An Act to allow a city or county to impose local restrictions and regulations on video lottery.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 42-7A-37 be AMENDED:
42-7A-37. Each video lottery machine licensed under this chapter:
(1) Shall
May
offer only
games licensed by the South Dakota Lottery and authorized by the
commission;
(2) May not have any means of manipulation that affect the random probabilities of winning a video lottery game;
(3) Shall
Must
have one or
more mechanisms that accept coins, cash in the form of bills, or a
ticket voucher. The mechanisms
shall
must be
designed to prevent obtaining credits without paying by stringing,
slamming, drilling, or other means. If
such
the attempts
involve physical tampering, the machine
shall
must suspend
itself from operation until reset;
(4) Shall
Must
have
nonresettable meters housed in any readily accessible locked machine
area that keep a permanent record of all cash and ticket vouchers
inserted into the machine, all refunds of winnings made by the
machine's printer, credits played for video lottery games, and
credits won by video lottery players;
(5) Shall
Must
be capable of
printing a ticket voucher stating the value of the prize for the
player at the completion of each video lottery game, the time of day
in a
twenty‑four hour
twenty-four-hour
format showing hours and minutes, the date, the machine serial
number, the sequential number of the ticket vouchers, and an
encrypted validation number from which the validity of the prize may
be determined;
(6) Shall
May
have accounting
software that keeps an electronic record which includes,
but is not limited to,
the following: total cash inserted into the machine, total cash value
of ticket vouchers inserted into the machine, the value of winning
tickets claimed by players, the total video lottery credits played
and the total video lottery credits awarded by a video lottery game,
and the payback percentage credited players of each video lottery
game;
(7) Shall
Must
be linked under
a central communications system to provide auditing program
information as approved by the commission.
The communications system shall be installed and all testing
conducted no later than December 1, 1989.
Until such time, all accounting of machine transactions
shall
must be audited
by electronic records maintained by each video lottery machine as
required in subdivision (6) of this section. In no event may the
communications system approved by the commission limit participation
to only one manufacturer of video lottery machines by either the cost
in implementing the necessary program modifications to communicate or
the inability to communicate with the central communications system.
Nothing in this section
may be construed as requiring
requires a
machine that only offers video lottery games to be on‑line or
in constant communication with a central computer;
and
(8) May not be placed for public use unless the placement of the video lottery machine is allowed pursuant to any ordinance or regulation enacted by a municipality or county pursuant to section 3 of this Act.
Section 2. That 42-7A-37.1 be AMENDED:
42-7A-37.1.
A business
licensed pursuant to subdivisions 35-4-2(12)
and (16) may not be a licensed establishment for video lottery
placement pursuant to subdivision 42-7A-1(6)
unless
it is a bar or lounge:
(1) It is a bar or lounge; and
(2) It is located in a municipality and county where a video lottery machine is allowed pursuant to any ordinance or regulation enacted by the municipality or county.
For the purposes of this section,
a bar or lounge is an enterprise primarily maintained and operated
for the selling, dispensing, and consumption of alcoholic beverages
on the premises and may also include the sale and service of food. A
bar or lounge may be physically connected to another enterprise
within the same building, which enterprise may be owned or operated
by the same person. There may be interior access between a bar or
lounge and a connected enterprise. However, there
shall
must be a floor
to ceiling opaque wall separation between the two enterprises. A
separation wall may be constructed to provide visual and physical
access for employees from areas in the building not open to the
public. The bar or lounge
shall
must have a
separate entrance and exit. A separate entrance and exit is not
required if entrance to the bar may only be obtained from the other
distinct enterprise and the public may not enter the other enterprise
by first passing through the bar or lounge. All video lottery
machines
shall
must be
adequately monitored during business hours. Adequate monitoring
shall
must be
accomplished by the personal presence of an employee or by an
employee using video cameras or mirrors and periodic inspections of
the bar or lounge. No new license may be issued to any establishment
after July 1, 1992, unless such establishment complies with this
section. No license may be renewed to any establishment after July 1,
1993, unless such establishment complies with this section.
Section 3. That 42-7A-44 be AMENDED:
42-7A-44.
The placement of
video lottery machines in licensed establishments
shall be
is subject to
the rules of the commission promulgated pursuant to chapter 1-26
and are subject to any ordinance or regulation enacted by a
municipality or county pursuant to section 3 of this Act.
No more than ten video lottery machines may be placed in any licensed
establishment. The bar or lounge with an on-sale license issued
pursuant to subdivision 35-4-2(12)
or (16)
shall be
are restricted
to persons twenty-one years of age or older. The entrance to the area
where video lottery machines are located
shall
must display a
sign that the premises are restricted to persons twenty-one years or
older. Notwithstanding the restrictions in 35-4-79,
persons under the age of twenty-one may only enter the premises where
video lottery machines are located provided they are accompanied by a
parent, guardian, or spouse of twenty-one years or older.
Section 4. That a NEW SECTION be added to chapter 42-7A:
A municipality or county may enact any ordinance or regulation disallowing video lottery machines within its jurisdictional boundaries. A municipality or county may enact any ordinance or regulation, that is more restrictive of video lottery than the provisions of this chapter, to regulate the quantity or location of video lottery machines within the jurisdictional boundaries of the municipality or county.