South Dakota Administrative Rules Title 48 - South Dakota Lottery

South Dakota Administrative Rules Title 48 is entirely dedicated to the South Dakota Lottery. These regulations are crucial for the establishment, operation, and oversight of all lottery games and related activities within the state. The South Dakota Lottery is a state agency, operating under the South Dakota Lottery Commission, with the mission to generate revenue for state programs and provide entertainment to its citizens, while ensuring integrity, security, honesty, and fairness in its operations.

Title 48 is organized into distinct articles, each addressing a specific type of lottery game or a general regulatory area:

Article 48:01 - Instant Lottery Requirements:

This article covers the rules for scratch-off tickets, including definitions, requirements for retailers (licensing, duties, contracts), prize claiming procedures (for various prize amounts), and rules regarding ticket ownership. It also has specific regulations for instant lottery ticket sales on Indian reservations.

Article 48:02 - Video Lottery Requirements:

This is a significant part of the regulations, as video lottery is a prominent form of gaming in South Dakota. It details comprehensive rules for the licensing, operation, and regulation of video lottery machines. Key areas include:

General Provisions: Definitions and overall framework.

Licensing Qualifications: Requirements for manufacturers, distributors, operators, and establishments (locations where machines are placed, typically where alcoholic beverages are dispensed). This includes detailed application processes and background checks.

Duties of Licensees: Specific responsibilities for establishments, such as providing secure premises, preventing tampering, ensuring communication lines are functional, preventing play by underage or intoxicated individuals, maintaining change, and promptly reporting malfunctions.

Accounting Procedures: Rules for financial reporting and the split of net machine income between the state and operators.

Machine Specifications: Mechanical and electronic requirements for video lottery machines, including hardware and software standards.

Transportation, Registration, Maintenance, and Location of Machines: Rules governing the movement, tracking, upkeep, and placement of machines within establishments.

Payment of Credits: Procedures for paying out winnings to players.

Enforcement: Provisions for addressing violations and ensuring compliance.

Article 48:03 - On-line Lottery Requirements:

This article focuses on draw games, which involve selecting numbers for a potential prize. It covers:

General Provisions: Definitions and overall rules.

Sale and Distribution of On-line Tickets: Procedures for retailers selling tickets.

On-line Ticket Payment and Validation: How winning tickets are verified and prizes are claimed.

On-line Drawings: Rules for how drawings are conducted, often including requirements for public access and recording.

Game-Specific Rules: Detailed rules for individual multi-state and state-specific games, such as:

Powerball

Mega Millions

Lucky for Life

Lotto America

Dakota Cash

Wild Card 2 (if still active)

Rules may incorporate by reference the official game rules of the Multi-State Lottery Association (MUSL) for multi-state games.

On-line ticket sales on Indian reservations are also addressed.

In essence, South Dakota Administrative Rules Title 48 provides the granular detail necessary for the South Dakota Lottery to manage a complex enterprise involving various types of games, numerous licensed retailers and operators, and significant revenue generation. These regulations are vital for maintaining the integrity of lottery operations, protecting players, and ensuring that proceeds benefit the state as intended.

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