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South Dakota House Bill HB1203

South Dakota 2025 Regular Session

South Dakota House Bill HB1203 Compare Versions

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11 25.774.16 100th Legislative Session 1203
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44 2025 South Dakota Legislature
55 House Bill 1203
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1212 Introduced by: Representative Weisgram
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1414 Underscores indicate new language.
1515 Overstrikes indicate deleted language.
1616 An Act to authorize the operation of pari -mutuel historical horse racing machines, 1
1717 and to authorize a new tax. 2
1818 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
1919 Section 1. That § 42-7B-1 be AMENDED: 4
2020 42-7B-1. Limited card games, slot machines, craps, roulette, keno, pari-mutuel 5
2121 historical horse race wagering, and wagering on sporting events are hereby authorized, 6
2222 and may be operated, conducted, and maintained, within the city limits of the city of 7
2323 Deadwood, South Dakota, subject to the provisions of this chapter. 8
2424 Section 2. That § 42-7B-4 be AMENDED: 9
2525 42-7B-4. Terms used in this chapter mean: 10
2626 (1) "Adjusted gross proceeds," except in the case of the games of poker, gross 11
2727 proceeds less cash prizes. In games of poker, the term means any sum wagered 12
2828 in a poker hand that may be retained by the licensee as compensation which must 13
2929 be consistent with the minimum and maximum amount established by the 14
3030 commission; 15
3131 (2) "Advance deposit sports wagering," a method of wagering on sporting events in 16
3232 which an eligible individual may, in an account established with a licensed operator 17
3333 or route operator, deposit money into an account and use the balance to pay for 18
3434 bets placed on the premises of a licensed gaming establishment as approved by 19
3535 the commission in the city of Deadwood; 20
3636 (3) "Associated equipment," any equipment or any mechanical, electromechanical, or 21
3737 electronic device, component, or machine, or any combination thereof, that is used 22
3838 remotely or directly in connection with gaming or any gaming device; 23 25.774.16 2 1203
3939 Underscores indicate new language.
4040 Overstrikes indicate deleted language.
4141 (4) "Associated equipment manufacturer or distributor," any a person who designs, 1
4242 assembles, fabricates, produces, constructs, sells, leases, distributes, or otherwise 2
4343 prepares a product or component of any associated equipment; 3
4444 (5) "Bet," an amount placed as a wager in a game of chance or on the results of a 4
4545 sporting event or a contingency during a sporting event or the performance or 5
4646 nonperformance of an athlete or competitor during a sporting event; 6
4747 (6) "Blackjack," a card game played by a maximum of seven players in which each 7
4848 player bets against the dealer. The object is to draw cards whose value will equal 8
4949 or approach twenty-one without exceeding that amount and win bets, payable by 9
5050 the dealer, if the player holds cards more valuable than the dealer's cards; 10
5151 (7) "Cheating," any an attempt to alter the elements of chance, method of selection, 11
5252 or criteria that determines the: 12
5353 (a) Result of a game; 13
5454 (b) Amount or frequency of payment in a game; 14
5555 (c) Value of a wagering instrument; 15
5656 (d) Value of a wagering credit; 16
5757 (e) Result of a sporting event or an event within a sporting event; or 17
5858 (f) Performance or nonperformance of an athlete or competitor during a 18
5959 sporting event; 19
6060 (8) "Cheating device," any a computerized, electronic, electrical, or mechanical device, 20
6161 or any software or hardware, or any a combination thereof, that is designed, 21
6262 constructed, altered, or programmed to obtain an advantage at playing any game 22
6363 or placing any bet that is offered by a licensee, including a device that: 23
6464 (a) Projects the outcome of the game or bet; 24
6565 (b) Keeps track of cards played or cards prepared for play in the game; 25
6666 (c) Tracks play and analyzes the probability of the occurrence of an event 26
6767 relating to the game or bet; or 27
6868 (d) Tracks play and analyzes the strategy for playing or betting to be used in 28
6969 the game except as may be made available as part of an approved game or 29
7070 otherwise permitted by the commission; 30
7171 (9) "City limits," the boundaries of the city of Deadwood as they existed on January 1, 31
7272 1989; 32
7373 (10) "Collegiate sporting event," an athletic competition or event between two or more 33
7474 colleges or universities; 34
7575 (11) "Commission," the South Dakota Commission on Gaming; 35 25.774.16 3 1203
