South Dakota Codified Laws
Chapter 07B - Limited Card Games, Slot Machines, Craps, Roulette, And Keno
Section 42-7B-4 - Definition of terms.

42-7B-4. Definition of terms.
Terms used in this chapter mean:
(1)"Adjusted gross proceeds," except in the case of the games of poker, gross proceeds less cash prizes. In games of poker, the term means any sum wagered in a poker hand that may be retained by the licensee as compensation which must be consistent with the minimum and maximum amount established by the commission;
(2)"Advance deposit sports wagering," a method of wagering on sporting events in which an eligible individual may, in an account established with a licensed operator or route operator, deposit money into an account and use the balance to pay for bets placed on the premises of a licensed gaming establishment as approved by the commission in the city of Deadwood;
(3)"Associated equipment," any equipment or any mechanical, electromechanical, or electronic device, component, or machine, or any combination thereof, that is used remotely or directly in connection with gaming or any gaming device;
(4)"Associated equipment manufacturer or distributor," any person who designs, assembles, fabricates, produces, constructs, sells, leases, distributes, or otherwise prepares a product or component of any associated equipment;
(5)"Bet," an amount placed as a wager in a game of chance or on the results of a sporting event or a contingency during a sporting event or the performance or nonperformance of an athlete or competitor during a sporting event;
(6)"Blackjack," a card game played by a maximum of seven players in which each player bets against the dealer. The object is to draw cards whose value will equal or approach twenty-one without exceeding that amount and win bets, payable by the dealer, if the player holds cards more valuable than the dealer's cards;
(7)"Cheating," any attempt to alter the elements of chance, method of selection, or criteria that determines the:
(a)Result of a game;
(b)Amount or frequency of payment in a game;
(c)Value of a wagering instrument;
(d)Value of a wagering credit;
(e)Result of a sporting event or an event within a sporting event; or
(f)Performance or nonperformance of an athlete or competitor during a sporting event;
(8)"Cheating device," any computerized, electronic, electrical, or mechanical device, or any software or hardware, or any combination thereof, that is designed, constructed, altered, or programmed to obtain an advantage at playing any game or placing any bet that is offered by a licensee, including a device that:
(a)Projects the outcome of the game or bet;
(b)Keeps track of cards played or cards prepared for play in the game;
(c)Tracks play and analyzes the probability of the occurrence of an event relating to the game or bet; or
(d)Tracks play and analyzes the strategy for playing or betting to be used in the game except as may be made available as part of an approved game or otherwise permitted by the commission;
(9)"City limits," the boundaries of the city of Deadwood as they existed on January 1, 1989;
(10)"Collegiate sporting event," an athletic competition or event between two or more colleges or universities;
(11)"Commission," the South Dakota Commission on Gaming;
(12)"Craps," a game in which the players place bets on the outcome of the roll or series of rolls of a pair of dice;
(13)"Fraudulent scheme," a dishonest or deceptive plan or arrangement used or intended to be used to play a game or slot machine or place a bet, that gives any person an advantage when playing a game or slot machine, or placing a bet;
(14)"Fraudulent technique," a dishonest or deceptive procedure or method of playing a game or slot machine, or placing a bet that gives any person an advantage when playing a game or slot machine, or placing a bet;
(15)"Gaming," limited card games, slot machines, craps, roulette, keno, and wagering on sporting events, as allowed and regulated by this chapter;
(16)"Gaming device," a poker table, a blackjack table, a slot machine, a craps table, a roulette table, or a keno number selection device;
(17)"Gaming employee," any person twenty-one years of age or older employed by an operator, retailer hosting gaming, or sports wagering services provider, who works directly with the gaming portion of that business and who must hold a support license;
(18)"Gaming equipment," any equipment used in gaming that is allowed by this chapter and which requires licensing;
(19)"Gaming license," any license issued by the commission pursuant to this chapter which authorizes any person to engage in gaming within the city of Deadwood;
(20)"Gaming property owner," any person other than a licensed retailer who owns real property where licensed gaming is conducted within the city of Deadwood. The term, gaming property owner, does not include any person who owned real property where licensed gaming was conducted within the city of Deadwood prior to January 1, 2010;
(21)"Historic restoration and preservation," the restoration and preservation of the city of Deadwood to maintain its historical background, cultural heritage, and necessary supporting infrastructures;
