The bill amends South Dakota's existing law regarding the licensure of video lottery operators, specifically addressing the eligibility criteria for applicants. It stipulates that individuals or entities seeking licensure as video lottery machine manufacturers, distributors, operators, or lottery retailers must undergo a background investigation. This requirement extends to all partners, members, managers, directors, officers, and any stockholders holding five percent or more of the entity, including those from parent or subsidiary corporations. Additionally, it emphasizes that video lottery machine operators must be residents of South Dakota, and the majority ownership must be held by state residents or a public company that was previously licensed as a video lottery operator before January 1, 1997.

Furthermore, the bill clarifies that applicants bear the responsibility of demonstrating their qualifications to the satisfaction of the commission and executive director. It also grants the commission the authority to adopt rules to establish further requirements aimed at preserving the integrity and security of the lottery. Overall, the amendments aim to enhance the regulatory framework governing video lottery operations in South Dakota.

Statutes affected:
Introduced, 01/08/2025: 42-7A-43
Enrolled, 02/18/2025: 42-7A-43