7676 Underscores indicate new language.
7777 Overstrikes indicate deleted language.
7878 (12) "Craps," a game in which the players place bets on the outcome of the roll or series 1
7979 of rolls of a pair of dice; 2
8080 (13) "Fraudulent scheme," a dishonest or deceptive plan or arrangement used or 3
8181 intended to be used to play a game or slot machine or place a bet, that gives any 4
8282 a person an advantage when playing a game or slot machine, or placing a bet; 5
8383 (14) "Fraudulent technique," a dishonest or deceptive procedure or method of playing 6
8484 a game or slot machine, or placing a bet that gives any person an advantage when 7
8585 playing a game or slot machine, or placing a bet; 8
8686 (15) "Gaming," limited card games, slot machines, craps, roulette, keno, pari-mutuel 9
8787 historical horse race wagering, and wagering on sporting events, as allowed and 10
8888 regulated by this chapter; 11
8989 (16) "Gaming device," a poker table, a blackjack table, a slot machine, a craps table, a 12
9090 roulette table, a pari-mutuel historical horse race machine, or a keno number 13
9191 selection device; 14
9292 (17) "Gaming employee," any a person twenty-one years of age or older employed by 15
9393 an operator, retailer hosting gaming, or sports wagering services provider, who 16
9494 works directly with the gaming portion of that business and who must hold a 17
9595 support license; 18
9696 (18) "Gaming equipment," any equipment used in gaming that is allowed by this chapter 19
9797 and which requires licensing; 20
9898 (19) "Gaming license," any a license issued by the commission pursuant to this chapter 21
9999 which authorizes any person to engage in gaming within the city of Deadwood; 22
100100 (20) "Gaming property owner," any a person other than a licensed retailer who owns 23
101101 real property where licensed gaming is conducted within the city of Deadwood. The 24
102102 term, gaming property owner, provided the term does not include any a person 25
103103 who owned real property where licensed gaming was conducted within the city of 26
104104 Deadwood prior to January 1, 2010; 27
105105 (21) "Historic restoration and preservation," the restoration and preservation of the city 28
106106 of Deadwood to maintain its historical background, cultural heritage, and necessary 29
107107 supporting infrastructures; 30
108108 (22) "International sporting event," an international team or individual sporting event 31
109109 governed by an international sports federation or sport's governing body, including 32
110110 sporting events governed by the International Olympic Committee and the 33
111111 International Federation of Association Football; 34 25.774.16 4 1203
112112 Underscores indicate new language.
113113 Overstrikes indicate deleted language.
114114 (23) "Keno," a game in which players place bets by marking their selections on a blank 1
115115 ticket form with eighty numbered selection boxes and the outcome is determined 2
116116 by a number selection device; 3
117117 (24) "Key employee," any an executive, employee, or agent of a gaming licensee having 4
118118 the power to exercise a significant influence over a decision concerning any part of 5
119119 the operation of a gaming licensee; 6
120120 (25) "Licensed gaming establishment," any a premises licensed pursuant to this chapter 7
121121 where gaming is conducted; 8
122122 (26) "Licensee," any a person licensed under this chapter; 9
123123 (27) "Licensing authority," the South Dakota Commission on Gaming; 10
124124 (28) "Limited card games," any a card games game, including poker, blackjack, and 11
125125 variations of poker and blackjack, that are authorized by this chapter and regulated 12
126126 by the commission; 13
127127 (29) "Minor league sporting event," a sporting event conducted by a sports league that 14
128128 has not been classified by the commission as a premier league in the sport; 15
129129 (30) "Net municipal proceeds," the amount remitted to the city of Deadwood by the 16
130130 South Dakota Commission on Gaming; 17
131131 (31) "Operator," any a person who places poker tables, blackjack tables, slot machines, 18
132132 craps tables, pari-mutuel historical horse race machines, roulette tables, keno 19