(22)"International sporting event," an international team or individual sporting event governed by an international sports federation or sport's governing body, including sporting events governed by the International Olympic Committee and the International Federation of Association Football;
(23)"Keno," a game in which players place bets by marking their selections on a blank ticket form with eighty numbered selection boxes and the outcome is determined by a number selection device;
(24)"Key employee," any executive, employee, or agent of a gaming licensee having the power to exercise a significant influence over a decision concerning any part of the operation of a gaming licensee;
(25)"Licensed gaming establishment," any premises licensed pursuant to this chapter where gaming is conducted;
(26)"Licensee," any person licensed under this chapter;
(27)"Licensing authority," the South Dakota Commission on Gaming;
(28)"Limited card games," any card games, including poker, blackjack, and variations of poker and blackjack, that are authorized by this chapter and regulated by the commission;
(29)"Minor league sporting event," a sporting event conducted by a sports league that has not been classified by the commission as a premier league in the sport;
(30)"Net municipal proceeds," the amount remitted to the city of Deadwood by the South Dakota Commission on Gaming;
(31)"Operator," any person who places poker tables, blackjack tables, slot machines, craps tables, roulette tables, keno number selection devices, or accepts or redeems bets, in the person's own business premises;
(32)"Poker," a card game played by players who are dealt cards by a nonplayer dealer. The object of the game is for each player to bet the superiority of the player's own hand and win the other players' bets by either making a bet no other player is willing to match or proving to hold the most valuable cards after all the betting is over. Poker includes draw, stud, low ball, or any combination thereof;
(33)"Professional sporting event," a sporting event, other than a minor league sporting event, in which two or more persons participate and receive remuneration in excess of their out-of-pocket expenses for participating in the event;
(34)"Retailer," any licensee who maintains gaming at the licensee's place of business within the city of Deadwood for use and operation by the public;
(35)"Retail space," the area where the retailer's business is principally conducted;
(36)"Roulette," a game in which players place bets on a single number or a range of numbers or the colors red or black or whether the number is odd or even or a combination thereof and the winning numbers and color are determined by a ball which is spun on a wheel;
(37)"Route operator," any person who, individually or jointly pursuant to an agreement whereby consideration is paid to accept or redeem bets or for the right to place poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device, engages in the business of accepting or redeeming bets or placing and operating poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device within the city of Deadwood;
(38)"Slot machines," any mechanical, electrical, or other device, contrivance, or machine which, upon insertion of a coin, token or similar object, or upon payment of any consideration whatsoever, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash premiums, merchandise, tokens, redeemable game credits or anything of value other than unredeemable free games whether the payoff is made automatically from the machines or in any other manner;
(39)"Slot machine manufacturer or distributor," any person who designs, assembles, fabricates, produces, constructs, sells, leases, distributes, or otherwise prepares a product or a component part of a slot machine, other than tables or cabinetry;
(40)"Sporting event," a contest or competition between individuals or teams the results of which are determined at least in part by the skill or ability of an individual athlete or competitor or a team which is competing in the event;
(41)"Sporting event official," any official as recognized by the respective sport’s governing body;
(42)"Sports wagering area," the designated location in a gaming establishment approved by the commission, in which sports wagering may be conducted;
(43)"Sports wagering services provider," a person who maintains or operates the software or hardware of a sports wagering system or facilitates wagering on a sporting event by providing a service, including data aggregation, risk management, computer service, furnishing information, and setting of odds;
(44)"Suitability" or "suitable," in relation to a person is the ability to be licensed by the commission and as to acts or practices, are lawful acts or practices;
(45)"Unsuitability" or "unsuitable," in relation to a person is the inability to be licensed by the commission because of prior acts, associations, or financial condition, and as to acts or practices, are those that would violate the statutes or rules or would be contrary to the declared legislative purpose of this chapter;
(46)"Wagering on sporting events" or "sports wagering," the acceptance of a wager on an authorized sporting event by any system of wagering authorized by the commission.

