. Good character is evaluated through background checks, including criminal history, and a review of any past regulatory compliance issues. The licensing process also involves demonstrating a thorough understanding of and commitment to complying with all South Dakota gaming laws and regulations. This includes adherence to rules concerning game integrity, player protection, and responsible gaming practices. The South Dakota Commission on Gaming oversees this process, ensuring that all licensees meet the stringent standards set forth in the law to maintain the integrity of the state’s gaming industry. The age requirement of twenty-one is a fundamental eligibility criterion for all individuals directly involved in the operation of licensed gambling establishments.

South Dakota Codified Law (SDCL) Chapter 42-7B governs video lottery operations in the state. Specifically, SDCL 42-7B-10 outlines the requirements for video lottery retailers. A video lottery retailer must obtain a license from the South Dakota Department of Revenue. This license is subject to annual renewal and requires the retailer to comply with all applicable state and federal laws and regulations. The law specifies that video lottery terminals can only be operated in establishments that primarily serve alcoholic beverages and have a valid on-sale intoxicating liquor license. Furthermore, the retailer must provide a secure and accessible location for the video lottery terminals, ensuring they are not accessible to minors. The department conducts inspections to ensure compliance with these provisions. Failure to adhere to these licensing and operational requirements can result in penalties, including license suspension or revocation. The primary intent is to regulate the placement and operation of video lottery machines within licensed establishments to ensure fairness, prevent underage access, and generate revenue for the state.

The scenario involves a tribal casino operating in South Dakota. The question pertains to the regulation of promotional drawings, a common marketing practice in the gaming industry. South Dakota law, specifically SDCL Chapter 42-7B, governs charitable gaming and certain promotional activities. While tribal gaming is primarily regulated by federal law and tribal-state compacts, state laws can still apply to certain aspects, particularly when activities involve non-tribal members or occur off-reservation. Promotional drawings, even when conducted by a tribal entity within its jurisdiction, often require adherence to state consumer protection laws and regulations concerning fairness and transparency, especially if they are advertised to the general public. The South Dakota Commission on Gaming is the state agency responsible for overseeing gaming activities. The key distinction here is whether the promotional drawing is considered “gaming” in the sense of requiring a gaming license under state law, or if it falls under consumer promotion regulations. Promotional drawings are generally permitted under specific conditions that ensure they are not disguised lotteries or games of chance requiring a gaming license, and that they are conducted in a fair and transparent manner. This often involves rules about entry, prize disclosure, and winner selection. The South Dakota Codified Laws, particularly those related to consumer protection and advertising, would be the most relevant state-level statutes if the drawing is not exclusively considered a federal or tribal matter. However, the specific phrasing of the question asks about the *authority* to regulate, implying a state-level oversight role. Given that tribal gaming compacts often address the allocation of regulatory authority, the state’s role is often defined within these agreements. In the absence of specific compact provisions that cede all regulatory authority for promotional activities to the tribe, the state retains an interest in ensuring fair business practices and consumer protection. Therefore, the South Dakota Commission on Gaming, as the state’s primary gaming regulatory body, would have a basis for oversight, particularly concerning the fairness and legality of such promotions as they might impact the broader consumer market within the state. The specific wording of SDCL 42-7B, while focused on charitable gaming, sets a precedent for state oversight of games of chance and promotional activities.

South Dakota law, specifically SDCL Chapter 42-7A, governs the regulation of charitable gaming. This chapter outlines the permissible types of charitable gaming, licensing requirements, and operational standards designed to ensure that proceeds benefit charitable purposes. The law distinguishes between different forms of gaming, such as raffles, bingo, and pull tabs, each with specific rules regarding prize limits, ticket sales, and the use of proceeds. A key aspect of this regulation is the requirement for charitable organizations to obtain a license from the South Dakota Department of Revenue. This licensing process involves demonstrating the organization’s charitable status and its commitment to using gaming revenue for its stated charitable mission. The law also mandates detailed record-keeping and reporting to ensure accountability and transparency in the conduct of charitable gaming. Any deviation from these regulations can result in penalties, including license suspension or revocation. The intent is to prevent the misuse of gaming for private gain and to safeguard the public’s trust in charitable gaming activities. The regulation of charitable gaming in South Dakota is a complex framework designed to balance the opportunities for fundraising with the need for strict oversight to protect the integrity of charitable endeavors. The Department of Revenue plays a crucial role in enforcing these provisions.