133133 number selection devices, or accepts or redeems bets, in the person's own business 20
134134 premises; 21
135135 (32) "Poker," a card game played by players who are dealt cards by a nonplayer dealer. 22
136136 The, where the object of the game is for each player to bet the superiority of the 23
137137 player's own hand and win the other players' bets by either making a bet no other 24
138138 player is willing to match or proving to hold the most valuable cards after all the 25
139139 betting is over. Poker, providing the term includes draw, stud, low ball, or any a 26
140140 combination thereof; 27
141141 (33) "Professional sporting event," a sporting event, other than a minor league sporting 28
142142 event, in which two or more persons participate and receive remuneration in excess 29
143143 of their out-of-pocket expenses for participating in the event; 30
144144 (34) "Retailer," any a licensee who maintains gaming at the licensee's place of business 31
145145 within the city of Deadwood for use and operation by the public; 32
146146 (35) "Retail space," the area where the retailer's business is principally conducted; 33
147147 (36) "Roulette," a game in which players place bets on a single number or a range of 34
148148 numbers or the colors red or black or whether the number is odd or even or a 35 25.774.16 5 1203
149149 Underscores indicate new language.
150150 Overstrikes indicate deleted language.
151151 combination thereof and the winning numbers and color are determined by a ball 1
152152 which is spun on a wheel; 2
153153 (37) "Route operator," any a person who, individually or jointly, pursuant to an 3
154154 agreement whereby consideration is paid to accept or redeem bets or for the right 4
155155 to place poker tables, blackjack tables, slot machines, craps tables, pari-mutuel 5
156156 historical horse race machines, roulette tables, or a keno number selection device, 6
157157 engages in the business of accepting or redeeming bets or placing and operating 7
158158 poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a 8
159159 keno number selection device within the city of Deadwood; 9
160160 (38) "Slot machines," any mechanical, electrical, or other device , contrivance, or 10
161161 machine which, upon insertion of a coin, token or similar object, or upon payment 11
162162 of any consideration whatsoever, is available to play or operate, the play or 12
163163 operation of which, whether by reason of the skill of the operator or application of 13
164164 the element of chance, or both, may deliver or entitle the person playing or 14
165165 operating the machine to receive cash premiums, merchandise, tokens, 15
166166 redeemable game credits or anything of value other than unredeemable free games 16
167167 whether the payoff is made automatically from the machines or in any other 17
168168 manner; 18
169169 (39) "Slot machine manufacturer or distributor," any a person who designs, assembles, 19
170170 fabricates, produces, constructs, sells, leases, distributes, or otherwise prepares a 20
171171 product or a component part of a slot machine, other than tables or cabinetry; 21
172172 (40) "Sporting event," a contest or competition between individuals or teams the results 22
173173 of which are determined at least in part by the skill or ability of an individual athlete 23
174174 or competitor or a team which is competing in the event; 24
175175 (41) "Sporting event official," any an official as recognized by the respective sport’s 25
176176 governing body; 26
177177 (42) "Sports wagering area," the designated location in a gaming establishment 27
178178 approved by the commission, in which sports wagering may be conducted; 28
179179 (43) "Sports wagering services provider," a person who maintains or operates the 29
180180 software or hardware of a sports wagering system or facilitates wagering on a 30
181181 sporting event by providing a service, including data aggregation, risk 31
182182 management, computer service, furnishing information, and setting of odds; 32
183183 (44) "Suitability" or "suitable," in relation to a person is the ability to be licensed by the 33
184184 commission and as to acts or practices, are lawful acts or practices; 34 25.774.16 6 1203
