The bill amends South Dakota law to permit the operation of pari-mutuel historical horse racing machines in Deadwood, expanding the city's existing gaming options, which include limited card games, slot machines, and sports wagering. It introduces "pari-mutuel historical horse race wagering" as an authorized gaming activity and establishes a new tax structure, imposing a nine percent tax on net winnings from this form of wagering, while maintaining an eight percent tax on adjusted gross proceeds from other gaming activities. The South Dakota Commission on Gaming will oversee the licensing and regulation of these machines, capping the number of machines per retail license at four and requiring approval of gaming rules from the commission.

Furthermore, the bill modifies the disbursement of funds from the Gaming Commission fund, particularly for the City of Deadwood. It mandates that disbursements continue until the city receives a total of six million eight hundred thousand dollars annually, after which remaining funds will be allocated with seventy percent to the state general fund, and the rest distributed among municipalities and school districts in Lawrence County, as well as the City of Deadwood for historic preservation. Additionally, a new section outlines the distribution of collected moneys, allocating forty-five percent to the special racing revolving fund, five percent to the South Dakota-bred racing fund, and the remainder following existing distribution guidelines.

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