ENTITLED An Act to authorize, regulate, and tax wagering on sporting events within the city limits of Deadwood and provide a penalty for a violation thereof.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 42-7B-1 be AMENDED.
42-7B-1. Limited gaming authorized within city of Deadwood.
Limited card games, slot machines, craps, roulette, keno, and wagering on sporting events are hereby authorized, and may be operated, conducted, and maintained, within the city limits of the city of Deadwood, South Dakota, subject to the provisions of this chapter.
Section 2. That 42-7B-4 be AMENDED.
42-7B-4. Definition of terms.
Terms used in this chapter mean:
(1) "Adjusted gross proceeds," except in the case of the games of poker, gross proceeds less cash prizes. In games of poker, the term means any sum wagered in a poker hand that may be retained by the licensee as compensation which must be consistent with the minimum and maximum amount established by the commission;
(2) "Advance deposit sports wagering," a method of wagering on sporting events in which an eligible individual may, in an account established with a licensed operator or route operator, deposit money into an account and use the balance to pay for bets placed on the premises of a licensed gaming establishment as approved by the commission in the city of Deadwood;
(3) "Associated equipment," any equipment or any mechanical, electromechanical, or electronic device, component, or machine, or any combination thereof, that is used remotely or directly in connection with gaming or any gaming device;
(4) "Associated equipment manufacturer or distributor," any person who designs, assembles, fabricates, produces, constructs, sells, leases, distributes, or otherwise prepares a product or component of any associated equipment;
(5) "Bet," an amount placed as a wager in a game of chance or on the results of a sporting event or a contingency during a sporting event or the performance or nonperformance of an athlete or competitor during a sporting event;
(6) "Blackjack," a card game played by a maximum of seven players in which each player bets against the dealer. The object is to draw cards whose value will equal or approach twenty-one without exceeding that amount and win bets, payable by the dealer, if the player holds cards more valuable than the dealer's cards;
(7) "Cheating," any attempt to alter the elements of chance, method of selection, or criteria that determines the:
(a) Result of a game;
(b) Amount or frequency of payment in a game;
(c) Value of a wagering instrument;
(d) Value of a wagering credit;
(e) Result of a sporting event or an event within a sporting event; or
(f) Performance or nonperformance of an athlete or competitor during a sporting event;
(8) "Cheating device," any computerized, electronic, electrical, or mechanical device, or any software or hardware, or any combination thereof, that is designed, constructed, altered, or programmed to obtain an advantage at playing any game or placing any bet that is offered by a licensee, including a device that:
(a) Projects the outcome of the game or bet;
(b) Keeps track of cards played or cards prepared for play in the game;
(c) Tracks play and analyzes the probability of the occurrence of an event relating to the game or bet; or
(d) Tracks play and analyzes the strategy for playing or betting to be used in the game except as may be made available as part of an approved game or otherwise permitted by the commission;
(9) "City limits," the boundaries of the city of Deadwood as they existed on January 1, 1989;
(10) "Collegiate sporting event," an athletic competition or event between two or more colleges or universities;
(11) "Commission," the South Dakota Commission on Gaming;
(12) "Craps," a game in which the players place bets on the outcome of the roll or series of rolls of a pair of dice;
(13) "Fraudulent scheme," a dishonest or deceptive plan or arrangement used or intended to be used to play a game or slot machine or place a bet, that gives any person an advantage when playing a game or slot machine, or placing a bet;
(14) "Fraudulent technique," a dishonest or deceptive procedure or method of playing a game or slot machine, or placing a bet that gives any person an advantage when playing a game or slot machine, or placing a bet;
(15) "Gaming," limited card games, slot machines, craps, roulette, keno, and wagering on sporting events, as allowed and regulated by this chapter;
(16) "Gaming device," a poker table, a blackjack table, a slot machine, a craps table, a roulette table, or a keno number selection device;
(17) "Gaming employee," any person twenty-one years of age or older employed by an operator, retailer hosting gaming, or sports wagering services provider, who works directly with the gaming portion of that business and who must hold a support license;
(18) "Gaming equipment," any equipment used in gaming that is allowed by this chapter and which requires licensing;
(19) "Gaming license," any license issued by the commission pursuant to this chapter which authorizes any person to engage in gaming within the city of Deadwood;
(20) "Gaming property owner," any person other than a licensed retailer who owns real property where licensed gaming is conducted within the city of Deadwood. The term, gaming property owner, does not include any person who owned real property where licensed gaming was conducted within the city of Deadwood prior to January 1, 2010;
(21) "Historic restoration and preservation," the restoration and preservation of the city of Deadwood to maintain its historical background, cultural heritage, and necessary supporting infrastructures;
(22) "International sporting event," an international team or individual sporting event governed by an international sports federation or sport's governing body, including sporting events governed by the International Olympic Committee and the International Federation of Association Football;
(23) "Keno," a game in which players place bets by marking their selections on a blank ticket form with eighty numbered selection boxes and the outcome is determined by a number selection device;
(24) "Key employee," any executive, employee, or agent of a gaming licensee having the power to exercise a significant influence over a decision concerning any part of the operation of a gaming licensee;
(25) "Licensed gaming establishment," any premises licensed pursuant to this chapter where gaming is conducted;
(26) "Licensee," any person licensed under this chapter;
(27) "Licensing authority," the South Dakota Commission on Gaming;
(28) "Limited card games," any card games, including poker, blackjack, and variations of poker and blackjack, that are authorized by this chapter and regulated by the commission;
(29) "Minor league sporting event," a sporting event conducted by a sports league that has not been classified by the commission as a premier league in the sport;
(30) "Net municipal proceeds," the amount remitted to the city of Deadwood by the South Dakota Commission on Gaming;
