South Dakota Codified Laws
Chapter 07A - State Lottery
Section 42-7A-37 - Requirements for licensed video lottery machines.

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.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 42 - Recreation and Sports

Chapter 07A - State Lottery

Section 42-7A-1 - Definitions.

Section 42-7A-2 - South Dakota Lottery established--Administration by executive director--Overall control and operation of games.

Section 42-7A-3 - Executive director--Salary--Employment of personnel.

Section 42-7A-4 - Functions of executive director.

Section 42-7A-5 - Competitive bidding required before entering into contracts.

Section 42-7A-6 - Investigation of vendors.

Section 42-7A-7 - Subpoenas--Order to comply--Punishment by contempt.

Section 42-7A-8 - Additional functions of executive director.

Section 42-7A-9 - Lottery expenses and prizes to be paid from lottery funds--General funds not to be used or obligated--Exception.

Section 42-7A-10 - Selection of lottery retailers.

Section 42-7A-11 - Lottery retailers application fee--Annual renewal of contracts--Contracts not transferable or assignable.

Section 42-7A-12 - Issuance of lottery retailer certificate--Display--Sales only at location on certificate.

Section 42-7A-13 - Qualifications of lottery retailer.

Section 42-7A-14 - Persons ineligible to be licensed by the lottery--Criminal background investigation of applicants, licensees, vendors, and employees.

Section 42-7A-15 - Partnership as lottery retailer or video lottery machine operator.

Section 42-7A-16 - Association or corporation as lottery retailer or video lottery machine operator.

Section 42-7A-17 - Lottery Commission created--Appointment of members--Term of office--Qualifications--Chair.

Section 42-7A-18 - Meetings--Quorum.

Section 42-7A-19 - Commission to establish lottery operation policy--Approval of major procurements.

Section 42-7A-19.1 - Sale of lottery products within exterior boundaries of Indian reservations.

Section 42-7A-20 - Mileage and per diem paid commission members--Exception.

Section 42-7A-21 - Rules and regulations.

Section 42-7A-22 - Lottery operating fund--Continuous appropriation--Informational budget--Disbursements.

Section 42-7A-23 - Amount from sale of tickets allocated for payment of prizes--Means of payment for prizes.

Section 42-7A-24 - Transfer of net proceeds to state funds.

Section 42-7A-24.1 - Acceptance and expenditure of funds obtained from federal sources, gifts, contributions and other sources.

Section 42-7A-24.2 - Payment of expenditures.

Section 42-7A-25 - Employment and direction of investigative personnel.

Section 42-7A-26 - Appointment of assistant attorney general to assist in enforcement.

Section 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.

Section 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.

Section 42-7A-29 - Removal from office for violation of conflict of interest provisions--Application of other conflict of interest statutes.

Section 42-7A-30 - Counterfeiting lottery tickets Class 6 felony.

Section 42-7A-31 - Sale of tickets at price greater than that fixed by rules prohibited--Sale by authorized retailer only--Violation.

Section 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.

Section 42-7A-33 - Purchase of ticket or payment of prize to certain persons prohibited--Exceptions.

Section 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.

Section 42-7A-36 - Certain mechanical or electronic devices prohibited--Violation as felony--Devices as nuisances.

Section 42-7A-37 - Requirements for licensed video lottery machines.

Section 42-7A-37.1 - Restrictions on licensed establishment.

Section 42-7A-38 - Limit on amount played and awards given.

Section 42-7A-39 - Display of license for video lottery machine--Confiscation--Violation as felony.

Section 42-7A-40 - Examination of video lottery machines--Costs paid by manufacturer--Contract for examination.

Section 42-7A-41 - Video lottery machine manufacturer, distributor, operator, and establishment licenses required--Fees.

Section 42-7A-41.1 - Video lottery operating fund established.

Section 42-7A-41.2 - Posting video lottery odds required.

Section 42-7A-42 - Multiple types of licenses prohibited.

Section 42-7A-43 - Background investigation of video lottery licensees--Eligibility requirements.

Section 42-7A-44 - Rules for placement of video lottery machines--Number limited--Placement in bar or lounge with on-sale license.

Section 42-7A-44.1 - Denial or revocation of license for noncompliance.

Section 42-7A-45 - Video lottery machine income--Remittance to state--False report as felony--Records--Penalty.

Section 42-7A-46 - Tampering with video lottery machine as misdemeanor.

Section 42-7A-47 - Manipulating outcome, payoff, or operation of video lottery machine as felony.

Section 42-7A-48 - Age limit and legal hours of operation for video lottery machines.

Section 42-7A-49 - Lottery products on Indian reservations authorized.

Section 42-7A-50 - Confidentiality of lottery records.

Section 42-7A-51 - Lottery setoff program established--Computerized file of persons owing state.

Section 42-7A-52 - Debt setoff from prize due--Notice of right to appeal--Time limitation--Transfer of setoff amount to agency.

Section 42-7A-53 - Commission, employees, and lottery discharged from liability.

Section 42-7A-54 - Apportionment of prize among agencies--Priority of child support payments.

Section 42-7A-55 - Collection of remainder of debt.

Section 42-7A-56 - Public policy declared.

Section 42-7A-57 - Approval or disapproval of license applications.

Section 42-7A-58 - Reapplication for license after denial or revocation.

Section 42-7A-59 - False statements in license applications--Perjury.

Section 42-7A-60 - Executive or closed meetings permitted.

Section 42-7A-62 - Collection of fee--Deposit in general fund.

Section 42-7A-63 - State's percentage of net machine income--Deposit into general fund and video lottery operating fund.

Section 42-7A-64 - Additional criteria for on-sale alcoholic beverage licensees in video lottery licensed establishments.