Can I offer contests that involve cash prizes in South Dakota? What are the requirements?

Based on the documents provided, it appears that contests involving cash prizes are allowed in South Dakota, but there are certain requirements that must be met.

Requirements for Offering Contests with Cash Prizes in South Dakota

1. Authorization: The lottery is authorized to offer and operate games with cash prizes ^[1.1].
2. Prize Payment and Validation: Prizes may only be paid on valid tickets that satisfy all the requirements in chapter 48:03:03 and other confidential validation and security checks of the lottery ^[1.2].
3. Funding: Lottery expenses and prizes must be paid from lottery funds, and general funds of the state may not be used or obligated to pay the expenses of the South Dakota Lottery or prizes of the lottery ^[2.1].
4. Claiming Prizes: To claim a cash prize of more than $100, a player must complete the back of the winning ticket and fill out a claim form obtained from any retailer and either mail or hand deliver the completed form, together with the winning ticket, to the lottery for validation ^[3.1].
5. Qualifications of Retailer: To be selected as a lottery retailer, a natural person acting as a sole proprietor must be of good character and reputation, have sufficient financial resources to support the activities required to sell lottery tickets, and be current in payment of all taxes, interest, and penalties owed to the State of South Dakota, excluding items under formal dispute or appeal pursuant to applicable statutes ^[2.2].
6. Ineligible Players: A Dakota Cash ticket may not be purchased by or a prize paid to any member of the commission or an employee of the lottery, an officer or employee of a company or business that currently supplies equipment, supplies, or services being used directly in the operation of the lottery’s on-line games, or an immediate family member of an individual described in the previous two categories who reside in the same household ^[1.3].
7. Licensing: Each video lottery machine manufacturer, distributor, operator, and licensed establishment shall be licensed by the executive director before any video lottery machine or associated equipment is manufactured, distributed, sold, or placed for public use in this state ^[2.4].
8. Gifts and Loans: Persons contracting or seeking to contract with the state to supply materials, tickets, or consulting services for use in the lottery or from a lottery retailer, person licensed, or an applicant for a contract or license under this chapter may not offer, pay, give, or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service having an aggregate value of one hundred dollars or more in any calendar year to a member of the commission or employee of the South Dakota Lottery, or to any person residing in the same household of either of the aforementioned ^[2.5].

Conclusion

Based on the documents provided, it appears that contests involving cash prizes are allowed in South Dakota, but there are certain requirements that must be met. These requirements include authorization, proper funding, qualifications of the retailer, ineligible players, licensing, and restrictions on gifts and loans. It is important to ensure that all requirements are met before offering contests with cash prizes in South Dakota.

Source(s):

• [1.1] Dakota Cash game authorized.
• [1.2] Prize payment and validation.
• [2.1] Lottery expenses and prizes to be paid from lottery funds–General funds not to be used or obligated–Exception.
• [3.1] Procedure for claiming prize of more than $100 – Noncash prizes.
• [2.2] Qualifications of lottery retailer.
• [2.4] Video lottery machine manufacturer, distributor, operator, and establishment licenses required–Fees.
• [1.3] Ineligible players.
• [2.5] Persons contracting to supply materials, tickets or consulting services not to give gifts or loans to commission members or lottery employees–Violation as misdemeanor.

Jurisdiction

South Dakota

• Gaming