Filed as: South Dakota Commission on Gaming amendment of Administrative Rules.
South Dakota is establishing rules to license and regulate online and mobile horse and dog racing betting platforms, known as multi-jurisdictional totalizator hubs. The new rules set standards for how these licensed platforms must operate, including requirements for security systems, customer account management, anti-money laundering compliance, and fraud prevention. Licensed hubs must undergo independent audits every two years, maintain detailed records for three years, comply with federal tax reporting requirements, and provide customers with information about responsible gambling and dispute resolution. The rules also require hubs to prevent underage and prohibited persons from wagering, implement location detection to verify where bettors are located, and establish internal controls to detect suspicious wagering activity.
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.
Representative Muckey moved to deem the rulemaking process complete for the new online/mobile parimutuel wagering hub rules implementing HB 1058; the committee voted unanimously in favor.
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