South Dakota Codified Law (SDCL) Chapter 42-7B governs the regulation of video lottery in the state. Specifically, SDCL 42-7B-10 outlines the requirements for obtaining and maintaining a video lottery retailer license. This statute mandates that a retailer must be in good standing with all state and local taxing authorities and must not have been convicted of a felony within the preceding five years, among other qualifications. The South Dakota Department of Revenue is responsible for the administration and enforcement of these provisions. The question tests the understanding of the disqualifying factors for a video lottery retailer license based on past criminal convictions as stipulated in the relevant South Dakota law. The statute specifically addresses felony convictions within a defined look-back period. Therefore, a conviction for a misdemeanor offense, regardless of its recency, would not automatically disqualify an applicant under this particular provision, although other licensing criteria might apply. Similarly, while a felony conviction is a disqualifier, the specific timeframe of five years is crucial. A felony conviction from ten years prior would not be a disqualifier under this specific clause. The focus is on the direct statutory prohibition concerning felony convictions within the specified period.

South Dakota law, specifically SDCL Chapter 42-7A, governs charitable gaming activities. This chapter outlines the permissible types of games, the licensing requirements for organizations and individuals involved, and the regulations concerning the conduct of these games. A key aspect is the definition of eligible organizations that can conduct charitable gaming. Generally, these are non-profit entities that have been in existence for a specified period, typically at least three years, and whose primary purpose is charitable, educational, religious, social, or fraternal. The law also details the specific purposes for which net proceeds from charitable gaming can be used, which must align with the organization’s stated charitable mission. Prohibited uses include distribution to members or shareholders, or for political lobbying. The law further establishes the South Dakota Commission on Gaming, which is responsible for licensing, regulation, and enforcement of charitable gaming. This includes setting standards for equipment, record-keeping, and financial reporting to ensure transparency and prevent misuse of funds. The regulatory framework aims to protect the public and ensure that gaming proceeds genuinely benefit the charitable causes they are intended to support.

South Dakota law, specifically SDCL Chapter 42-7A, governs the operation of video lottery terminals (VLTs). A critical aspect of this regulation is the definition and application of “net winnings” for the purpose of calculating taxes and fees. Net winnings are generally defined as the total amount wagered minus the total amount paid out as prizes. For a video lottery operator holding a Class A license, the tax rate on net winnings is established by statute. While the specific tax rate can fluctuate based on legislative action, the fundamental calculation of net winnings remains consistent. For instance, if a VLT generates \( \$10,000 \) in total wagers and pays out \( \$8,000 \) in prizes over a given period, the net winnings would be \( \$10,000 – \$8,000 = \$2,000 \). The state then levies a tax on this \( \$2,000 \) amount. The South Dakota Department of Revenue is responsible for the administration and enforcement of these gaming laws, including the collection of taxes and fees from licensed operators. Understanding the distinction between gross receipts and net winnings is paramount for compliance, as it directly impacts the financial obligations of the licensee. The law also outlines specific reporting requirements and audit procedures to ensure accurate calculation and remittance of taxes.

South Dakota law, specifically under SDCL Chapter 42-7A, governs charitable gaming activities. When a licensed organization conducts a charitable bingo game, the net proceeds must be used for the charitable purpose for which the license was granted. The law dictates that no more than 50% of the gross proceeds from any single bingo game, or 50% of the total gross proceeds from all games conducted on a single occasion, may be paid out as prizes. For instance, if a charitable organization conducts a bingo event with total gross proceeds of $10,000, the maximum amount that can be paid out in prizes across all games during that event is $5,000. The remaining $5,000 would be considered net proceeds available for the charitable purpose. Furthermore, the law emphasizes transparency and accountability, requiring detailed record-keeping of all financial transactions related to the gaming activity. The purpose of these regulations is to ensure that the majority of funds generated through charitable gaming directly benefit the intended charitable causes and are not excessively consumed by prizes or administrative expenses. The law also specifies limitations on the types of prizes that can be offered, generally restricting them to cash or merchandise. The regulatory framework aims to prevent exploitation and ensure the integrity of charitable gaming operations within South Dakota, safeguarding public trust and the effectiveness of charitable endeavors.

