The bill amends South Dakota law to permit the operation of pari-mutuel historical horse racing machines in Deadwood, complementing existing gaming options like card games, slot machines, and sports wagering. It introduces "pari-mutuel historical horse race wagering" as an authorized gaming activity and establishes a nine percent tax on net winnings from this wagering, while maintaining an eight percent tax on other gaming activities. The South Dakota Commission on Gaming will oversee the licensing and regulation of these machines, limiting the number per retail license to four and requiring approval of gaming rules from the commission.

Furthermore, the bill modifies the distribution of funds from the Gaming Commission fund, ensuring that net municipal proceeds to Deadwood reach a threshold of six million eight hundred thousand dollars annually before reallocating remaining funds. After this threshold, seventy percent will go to the state general fund, with the rest distributed among municipalities and school districts in Lawrence County, and the City of Deadwood for historic preservation. Additionally, a new section outlines the allocation of collected moneys, designating forty-five percent to a special racing revolving fund, five percent to the South Dakota-bred racing fund, and the remainder following existing distribution guidelines. These changes aim to enhance the structure and fairness of gaming proceeds distribution while supporting local historical initiatives.

Statutes affected:
Introduced, 01/30/2025: 42-7B-1, 42-7B-4, 42-7B-7, 42-7B-15, 42-7B-16, 42-7B-18, 42-7B-28, 42-7B-28.1, 42-7B-48, 42-7B-48.1