Source: http://www.gambling-law-us.com/Charitable-Gaming/South-Dakota/
Timestamp: 2016-12-03 09:37:05
Document Index: 682224569

Matched Legal Cases: ['§ 25', '§ 22', '§ 22', '§ 22', '§ 9', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22', '§ 22']

South Dakota Bingo and Raffles by Chuck Humphrey
South Dakota Constitution § 25. Games of chance prohibited--Exceptions The Legislature shall not authorize any game of chance, lottery, or gift enterprise, under any pretense, or for any purpose whatever provided, however, it shall be lawful for the Legislature to authorize by law, bona fide veterans, charitable, educational, religious or fraternal organizations, civic and service clubs, volunteer fire departments, or such other public spirited organizations as it may recognize, to conduct games of chance when the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, religious, or other public spirited uses. However, it shall be lawful for the Legislature to authorize by law a state lottery or video games of chance, or both, which are regulated by the state of South Dakota, either separately by the state or jointly with one or more states, and which are owned and operated by the state of South Dakota, either separately by the state or jointly with one or more states or persons, provided any such video games of chance shall not directly dispense coins or tokens. However, the Legislature shall not expand the statutory authority existing as of June 1, 1994, regarding any private ownership of state lottery games or video games of chance, or both. The Legislature shall establish the portion of proceeds due the state from such lottery or video games of chance, or both, and the purposes for which those proceeds are to be used. SDCL 42-7A, and its amendments, regulations, and related laws, and all acts and contracts relying for authority upon such laws and regulations, beginning July 1, 1987, to the effective date of this amendment, are ratified and approved. Further, it shall be lawful for the Legislature to authorize by law, limited card games and slot machines within the city limits of Deadwood, provided that 60% of the voters of the City of Deadwood approve legislatively authorized card games and slot machines at an election called for such purpose. The entire net Municipal proceeds of such card games and slot machines shall be devoted to the Historic Restoration and Preservation of Deadwood.
South Dakota Codified Laws 22-25-23. Bingo defined As used in this chapter, the term, bingo, is that game in which each player is supplied a card, board, or electronic bingo device containing five adjoining horizontal and vertical rows with five spaces in each row each containing a number or figure therein, except for the central row with four spaces, each containing a number or figure therein and the word, free, marked in the center space thereof. Upon announcement by the person conducting the game of any number or figure appearing on the player's card, board, or electronic bingo device, the space containing the figure or number is covered by the player. If the player covers all five spaces in any horizontal or vertical row, covers four spaces and the free space in a five space diagonal row, or covers the required combination of spaces in some other preannounced pattern or arrangement, the combination of spaces covered constitutes bingo. The player to first announce bingo is awarded money, merchandise, or some other consideration by the person conducting the game. For purposes of this section, an electronic bingo device does not include any device which may be activated for play by a player inserting coins, tokens, tickets, vouchers, or similar objects of value or which is capable of dispensing coins, tokens, vouchers, tickets, or any similar object of value.
22-25-24. Lottery defined As used in this chapter, lottery or lotteries means a plan whereby for a valuable consideration money is raised by selling chances to share in the distribution of prizes.
22-25-25. Bingo and lotteries permitted for restricted purposes--Conditions The game, bingo, as defined in § 22-25-23 or lottery as defined in § 22- 25-24 may not be construed as gambling or as a lottery within the meaning of § 22-25-1, if:
(1) The bingo game or lottery is conducted by a bona fide congressionally chartered veterans' organization; a religious, charitable, educational, or fraternal organization; a local civic or service club; a political party; a volunteer fire department; or a political action committee or political committee on behalf of any candidate for a political office which exists under the laws of the State of South Dakota;
(6) The organizations authorized under subdivision (1) of this section, before conducting a bingo game or before selling any chances for a lottery give thirty days' written notice of the time and place thereof to the governing body of the county or municipality in which it intends to conduct the bingo game or lottery, and the governing body does not pass a resolution objecting thereto. However, any organization that conducts a lottery and tickets or shares for such lottery are sold state-wide shall provide written notice of such lottery pursuant to this subdivision only to the secretary of state and to the governing body where the drawing for such lottery is held. A municipality pursuant to § 9-29-5 may by ordinance prohibit within the municipality the sale of lottery tickets or shares for such lottery issued pursuant to this section; and
22-25-25.1. Congressionally chartered veterans' organization defined Any veterans' organization which has applied for a congressional charter prior to July 1, 1989, shall be deemed a congressionally chartered veterans' organization pursuant to § 22-25-25 until such application is denied or until July 1, 1995, whichever occurs first.
