Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I offer contests that involve college sports in South Dakota? What are the requirements?

Here is the response to your query:

Offering Contests Involving College Sports in South Dakota

According to SDAR 20:18:35:18, no sports wagering tournament, contest, or pool may be conducted unless the licensee or sports wagering services provider files written notice with the commission of its intent to offer that tournament, contest, or pool type and obtains approval from the commission. The licensee or sports wagering services provider may file a master list with the commission to satisfy the requirement. The written notice must include a detailed description of the tournament, contest, or pool type and must include the rules of the tournament, contest, or pool; the requirements for entry; the entry fees; the rake; and potential payouts. The request must also indicate whether or not the proposed type involves a shared liquidity pool with the prize pool being comprised of entry fees collected from patrons in multiple jurisdictions.

Therefore, if you want to offer contests involving college sports in South Dakota, you must file a written notice with the commission of your intent to offer that contest type and obtain approval from the commission. The written notice must include a detailed description of the contest type and must include the rules of the contest, the requirements for entry, the entry fees, the rake, and potential payouts.

Requirements for Approval

According to SDAR 20:81:08:01, the Commission may only approve those proposed recognized amateur sanctioning bodies and educational institutions that meet certain requirements. These requirements include having a legal existence, having rules that provide for the exclusion of professionals from its competitions, having rules that provide for the exclusion of contestants under the age of eighteen from its competitions, having rules that provide for the medical safety and care of its contestants, having rules that provide for cooperation with the Commission, and having rules that require the identification of the sanctioning body or educational institution on all advertisements for contests held in South Dakota, at the site of any South Dakota contest, and upon all programs or handbills distributed at any South Dakota contest.

Therefore, to obtain approval for offering contests involving college sports in South Dakota, you must ensure that your contest meets the above requirements.

Taxation Requirements

According to SDAR 20:18:35:22, each licensee or sports wagering services provider shall, at all times, comply with Internal Revenue Service (IRS) requirements for reporting and withholding proceeds from sports bets by patrons and shall send to patrons subject to IRS reporting or withholding a Form W2-G summarizing the information for tax purposes following a winning wager being paid out to the patron. Upon written request, the licensee or sports wagering services provider shall provide patrons with summarized tax information on sports wagering activities.

Therefore, if you offer contests involving college sports in South Dakota, you must comply with the IRS requirements for reporting and withholding proceeds from sports bets by patrons. You must also send a Form W2-G to patrons subject to IRS reporting or withholding following a winning wager being paid out to the patron.

Additional Information

The South Dakota Freedom Scholarship Board was established to provide eligible South Dakota students with a needs-based scholarship to attend an eligible postsecondary institution [2.1][2.2]. The scholarship is available to South Dakota residents who attend an eligible institution in pursuit of a baccalaureate degree and establish financial need [2.2].

The sports wagering system must be capable of recording, for each sports wagering voucher, the value of the voucher, the date, time, and location of issuance, a unique validation number, the expiration date of the voucher, and the date, time, and location of redemption, if applicable [3.1].

All applications for offering contests in South Dakota must be submitted to the South Dakota Lottery at its office in Pierre [5.1].

Therefore, to offer contests involving college sports in South Dakota, you must ensure that your contest meets the requirements for approval, comply with the IRS requirements for reporting and withholding proceeds from sports bets by patrons, and submit your application to the South Dakota Lottery.

Source(s):
Jurisdiction

South Dakota