185185 Underscores indicate new language.
186186 Overstrikes indicate deleted language.
187187 (45) "Unsuitability" or "unsuitable," in relation to a person is the inability to be licensed 1
188188 by the commission because of prior acts, associations, or financial condition, and 2
189189 as to acts or practices, are those that would violate the statutes or rules or would 3
190190 be contrary to the declared legislative purpose of this chapter; and 4
191191 (46) "Wagering on sporting events" or "sports wagering," the acceptance of a wager on 5
192192 an authorized sporting event by any a system of wagering authorized by the 6
193193 commission. 7
194194 Section 3. That § 42-7B-7 be AMENDED: 8
195195 42-7B-7. The commission may promulgate rules, pursuant to chapter 1-26, for 9
196196 the orderly transaction and conduct of its business and the substantive rules that it may 10
197197 determine proper concerning: 11
198198 (1) The issuance, revocation, and suspension of gaming licensees; 12
199199 (2) The division of limited card games, slot machines, craps, roulette, keno, pari-13
200200 mutuel historical horse race machines, or devices used to accept or redeem bets, 14
201201 that may be placed in any building or retail business; 15
202202 (3) The conduct and operation of gaming; 16
203203 (4) Variations of limited card games, craps, or roulette; and 17
204204 (5) Any other things necessary to carry out the purposes of this chapter. 18
205205 The commission may also promulgate rules necessary to administer complaints 19
206206 received from the public and conduct such other investigations and inspections into the 20
207207 conduct of the games and the licensees and the maintenance of the equipment as the 21
208208 commission deems necessary and proper. License issuance, suspension, and revocation 22
209209 are contested cases within the meaning of chapter 1-26. The commission's rules may 23
210210 provide procedures for summary suspension of any license issued under this chapter and 24
211211 shall provide for subsequent contested case hearings before suspensions become final or 25
212212 a license is revoked. The commission may apply for injunctive or declaratory relief to 26
213213 enforce the provisions of this chapter and any rules promulgated thereunder. Action by 27
214214 the commission may not limit the authority of the state's attorney or attorney general 28
215215 from enforcing criminal actions. 29
216216 Section 4. That § 42-7B-15 be AMENDED: 30
217217 42-7B-15. A licensed gaming establishment shall obtain approval of its rules for 31
218218 blackjack, poker, craps, roulette, keno, pari-mutuel historical horse race wagering, and 32 25.774.16 7 1203
219219 Underscores indicate new language.
220220 Overstrikes indicate deleted language.
221221 sports wagering from the commission and clearly post the approved rules within plain view 1
222222 of any applicable gaming table or area in which the gaming is offered for play. 2
223223 Section 5. That § 42-7B-16 be AMENDED: 3
224224 42-7B-16. A full complement The number of gaming devices, excluding pari-4
225225 mutuel historical horse race machines, may not exceed thirty per retail license. 5
226226 The number pari-mutuel historical horse race machines may not exceed four per 6
227227 retail license. 7
228228 Section 6. That § 42-7B-18 be AMENDED: 8
229229 42-7B-18. The retail space of a licensee shall must be identified by a physical 9
230230 layout within a building, called the retail floor plan. The retail floor plan showing the 10
231231 location of each gaming device shall must be submitted to the commission at the time of 11
232232 application, and is subject to prior approval by the Deadwood City Commission. Approval 12
233233 is subject to gaming rules and those rules pertaining to public health, safety, good order 13
234234 and general welfare of the City of Deadwood. The retail gaming license may only be 14
235235 granted to the retailer. All gaming devices shall must be located within the retail space of 15
236236 the business. The number of gaming devices may not exceed thirty per building the limit 16
237237 set forth in § 42-7B-16. 17
238238 Section 7. That § 42-7B-28 be AMENDED: 18
239239 42-7B-28. There is hereby imposed an eight percent gaming tax on the adjusted 19
240240 gross proceeds of gaming allowed by this chapter, except pari-mutuel historical horse race 20
241241 wagering. 21
242242 Section 8. That § 42-7B-28.1 be AMENDED: 22
243243 42-7B-28.1. In addition to the gaming tax imposed by § 42-7B-28, there is hereby 23
244244 imposed an additional one percent tax on the adjusted gross proceeds of gaming allowed 24
245245 by this chapter, except pari-mutuel historical horse race wagering. The tax shall be paid 25
246246 to the commission and transferred to the general fund on a monthly basis notwithstanding 26
