The bill amends South Dakota law regarding the eligibility criteria for licensure as a video lottery operator. It specifies that any person applying for or holding a license as a video lottery machine manufacturer, distributor, operator, or lottery retailer must undergo a background investigation. The language clarifies that this requirement extends to every partner, member, manager, director, officer, and any stockholder with a five percent or greater stake in the entity, including those in parent or subsidiary corporations.
Additionally, the bill outlines that video lottery machine operators must be residents of South Dakota, and the majority ownership must be held by state residents or by a public company that was licensed prior to January 1, 1997. It also mandates that a copy of any ownership disclosure statement filed with the U.S. Securities and Exchange Commission must be submitted to the lottery commission. The bill emphasizes that applicants bear the responsibility of proving their qualifications to the commission and executive director, and it allows the commission to adopt further rules to ensure the integrity and security of the lottery.
Statutes affected: Introduced, 01/08/2025: 42-7A-43