Source: SL 1989, ch 374, §3; SL 1990, ch 343, §11; SL 1993, ch 320, §4 rejected by referendum held September 14, 1993; SL 1993, ch 321, §1; SL 1994, ch 351, §100; SL 1995, ch 245, §1; SL 1997, ch 243, §§1, 2; SL 2010, ch 212, §1; SL 2015, ch 218, §3; SL 2016, ch 212, §1; SL 2018, ch 256, §1; SL 2019, ch 192, §§1, 2; SL 2021, ch 189, § 2.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 42 - Recreation and Sports

Chapter 07B - Limited Card Games, Slot Machines, Craps, Roulette, And Keno

Section 42-7B-1 - Limited gaming authorized within city of Deadwood.

Section 42-7B-2 - Authority conditioned--Repeal.

Section 42-7B-2.1 - Public policy.

Section 42-7B-3 - Regulation by commission.

Section 42-7B-4 - Definition of terms.

Section 42-7B-5 - Disposition of proceeds.

Section 42-7B-6 - South Dakota Commission on Gaming created.

Section 42-7B-7 - Promulgation of rules--Enforcement of chapter.

Section 42-7B-7.1 - Commission may suspend gaming at its discretion.

Section 42-7B-8 - Regular and special meetings--Quorum--Cost of special meeting requested by person other than chair, two members, or Governor.

Section 42-7B-8.1 - Purposes for executive or closed meetings.

Section 42-7B-9 - Appointment and removal of executive secretary--Duties--Salary.

Section 42-7B-9.1 - Executive secretary's access to files and records.

Section 42-7B-10 - Compensation for commission members--Expenses paid.

Section 42-7B-11 - Powers of commission.

Section 42-7B-12 - Appeal of final action of commission--Denial of license not appealable.

Section 42-7B-13 - Powers of attorney general pursuant to chapter.

Section 42-7B-14 - Maximum amount of bets.

Section 42-7B-15 - Approval of rules for certain games.

Section 42-7B-16 - Maximum number of gaming devices per license.

Section 42-7B-17 - Responsibilities of operator.

Section 42-7B-18 - Identification of retail floor plan--Approval--License granted only to retailer--Location of devices.

Section 42-7B-19 - Approval or disapproval of license.

Section 42-7B-19.1 - Denial of application--Reapplication.

Section 42-7B-19.2 - Investigation of license applicant--Failure to allow.

Section 42-7B-20 - Holding license by certain persons prohibited.

Section 42-7B-21 - Application fee and form.

Section 42-7B-22 - Licenses--Fees--Renewal--Violation as felony.

Section 42-7B-22.1 - Licensing of key employee may be required--Grounds--Time limit for response from employee--Written request to review status as key employee.

Section 42-7B-23 - Annual license stamp fee--Transfer of license stamp.

Section 42-7B-24 - License revocable--Not transferable.

Section 42-7B-25 - Qualifications for license as operator, gaming property owner, retailer, or provider.

Section 42-7B-25.1 - Internal control procedure for particular licensee may be established.

Section 42-7B-27 - Employee support license--Qualifications.

Section 42-7B-28 - Gaming tax.

Section 42-7B-28.1 - Additional tax on gaming proceeds.

Section 42-7B-28.2 - Calculation of adjusted gross proceeds.

Section 42-7B-29 - Return and remittance--Forms furnished by secretary.

Section 42-7B-30 - Violations of taxation provisions punishable as felony or misdemeanor.

Section 42-7B-31 - Failure to file--Penalties.

Section 42-7B-32 - Suspension or revocation of license--Grounds--Reprimand or monetary penalty.

Section 42-7B-33 - Person involved as manufacturer, distributor, operator, retailer, gaming property owner, provider, key employee, or support licensee--Qualifications.

Section 42-7B-35 - Age of participants--Violation as misdemeanor.

Section 42-7B-36 - Minimum payback value of credit.

Section 42-7B-37 - Exemption from federal law.