247247 the provisions of §§ 42-7B-48 and 42-7B-48.1. 27
248248 Section 9. That a NEW SECTION be added to chapter 42-7B: 28 25.774.16 8 1203
249249 Underscores indicate new language.
250250 Overstrikes indicate deleted language.
251251 There is imposed on pari-mutuel historical horse race wagering, a tax of nine 1
252252 percent on the net winnings of pari-mutuel historical horse race wagering. 2
253253 For purposes of taxation, net winnings are the total payout from a pari -mutuel 3
254254 betting pool in a historical horse race. 4
255255 Section 10. That § 42-7B-48 be AMENDED: 5
256256 42-7B-48. There is established within the state treasury the South Dakota Gaming 6
257257 Commission fund, into which shall be deposited the proceeds from the a gaming tax, 7
258258 license stamp fees, license fees, application fees, the net proceeds generated by the 8
259259 operation of the five-cent slot machines, and the initial fund is continuously appropriated 9
260260 for the purposes specified in this section. All funds moneys received by the commission 10
261261 shall must be set forth in an informational budget as described in § 4-7-7.2 and be 11
262262 annually reviewed by the Legislature. Any disbursement of moneys from the Gaming 12
263263 Commission fund shall, except moneys from the gaming tax imposed pursuant to section 13
264264 9 of this Act, must be by authorization of the executive secretary for any of the following 14
265265 purposes: 15
266266 (1) Forty percent of the gaming tax collected shall be transferred to the tourism 16
267267 promotion fund created in § 1-52-17, and ten percent of the gaming tax collected 17
268268 shall be paid to Lawrence County; 18
269269 (2) The expenses of the commission for administration and operation including 19
270270 litigation and enforcement of this chapter and chapter 42-7 and for grants as 20
271271 provided by § 42-7B-48.3; and 21
272272 (3) All funds remaining after the payments provided in subdivisions (1) and (2), less 22
273273 one hundred thousand dollars which shall be transferred to the historical 23
274274 preservation loan and grant fund created in § 1-19A-13.1 constitute the net 24
275275 municipal proceeds and shall be disbursed at least quarterly to the City of 25
276276 Deadwood for deposit in the historic restoration and preservation fund. 26
277277 Section 11. That § 42-7B-48.1 be AMENDED: 27
278278 42-7B-48.1. Disbursements from the Gaming Commission fund shall must be as 28
279279 set forth in made pursuant to § 42-7B-48, until such time as the net municipal proceeds 29
280280 paid to the City of Deadwood equals equal six million eight hundred thousand dollars for 30
281281 each year, and after payment of commission expenses pursuant to subdivision 42-7B-31
282282 48(2), and after payment of one hundred thousand dollars to the State Historical 32
283283 Preservation Grant and Loan fund pursuant to subdivision 42-7B-48(3). Thereafter Except 33 25.774.16 9 1203
284284 Underscores indicate new language.
285285 Overstrikes indicate deleted language.
286286 as provided in section 12 of this Act, all remaining funds shall moneys must be distributed 1
287287 as follows: 2
288288 (1) Seventy percent to the state general fund; 3
289289 (2) Ten percent to be distributed to municipalities in Lawrence County, except the City 4
290290 of Deadwood, pro rata according to their population; 5
291291 (3) Ten percent to be distributed to school districts, pro rata based upon the previous 6
292292 year's average daily membership, located in whole or in part, in Lawrence County. 7
293293 For any school district located only partly in Lawrence County, only that portion of 8
294294 the district's average daily attendance which represents students residing in 9
295295 Lawrence County shall must be considered in calculating the proration required by 10
296296 this subdivision; and 11
297297 (4) Ten percent to the City of Deadwood for deposit in the historic restoration and 12
298298 preservation fund. 13
299299 Section 12. That a NEW SECTION be added to chapter 42-7B: 14
300300 Moneys collected pursuant to section 9 of this Act must be distributed as follows: 15
301301 (1) Forty-five percent to special racing revolving fund; 16
302302 (2) Five percent to the South Dakota-bred racing fund; and 17
303303 (3) Fifty percent according to the distribution provided in § 42-7B-48.1. 18