(31) "Operator," any person who places poker tables, blackjack tables, slot machines, craps tables, roulette tables, keno number selection devices, or accepts or redeems bets, in the person's own business premises;
(32) "Poker," a card game played by players who are dealt cards by a nonplayer dealer. The object of the game is for each player to bet the superiority of the player's own hand and win the other players' bets by either making a bet no other player is willing to match or proving to hold the most valuable cards after all the betting is over. Poker includes draw, stud, low ball, or any combination thereof;
(33) "Professional sporting event," a sporting event, other than a minor league sporting event, in which two or more persons participate and receive remuneration in excess of their out-of-pocket expenses for participating in the event;
(34) "Retailer," any licensee who maintains gaming at the licensee's place of business within the city of Deadwood for use and operation by the public;
(35) "Retail space," the area where the retailer's business is principally conducted;
(36) "Roulette," a game in which players place bets on a single number or a range of numbers or the colors red or black or whether the number is odd or even or a combination thereof and the winning numbers and color are determined by a ball which is spun on a wheel;
(37) "Route operator," any person who, individually or jointly pursuant to an agreement whereby consideration is paid to accept or redeem bets or for the right to place poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device, engages in the business of accepting or redeeming bets or placing and operating poker tables, blackjack tables, slot machines, craps tables, roulette tables, or a keno number selection device within the city of Deadwood;
(38) "Slot machines," any mechanical, electrical, or other device, contrivance, or machine which, upon insertion of a coin, token or similar object, or upon payment of any consideration whatsoever, is available to play or operate, the play or operation of which, whether by reason of the skill of the operator or application of the element of chance, or both, may deliver or entitle the person playing or operating the machine to receive cash premiums, merchandise, tokens, redeemable game credits or anything of value other than unredeemable free games whether the payoff is made automatically from the machines or in any other manner;
(39) "Slot machine manufacturer or distributor," any person who designs, assembles, fabricates, produces, constructs, sells, leases, distributes, or otherwise prepares a product or a component part of a slot machine, other than tables or cabinetry;
(40) "Sporting event," a contest or competition between individuals or teams the results of which are determined at least in part by the skill or ability of an individual athlete or competitor or a team which is competing in the event;
(41) "Sporting event official," any official as recognized by the respective sport s governing body;
(42) "Sports wagering area," the designated location in a gaming establishment approved by the commission, in which sports wagering may be conducted;
(43) "Sports wagering services provider," a person who maintains or operates the software or hardware of a sports wagering system or facilitates wagering on a sporting event by providing a service, including data aggregation, risk management, computer service, furnishing information, and setting of odds;
(44) "Suitability" or "suitable," in relation to a person is the ability to be licensed by the commission and as to acts or practices, are lawful acts or practices;
(45) "Unsuitability" or "unsuitable," in relation to a person is the inability to be licensed by the commission because of prior acts, associations, or financial condition, and as to acts or practices, are those that would violate the statutes or rules or would be contrary to the declared legislative purpose of this chapter;
(46) "Wagering on sporting events" or "sports wagering," the acceptance of a wager on an authorized sporting event by any system of wagering authorized by the commission.
Section 3. That 42-7B-5 be AMENDED.
42-7B-5. Disposition of proceeds.
The entire net municipal proceeds of gaming shall be devoted to the historic restoration and preservation of the city of Deadwood as provided in this chapter. The term, historic restoration and preservation, shall be interpreted liberally in scope and effect.
Section 4. That 42-7B-7 be AMENDED.
42-7B-7. Promulgation of rules--Enforcement of chapter.
The commission may promulgate rules, pursuant to chapter 1-26, for the orderly transaction and conduct of its business and the substantive rules that it may determine proper concerning:
(1) The issuance, revocation, and suspension of gaming licensees;
(2) The division of limited card games, slot machines, craps, roulette, keno, or devices used to accept or redeem bets, that may be placed in any building or retail business;
(3) The conduct and operation of gaming;
(4) Variations of limited card games, craps, or roulette; and
(5) Any other things necessary to carry out the purposes of this chapter.
The commission may also promulgate rules necessary to administer complaints received from the public and conduct such other investigations and inspections into the conduct of the games and the licensees and the maintenance of the equipment as the commission deems necessary and proper. License issuance, suspension, and revocation are contested cases within the meaning of chapter 1-26. The commission's rules may provide procedures for summary suspension of any license issued under this chapter and shall provide for subsequent contested case hearings before suspensions become final or a license is revoked. The commission may apply for injunctive or declaratory relief to enforce the provisions of this chapter and any rules promulgated thereunder. Action by the commission may not limit the authority of the state's attorney or attorney general from enforcing criminal actions.
Section 5. That 42-7B-15 be AMENDED.
42-7B-15. Approval of rules for certain games.
A licensed gaming establishment shall obtain approval of its rules for blackjack, poker, craps, roulette, keno, and sports wagering from the commission and clearly post the approved rules within plain view of any applicable gaming table or area in which the gaming is offered for play.
Section 6. That 42-7B-22 be AMENDED.
42-7B-22. Licenses--Fees--Renewal--Violation as felony.
The commission may issue the following types of licenses that are required to conduct gaming under this chapter:
(1) Slot machine manufacturer or distributor license. The license fee is one thousand dollars and thereafter an annual fee renewable July first of each year in the sum of two hundred fifty dollars. A slot machine manufacturer or distributor may not be licensed as a route operator, operator, or retailer;
(2) Operator license. The license fee is one thousand dollars and thereafter an annual fee renewable July first of each year of two hundred dollars;
(3) Retail license. The license fee is two hundred fifty dollars and the