Section 42-7B-38 - Shipments of devices and machines deemed legal.

Section 42-7B-39 - Shipping records required to be maintained--Report by recipient--Transport out of state--Violation as felony.

Section 42-7B-39.1 - Shipping records delivered to commission.

Section 42-7B-39.2 - Destruction of seized slot machine.

Section 42-7B-40 - Licensed employee twenty-one years or older required on premises.

Section 42-7B-41 - False statement or records--Failure to keep books and records--Violations as felony.

Section 42-7B-42 - Unlawful acts by participants--Felony.

Section 42-7B-43 - Slot machines and wagering equipment--Security and audit specifications.

Section 42-7B-44 - Expenditure of public funds for purchase of certain machines--Proceeds--Placement.

Section 42-7B-45 - Extension of credit prohibited--Violation as felony.

Section 42-7B-46 - Historic restoration and preservation fund created.

Section 42-7B-47 - Gaming exempt from certain statutes.

Section 42-7B-48 - South Dakota Gaming Commission fund established--Disbursements.

Section 42-7B-48.1 - Distribution of funds following payment to City of Deadwood.

Section 42-7B-48.2 - General state aid to school districts reduced by payments from Gaming Commission fund.

Section 42-7B-48.3 - Gaming addiction treatment and counseling program grants from Gaming Commission fund.

Section 42-7B-49 - Acceptance and expenditure of funds by commission.

Section 42-7B-50 - Payment of expenditures.

Section 42-7B-52 - Taxes and fees to support identified entities.

Section 42-7B-53 - Statement of public policy--Equipment not subject to certain exclusive agreements.

Section 42-7B-54 - Anticipatory revenue bonds.

Section 42-7B-55 - Certain gambling statutes not applicable.

Section 42-7B-56 - Appointment of commission employee as law enforcement officer.

Section 42-7B-57 - Commission use of unmarked vehicles.

Section 42-7B-58 - Records--Confidentiality--Exception for official purposes and tax purposes.

Section 42-7B-59 - Certain communications between commission and secretary privileged and confidential.

Section 42-7B-60 - Exclusion or ejection of certain persons from gaming establishments necessary.

Section 42-7B-61 - List of persons to be excluded--Entrance in violation as misdemeanor--Penalty for failure to exclude or eject persons on list.

Section 42-7B-62 - Notice to excluded person.

Section 42-7B-64 - "Gaming contract" defined.

Section 42-7B-65 - Copy of any process or pleading to the commission.

Section 42-7B-66 - Copies of all proposed gaming contracts to the executive secretary.

Section 42-7B-67 - Notification by licensee of involvement in gaming operations out of state or on any Indian reservation.

Section 42-7B-68 - Fees for publication and reports.

Section 42-7B-69 - Manufacture of gaming devices or equipment for exportation.

Section 42-7B-70 - Provision applicable to manufacture of gaming devices and equipment for exportation.

Section 42-7B-71 - Provision of interlink communications service to slot machines--Not applicable in Deadwood.

Section 42-7B-72 - Lien for tax, penalty or interest due--Notice of tax lien filed with register of deeds--Priority.

Section 42-7B-73 - Distress warrant--Seizure and sale of personal property.

Section 42-7B-74 - Personal liability of corporate officers, member-managers or managers of limited liability companies, or partners--Bond or certificate of deposit.

Section 42-7B-75 - Cancellation or revocation of voluntarily surrendered license.

Section 42-7B-76 - Sports wagering receipts maintained separately.

Section 42-7B-77 - Advance deposit sports wagering--Account requirements.

Section 42-7B-78 - Advance deposit sports wagering--Establishing account--Duty to retain application--Application considered record.

Section 42-7B-79 - Advance deposit sports wagering restrictions--Required equipment.

Section 42-7B-80 - Investigation conducted by sport's governing body.

Section 42-7B-81 - Licensee's duty to report criminal or disciplinary proceeding--Commission may share information.

Section 42-7B-82 - Betting prohibited on certain events.

Section 42-7B-83 - Certain persons prohibited from betting.