# Plain-English Summary: Online and Mobile Parimutuel Wagering Rules South Dakota is creating a new licensing system for companies that offer online and mobile horse and dog race betting through advance deposits. The rules establish standards for how these licensed "hub" operators must manage customer accounts, prevent fraud and money laundering, protect bettors, and report to the state Gaming Commission. Hub operators must now implement security measures including location detection, anti-money laundering compliance, and independent audits of their internal controls every two years, while customers gain protections like self-exclusion options and dispute resolution procedures.
AI-generated from the proposed rule text — verify against the official documents.
Consider the adoption and amendment of proposed rules in ARSD 20:04:33, 20:04:34, and 20:04:35. The aforementioned rules will implement online and mobile application parimutuel wagering through advance deposits with multi-jurisdictional totalizator hubs. The rules establish standards in all respects for the operation of hubs within the context of advance deposit wagering, online, and mobile applications. The rules implement security standards, account standards, and clarify the means and methods for applications to be submitted and examinations to occur of wagering systems. The rules are meant to holistically address the licensure of multi-jurisdictional totalizator hubs within the context of online and mobile application wagering on horse and grey hound racing. The reason for adopting the proposed rules is the South Dakota Legislature passed house bill 1058 which requires licensure for online parimutuel wagering pools for horse and dog races. Such legislation clarified that online betting platforms or electronic applications may offer online parimutuel wagering on horse or dog races if they are licensed as a multi-jurisdictional totalizator hub in the state of South Dakota. Part of this enactment, South Dakota did not have a structure for the operation online or mobile electronic applications within the context of parimutuel wagering on horse or dog races. Entities had operated illegally in this space and the rules are meant to implement and develop standards for the licensure and operation of online parimutuel wagering pools. The rules also clarify the interaction and requirements for totalizator hubs licensed and participating in online and mobile electronic application parimutuel wagering pools.