The South Dakota Commission on Gaming

120 Industrial Dr., Suite 1,
Spearfish, SD 57783
605-578-3074
Website

The South Dakota Commission on Gaming was established under Chapter 42-07B of the South Dakota Codified Laws (SDCL) to regulate the limited slot machines and card games allowed by the state within the city of Deadwood. The licensing and regulation of the casinos which offer these games falls to the commission.

AVAILABLE GAMING LICENSES
Casino Operator License
Retail Operator License
Slot Machine Manufacturer/Distributor License
Slot Route Operator License

Nine tribes in South Dakota operate Class III gaming in the state pursuant to tribal-state gaming compacts.

Under the compacts, tribes must appoint a tribal gaming commission to supervise gaming activities, issue licenses, inspect premises where gaming is conducted and otherwise be responsible for enforcing compact provisions.

The state also serves a part in overseeing tribal gaming operations in the state, with soome of the state’s primary responsibilities being aiding in the licensing process and inspecting gaming machines.

In general, most tribes in South Dakota and authorized to operate between 250 and 500 gaming machines. However, through the extension of some compacts, some tribes may operate more gaming machines.

Tribal gaming compacts are up for review for every few years, with some earlier compacts being reviewed every two years, and the state’s most recent compact being reviewed every 10 years.

AVAILABLE GAMING LICENSES
The tribes must investigate and license employees at gaming establishments in the state.

GAMING TAX RATE
9 percent effective rate.

TAX PROMOTIONAL CREDITS
Free play value provided by an operator may not be included in the gross proceeds. Cash prizes deducted must be adjusted to not include an amount equal to 90 percent of the free play value provided by the operator.

WITHHOLDINGS ON WINNINGS
None

REVENUE SHARE
A majority of the tribes do not share any revenue with the state. However, in September 2016, the Flandreau Santee Sioux Tribe signed a new compact which will allow the tribe to offer more slot machines at their casino in exchange for payments to the state.

TAX PROMOTIONAL CREDITS
No

WITHHOLDINGS ON WINNINGS
A percentage of gaming winnings are not withheld for state tax purposes. However, federal law may require tribal casinos to issue a W-2G form to persons and may withhold winnings if certain conditions are met. For more information click here.

STATE USE OF REVENUE
Not available

TRIBAL USE OF REVENUE
As per the tribal-state compacts, some tribes, in their discretion, may contribute money to be used to provide public services to counties/cities near their gaming operations.

STATUTORY FUNDING REQUIREMENT
Not to exceed $30,000 from the Gaming Commission fund to the Department of Social Services

SELF-EXCLUSION
A licensee conducting gaming must develop a self-exclusion plan or voluntary exclusion plan to prevent any person, who informs the licensee of that person’s desire to participate in a self-exclusion or voluntary exclusion program, from participating in gaming.

COMPLIMENTARY ALCOHOLIC DRINKS
South Dakota’s gaming statutes and regulations prohibit casinos from offering complimentary alcoholic beverages to patrons.

ADVERTISING RESTRICTIONS
None

ON-PREMISE DISPLAY REQUIREMENT
Yes

AGE RESTRICTIONS
Gambling participants in South Dakota must be 21 years of age or older.

STATUTORY FUNDING REQUIREMENT
None

SELF-EXCLUSION
None

COMPLIMENTARY ALCOHOLIC DRINKS
Some casinos in the state are dry. Other casinos allow players to use rewards points to receive free and reduced alcoholic beverages.

ADVERTISING RESTRICTIONS
None

ON-PREMISE DISPLAY REQUIREMENT
None

AGE RESTRICTIONS
A person must be 21 years of old to participate in Class III gaming.

OPERATION ON HOLIDAYS
Yes

TESTING REQUIREMENTS
Commission on Gaming must approve all slot machines distributed in the state.

ANTI-MONEY LAUNDERING REQUIREMENTS
Federal compliance requirements.

SHIPPING REQUIREMENTS
Must obtain written authorization from the executive director of the SDCG.

RESTRICTIONS ON POLITICAL CONTRIBUTIONS
None

CREDIT OFFERED TO PATRONS
None

SMOKING BANS
No

CASHLESS GAMING & ALTERNATIVE PAYMENTS
Yes. South Dakota gaming statutes and regulations do not prohibit specific payment types. Additionally, South Dakota does not accept cryptocurrency as a form of payment.

TESTING REQUIREMENTS
Gaming devices must be tested and approved by a gaming test laboratory.

ANTI-MONEY LAUNDERING REQUIREMENTS
Federal compliance requirements under the Bank Secrecy Act.

SHIPPING REQUIREMENTS
Federal shipping requirements under the Johnson Act apply.

RESTRICTIONS ON POLITICAL CONTRIBUTIONS
Yes

CREDIT OFFERED TO PATRONS
No

SMOKING BANS
No

CASHLESS GAMING & ALTERNATIVE PAYMENTS
Yes. South Dakota tribal regulations do not prohibit specific payment types. Additionally, South Dakota does not accept cryptocurrency as a form of payment.