Gambling Laws of South Dakota Legal State of Gambling

The Legal Gambling Status in South Dakota

In South Dakota, the realm of legalized gambling encompasses various activities regulated within specific parameters. Bingo games, governed by charitable gaming laws, operate legally under authorized organizations, providing a platform for charitable fundraising within the state. South Dakota hosts a state-operated lottery, offering various games such as scratch-offs, draw games, and lotto, providing entertainment while contributing to state funds. Tribal casinos constitute another facet of the state's gambling landscape, authorized by compact agreements with Native American tribes, enabling them to operate casinos with various gaming options. However, parimutuel betting on horse racing, once outlawed for decades, was later legalized in Deadwood, signifying a limited expansion of gambling activities within the city's confines. This assortment of permitted gambling activities in South Dakota reflects a regulatory framework that embraces specific forms of gaming while imposing constraints on others within the state's jurisdiction.

Legal Gambling Forms in South Dakota

In South Dakota, legalized gambling takes various forms within specific confines of the law. The state hosts a lottery system operated by the government, offering games such as scratch-offs and lotto to its residents. Tribal casinos, authorized through agreements with Native American tribes, provide gambling options within specific parameters. Limited-stakes gambling, including slots and table games, is permissible in Deadwood, a historical town recognized for its association with Wild West gambling lore. Charitable gaming, such as bingo, conducted under regulated organizations, also constitutes a legal form of gambling within South Dakota. However, online casinos and commercial casinos outside of Deadwood remain illegal under state regulations, delineating the boundaries of permissible gambling activities within the state.

The legal age for engaging in gambling activities, including lottery, bingo, tribal casinos, and limited-stakes gambling in Deadwood, South Dakota, is 21 years old.

Legalization of Lotteries in South Dakota

The genesis of the South Dakota Lottery dates back to a pivotal moment when voters approved its creation through a referendum in 1986, followed by official sanctioning in 1987. This monumental decision emerged from a voter referendum, marking a significant shift in the state's approach to gaming. With resounding public support, South Dakota embraced the establishment of its state-operated lottery system, setting the stage for the introduction of various games of chance, including scratch-offs, draw games, and lotto. The lottery's inception, rooted in a democratic mandate, signaled a transformative leap towards offering entertainment and contributing to state funds through legalized gaming activities.

Gambling in South Dakota – Licensing, Tax and Fees

In South Dakota, gaming operations are subject to specific taxation and licensing regulations outlined by the SDCL (South Dakota Codified Laws). The state imposes a nine percent tax on the adjusted gross proceeds generated from authorized gaming activities, as per SDCL 42-7B-28 & 28.1. Additionally, for each card game or slot machine situated within a licensed premise, a license stamp fee of two thousand dollars per annum is required under SDCL 42-7B-23. Gaming operators must adhere to a structured fee schedule, including an application fee of $1,000, a license fee of $1,000, and an annual renewal fee of $200, applicable within the fiscal year from July through June. These fees, alongside the taxation model, collectively form the framework for gaming-related financial obligations and licensing requirements for gaming entities operating within South Dakota's jurisdiction.