22-25-26. Unauthorized bingo or lottery as misdemeanor Any person who conducts bingo or lottery in violation of § 22-25-25 is guilty of a Class 2 misdemeanor.
22-25-27. Provision of chapter not applicable to state lottery The provisions of this chapter do not apply to a lottery owned and operated by this state.
22-25-28. Distributor license required for sale of bingo and lottery equipment and supplies--Purchase or lease permitted from licensed distributors only--Annual license fee--Renewal of license--Distributor defined--Exemption for rental of noncommercial use No person may sell, offer for sale, or otherwise furnish bingo or lottery equipment and supplies without being licensed as a distributor pursuant to §§ 22-25-28 to 22-25-51, inclusive. Any person, organization, or other entity which conducts bingo games or lotteries may purchase or lease bingo or lottery equipment and supplies or pull-tabs only from persons licensed pursuant to this chapter. The annual distributor license fee is five thousand dollars. All distributor licenses shall be renewed on January first of each year. For the purpose of this section, a distributor is any person who purchases bingo or lottery equipment or supplies from a manufacturer and sells, offers for sale, or otherwise furnishes bingo or lottery equipment or supplies in this state. Any person who rents bingo equipment to another for noncommercial recreational use is exempt from the licensing requirement imposed in this section and the tax imposed in § 22-25-48. For the purposes of this section, the term, noncommercial recreational use, means games played for amusement only, not for gain or profit, and not conducted by any person or organization which receives compensation for sponsoring or operating bingo games.
22-25-29. Manufacturer license required of manufacturers selling bingo and lottery equipment and supplies--Annual license fee--Renewal of license--Sales from manufacturers to distributors--Manufacturer defined No manufacturer may sell, offer for sale, or otherwise furnish bingo or lottery equipment and supplies without being licensed as a manufacturer pursuant to §§ 22-25-28 to 22-25-51, inclusive. The annual manufacturer license fee is two thousand five hundred dollars. All manufacturer licenses shall be renewed on January first of each year. No person licensed as a manufacturer may be licensed as a distributor. A manufacturer may sell bingo and lottery equipment and supplies only to a distributor licensed under §§ 22-25-28 to 22-25-51, inclusive, and a distributor may purchase bingo and lottery equipment and supplies only from a manufacturer licensed under §§ 22-25-28 to 22-25-51, inclusive. For the purpose of this section, a manufacturer is any person who assembles from raw materials or subparts completed pieces of bingo or lottery equipment or supplies.
22-25-30. Application for license--Forms--Verification Application for a distributor's or manufacturer's license shall be made to the Department of Revenue and Regulation. The application shall be on forms provided by the secretary of revenue. Such forms shall include at least the following information:
22-25-31. Distributor personnel form--Verification The distributor personnel form shall include the following information:
(4) All other current occupations along with the employer's name, address, type of business, and the position held within that business;
22-25-32. Certain organizations not to be distributors or manufacturers No organization that conducts bingo or lotteries under the provisions of § 22-25-25 may be a distributor or manufacturer.
22-25-33. Certain persons not to have interest in distributorship or manufacturer No person who is an officer, director, manager, or gambling manager of any organization conducting bingo or lotteries under the provisions of § 22-25- 25 may be an officer, director, shareholder, directly or indirectly, proprietor, or employee of a distributorship or manufacturer, nor may the person have any direct or indirect financial interest in such distributorship or in such manufacturer.
22-25-34. Additional persons who may not have interest in distributorship or manufacturer No person who is an officer, director, shareholder, directly or indirectly, partner, or proprietor of a wholesale alcoholic beverage distributorship may be an officer, director, shareholder, partner, proprietor, or employee of a distributorship or manufacturer, nor may the person have any direct or indirect financial interest in the distributorship or in such manufacturer.
22-25-35. Distributors, manufacturers, and persons with interest therein not to lease premises to organizations conducting bingo or lotteries No distributor, manufacturer, or person having a direct or indirect financial interest in a distributorship or in such manufacturer may be a lessor of premises, directly or indirectly, to an organization conducting bingo or lotteries.
22-25-36. Filing of change in information If any information submitted in the application changes, the changes shall be filed with the secretary of revenue within ten days after the change.
