South Dakota has unique gaming regulations as it only allows gambling in the City of Deadwood. Within the city limits, only slot machines, Blackjack and poker are authorized to accept wagers. This allows regulatory bodies to only need to focus on a single area within the state.
Deadwood has a long history of prostitution and illegal gambling. This extended without any interruption from the law until the middle of the 20th century. Over time the city began to deteriorate so the local Government pushed for gambling to save the city. A statewide petition was put into place. The decision to legalize gambling in the city was put to a vote and received a 60 percent approval for implementation. Gaming commenced in November 1989.
The South Dakota Commission on Gaming regulates all gambling activities. The Commission is comprised of five members who are appointed directly by the Governor. The members serve staggered three year terms and must be affiliated with different political parties to even the negotiating field.
Within the Commission is an Executive Secretary that manages administrative operations. They also manage a staff that governs the gaming laws set forth by the state. No commission member can be a resident of Lawrence County where Deadwood is seated. Also, commission members cannot accept gifts of value from licensees or their operating staff. Furthermore, commission members are not permitted to gamble in Deadwood.
The primary functions of the Commission include:
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- Inspect gaming properties
- Examine gaming equipment for consistency
- Verify licensee’s income
- Revoke a license
- Adopt regulations
- Define gaming contracts
- Set application fees
- Fix the gaming tax
- Carry out other duties required by the state
The Executive Secretary conducts the following tasks:
- Creates gaming tax return forms
- Grant limited extensions on tax forms
- Grant or deny licenses
In addition to the Executive Secretary, the Attorney General oversees these operations as a check and balance. They also have the authority to enforce the Gaming Control Act and other regulations through court mandated actions.
The tax structure of South Dakota gaming seems a little stringent in that the state charges an annual fee of $2,000 for each slot machine and table game. Also, an 8 percent gross revenue tax is paid to the state. South Dakota has unique rules rarely found within other states. With o\only a single gaming outlet in the whole state, the Commission keeps the gaming regulations moving efficiently and effectively with plenty of checks and balances within the system.
