Section · Administrative Rules of South Dakota · View on sdlegislature.gov ↗
The application for a multi-jurisdictional totalizator hub license must be submitted on a form provided by the commission. The application must have the following information attached: (1) If the applicant is a corporation, the names, addresses, and dates of birth of its shareholders, directors, and officers, and if a shareholder is a corporation the date of incorporation, the place of incorporation, and the names, addresses, and dates of birth of its shareholders, directors, and officers; (2) If the applicant is a partnership the names, addresses, and dates of birth of the partners, and if a partner is a corporation, the date of incorporation, the place of incorporation and the names, addresses, and dates of birth of its shareholders; (3) If the applicant is a corporation ultimately owned by a not-for-profit entity without any shareholders, or is a publicly traded corporation, the information required in subdivisions (2) and (3) of this section is required from the directors of the membership organization, or the directors and officers of the publicly traded corporation, in lieu of the shareholders; (4) The names of the racetracks the applicant, or its agent, has contracts with that allow the applicant to provide the simulcast signals and pari-mutuel wagering on the product; (5) A statement of the beginning and ending dates of the applicant's business year; (6) A detailed budget showing anticipated revenue, expenditures, and cash flows by month, from the hub's operation during the license period; (7) The number of days that the applicant is planning to operate the hub during the year in which the applicant is seeking to be licensed; (8) Financial information from the applicant that demonstrates the applicant has the financial resources to install and operate a hub; (9) A detailed operating plan; and (10) A description of internal controls containing the following: (a) Automated and manual risk management procedures; (b) Employee management, including user access controls for all online wagering personnel and segregation of duties; (c) The means for identifying and reporting fraud and suspicious conduct, including identifying unusual wagering activity and reporting the activity to an independent integrity monitoring provider; (d) The methods for ensuring regulatory compliance; (e) Anti-money laundering compliance standards; (f) The means of accepting wagers and issuing payouts, and any additional controls for issuing payouts in excess of ten thousand dollars; (g) The means of accepting multiple wagers from one patron in a twenty-four-hour cycle, including a process to identify patron structuring of wagers to circumvent recording and reporting requirements; (h) All software applications that comprise the online wagering system; (i) The manner of submitting and receiving approval of all types of wagers available to be offered by the system; (j) Accounting for all integrated third-party systems; (k) Issuance and acceptance of promotional funds and free bets for pari-mutuel wagering; (l) The means of identifying and preventing wagering by prohibited persons; (m) The method of preventing past-post wagers from being placed; (n) The manner of paying winning wagers, in the event of a failure of the online wagering system's ability to pay winning wagers; (o) The requirement to file an incident report with the commission for each online waging system failure, documenting the date, time, and reason for the failure along with the date and time the system is restored; and (p) Any other information which may be required by the commission.
Source: 32 SDR 32, effective August 30, 2005; 53 SDR 35, effective September 30, 2026.