The bill amends South Dakota's gaming laws to permit the operation of pari-mutuel historical horse racing machines in Deadwood, expanding the definition of authorized gaming activities to include this form of wagering. It establishes regulations for these machines, limiting the number operated per retail license to four, and requires licensed establishments to obtain approval for their gaming rules from the South Dakota Commission on Gaming, which must be clearly posted in gaming areas. Additionally, a new tax structure is introduced, imposing a nine percent tax on net winnings from pari-mutuel historical horse racing, while maintaining an eight percent tax on adjusted gross proceeds from other gaming activities, along with an additional one percent tax on those proceeds.
The bill also revises the distribution of funds from the Gaming Commission fund, ensuring that disbursements to the City of Deadwood continue until net municipal proceeds reach $6.8 million annually. After this threshold, funds will be allocated with 70% to the state general fund, and the remaining 30% divided among municipalities and school districts in Lawrence County, as well as the City of Deadwood for historic preservation. Furthermore, it introduces a new section detailing the distribution of collected moneys, allocating 45% to a special racing revolving fund, 5% to the South Dakota-bred racing fund, and 50% according to existing provisions, while ensuring funds are also directed towards historical preservation efforts.
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