22-25-37. Maintenance of records and sales invoices--Form and contents Each distributor and manufacturer shall maintain for five years records relative to the purchase and sale, lease, rental, or loan of bingo or lottery equipment and supplies at the distributor's place of business within this state or in the case of a manufacturer at the manufacturer's place of business. Sales invoices shall be maintained by a distributor for all bingo or lottery equipment and supplies distributed, whether by sale, lease, rental, or loan, to all qualified organizations. Sales invoices shall be maintained by manufacturers for all bingo or lottery equipment and supplies distributed, whether by sale, lease, rental, or loan, to all qualified organizations or distributors. Bingo or lottery equipment and supplies provided to all qualifying organizations or distributors at no charge shall be recorded on a sales invoice. The sales invoices shall be on a standard form prescribed by the secretary of revenue and shall have the following information as a minimum:
22-25-38. Examination of books and records The secretary of revenue may examine or cause to be examined the books and records of any distributor or manufacturer to the extent that such books and records relate to any transaction connected to the sale of bingo or lottery equipment and supplies in this state. No distributor or manufacturer may prohibit, interfere with, or otherwise impede such examination, but shall cooperate and assist with the examination and provide such information as may be required.
22-25-39. Sales to out-of-state customers Bingo or lottery equipment and supplies sold by distributors to out-of-state customers for use out of state shall either be shipped to the out-of-state site or the distributor shall verify that the purchaser is from out of state.
22-25-40. Delivery of equipment and supplies sold for in-state use Bingo or lottery equipment and supplies, sold for in-state use shall be delivered to the purchaser's address or his authorized representative.
22-25-41. Sale of coin-operated machines and mechanical pull-tab devices prohibited--Exception No coin-operated machine or mechanical pull-tab dispensing device may be sold or otherwise furnished to any organization in this state by a distributor or manufacturer licensed pursuant to §§ 22-25-28 to 22-25-51, inclusive. However, a licensed distributor or manufacturer may sell or furnish a coin-operated mechanical pull-tab dispensing device if the device is only sold or furnished to and only used by a fraternal or charitable organization or a congressionally chartered veteran's organization that qualifies under § 22- 25-25.1.
22-25-42. Separate statement of rebates and discounts Rebates of purchase prices or discounts allowed by a distributor or manufacturer shall be separately stated on the original purchase invoice or separately invoiced on a credit memo referenced to the original sales invoice.
22-25-43. Limit on gifts, premiums, and prizes from distributors and manufacturers No distributor or manufacturer may directly or indirectly give gifts, trips, prizes, loans of money, excluding credit, premiums, or other gratuities to qualified organizations or distributors, or their employees, other than nominal gifts, premiums, or prizes not to exceed a value of twenty-five dollars per organization or distributor, including employees, in a calendar year.
22-25-44. Use of deal of pull-tabs as sales promotion No distributor or manufacturer may use as a sales promotion any statement, demonstration, or implication that any certain portion of a deal of pull-tabs contains more winners than other portions of the deal or that any deal of pull-tabs may be sold by the organization in a particular manner that would give the organization any advantage in selling more of the pull-tabs before having to pay out winners.
22-25-45. Return of equipment, supplies, and pull-tabs--Recordation of transaction No distributor or manufacturer may sell, issue, or accept returned bingo or lottery equipment and supplies or pull-tabs to or from an organization without first recording the transaction on a sales invoice.
22-25-46. Requirements for deal of pull-tabs No distributor or manufacturer may knowingly possess, display, put out for play, sell, or otherwise furnish to any person or organization any deal of pull-tabs:
22-25-47. Numbering of disposable bingo cards Each set of disposable bingo cards shall be consecutively numbered from the first card to the last card, or from the first sheet of cards to the last sheet of cards, or be consecutively numbered through the set. Each card or sheet shall have printed on its face both its individual card or sheet number, and the series number assigned by the manufacturer to the set of disposable bingo cards.
22-25-48. Tax imposed on distributors--Payment All distributors shall pay a tax to the Department of Revenue and Regulation of five percent of the distributor's gross sales of bingo or lottery equipment and supplies or pull-tabs for use in South Dakota. The tax shall be paid by the fifteenth day of the month following the month in which the sales invoice was prepared on a form provided by the Department of Revenue and Regulation.
22-25-49. Promulgation of rules The secretary of revenue may promulgate rules pursuant to chapter 1-26 to implement the provisions of §§ 22-25-28 to 22-25-51, inclusive.
22-25-50. Violation as misdemeanor--Second or subsequent violation as felony Any person who violates any provision of §§ 22-25-28 to 22-25-51, inclusive, is guilty of a Class 1 misdemeanor. Any person convicted of a second or subsequent violation of the provisions of §§ 22-25-28 to 22-25- 51, inclusive, is guilty of a Class 6 felony.
22-25-51. Inapplicability of §§ 22-25-28 to 22-25-51, inclusive, to state lottery The provisions of §§ 22-25-28 to 22-25-51, inclusive, do not apply to a lottery owned and operated by the State of South Dakota. Chuck Humphrey is available to help answer questions and analyze and structure transactions.