Research

State of Play

Explore the national and state-by-state impact of the casino gaming industry, as well as key regulatory and statutory requirements in each state.

  • Number of Casinos 35

  • Economic Impact $457.3 Million

  • Jobs Supported 4,238

  • Tax Impact & Tribal Revenue Share $77.8 Million

  • Gross Gaming Revenue $294.0 Million

Size of circle indicates number of casinos in the area.

All location data is as of Dec. 31, 2021.

  • Number of Casinos 24

  • Economic Impact $166.2 Million

  • Jobs Supported 1,175

  • Tax Impact $43.2 Million

  • Gross Gaming Revenue $146.1 Million (2021)

Size of circle indicates number of casinos in the area.

All location data is as of Dec. 31, 2021.

  • Number of Casinos 11

  • Economic Impact $291.1 Million

  • Jobs Supported 3,063

  • Tax Impact & Tribal Revenue Share $34.6 Million

  • Gross Gaming Revenue $148.0 Million (2016)

Size of circle indicates number of casinos in the area.

All location data is as of Dec. 31, 2021.

The South Dakota Commission on Gaming

87 Sherman Street
Deadwood, SD 57732
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

TAX ALLOCATION
The gaming tax is distributed by allocating 40 percent to the Tourism Promotion Fund, 10 percent to Lawrence County and the remaining 50 percent in the following manner:
The first $100,000 to the State Historical Preservation Grant and Loan Fund and up to $30,000 can be distributed to the Department of Social Services for Gambling Addiction Treatment and Counseling Program grants.
The next $6.8 million is to go to City of Deadwood.
If any remaining funds, to be disbursed as follows:
  • 70% to the state general fund;
  • 10% municipalities in Lawrence County (except Deadwood);
  • 10% school districts in Lawrence County; and
  • 10% to Deadwood for deposit in historic restoration and preservation fund.

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
None

COMPLIMENTARY ALCOHOLIC DRINKS
Yes

ADVERTISING RESTRICTIONS
None

ON-PREMISE DISPLAY REQUIREMENT
Yes

AGE RESTRICTIONS
21+ years of age to gamble

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

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

AUTHORIZED OPERATORS
Casinos located within the city of Deadwood

MOBILE/ONLINE
Allowed on the premises of casinos located within the city of Deadwood

TAX RATE
9 percent

INITIAL LICENSING FEE
$200 paid on an annual basis

LICENSE RENEWAL FEE
$200 paid on an annual basis

AMATEUR RESTRICTIONS
Wagering on the following types of events are prohibited:

  • Bets on high-school sports.
  • Proposition bets on college sports.
  • Bets on South Dakota college sports.

OFFICIAL DATA MANDATE
None

INTEGRITY FEE
None