South Dakota law, specifically SDCL Chapter 42-7A, governs the operation of video lottery terminals (VLTs). The law establishes a regulatory framework that includes licensing requirements for operators, manufacturers, and distributors, as well as detailed rules regarding the placement, operation, and auditing of VLTs. A key aspect of this framework is the allocation of revenue generated from VLT operations. The law mandates that a specific percentage of the gross revenue from VLTs is distributed to various entities. This distribution is crucial for understanding the economic impact and regulatory oversight of video lottery in South Dakota. The law specifies that 35% of the gross revenue is allocated to the South Dakota Lottery for operational expenses and the state’s general fund. Another 15% is designated for the Municipal Government Assistance Fund, which provides financial support to municipalities. Furthermore, 50% of the gross revenue is returned to the player as winnings. Therefore, when considering the distribution of gross revenue from VLTs in South Dakota, the percentages allocated to the state lottery, the municipal fund, and player winnings are fixed by statute.

The South Dakota Codified Law (SDCL) Chapter 42-7B governs the operation of electronic pull-tab devices. Specifically, SDCL 42-7B-11 outlines the requirements for the placement of these devices. This statute mandates that electronic pull-tab devices may only be located in establishments that hold a valid on-sale alcoholic beverage license and are primarily engaged in the sale of food and alcoholic beverages. The law intends to ensure that these gaming devices are situated in environments that are already regulated for alcohol consumption and where food service is a significant aspect of the business, thereby distinguishing them from establishments solely focused on other retail activities. The concept of “primary engagement” in food and beverage sales is crucial, meaning the core business activity must be the sale of these items, not incidental to another primary business. Therefore, a business whose main revenue stream and operational focus is not the sale of food and alcoholic beverages, even if it holds such a license, would not be permitted to house these devices under South Dakota law.

South Dakota law, specifically under SDCL Chapter 42-7A, governs charitable gaming. This chapter outlines the permissible forms of charitable gaming, including raffles, bingo, and pull-tabs, and establishes strict regulations for their operation. The law mandates that all proceeds from charitable gaming, after deducting allowable expenses, must be used for charitable purposes as defined by the law. Allowable expenses typically include costs directly associated with conducting the game, such as prizes, printing of tickets, and venue rental. The South Dakota Department of Revenue is responsible for licensing and regulating charitable gaming operations. Licensed organizations must maintain detailed records of all gaming activities, including revenue generated, expenses incurred, and the allocation of net proceeds to charitable causes. The law also specifies limitations on the types of prizes that can be offered and the frequency of gaming events. Any deviation from these regulations can result in penalties, including license suspension or revocation. The core principle is ensuring that funds raised through charitable gaming directly benefit the public good and are not diverted for private gain or excessive administrative costs.

South Dakota law, specifically SDCL Chapter 42-7A, governs the licensing and regulation of video lottery terminals. This chapter outlines the requirements for manufacturers, distributors, and operators of these machines. A key aspect of this regulation is the prohibition against certain individuals or entities from holding a video lottery license. SDCL 42-7A-45 explicitly states that a person who has been convicted of a felony, or a crime involving moral turpitude, is disqualified from obtaining or holding a video lottery license. This provision aims to ensure the integrity of the video lottery system by preventing individuals with a history of serious criminal behavior from participating in its operation. The intent is to safeguard public trust and prevent potential corruption or illicit activities associated with gaming. Therefore, any individual with such a conviction, regardless of whether it occurred within South Dakota or another jurisdiction, would be barred from licensure. The focus is on the nature of the offense and its classification as a felony or involving moral turpitude, rather than solely the location of the conviction.