S.D. Admin. R. 48:02:05:04 - Duties of licensed operators

Specific duties of licensed operators are as follows:

(1) Promote the placement of machines in licensed establishments and assume primary responsibility for operation and maintenance of video lottery machines;

(2) Maintain and provide in accordance with chapter 48:02:10, either directly or through a service agent, an inventory of associated equipment to ensure the timely repair and continued, approved operation and play of the video lottery machines it operates;

(3) Maintain in accordance with chapter 48:02:10 all skills necessary for the timely repair and service of machines and associated equipment to ensure the continued, approved operation of the machines it operates and require its employees and service agents to maintain such skills;

(4) Attend all meetings, seminars, and training sessions for the repair and maintenance of machines and associated equipment required by the lottery and this article;

(5) Supervise its employees and the activities of licensed establishments to ensure compliance with the requirements of this article;

(6) Assume responsibility for the payment to players of credits awarded under arrangements with licensed establishments where the machines are located;

(7) Assume responsibility for machine and associated equipment malfunctions, including any claim for the payment of credits arising from malfunctions. An operator's liability is limited to the number of credits for the game displayed in the game rules and may not be greater than $1,000 for any succession of games played;

(8) Notify the lottery of any recurring electronic or mechanical machine malfunctions or other problems experienced in a particular approved machine model;

(9) Enter into service contracts for the maintenance and repair of video lottery machines and associated equipment with qualified service agents under terms and conditions agreed upon by both parties;

(10) Comply with all Type I technician requirements in § 48:02:10:02.01;

(11) Comply with all Type II technician requirements in § 48:02:10:02.02;

(12) Place video lottery machines in establishments and in numbers to ensure maximum revenues to the state;

(13) Assume all responsibility for establishing communication between each video lottery machine and the host system;

(14) Maintain general liability insurance coverage for each machine;

(15) Conduct advertising and promotional activities of the video lottery in accordance with decency, dignity, honesty, and good taste that does not reflect adversely on the lottery or the state of South Dakota;

(16) Contract only with persons authorized under this title to directly share in revenues generated from net machine income. Any contracts entered into for the division of revenues from net machine income must clearly state that the lottery is not a party to the agreement;

(17) Assume liability for lost or stolen money from machine play. Operators may provide for the sharing of any loss with the establishment where the machine is located;

(18) Furnish security to the lottery by July 1 of each year equal to one-eighteenth of the state's share of estimated annual net machine income derived from the operator's video lottery machines either by purchase of a surety bond, deposit in cash, or receipt of an irrevocable letter of credit or a certificate of deposit issued by a South Dakota financial institution with the lottery endorsed on it as a payee;

(19) Respond to service calls within 24 hours from the time of notification by the establishment; and

(20) Remove all machines from the establishment machine play area that have been out of service for more than 48 hours from the time notice was received by the lottery.

Notes

S.D. Admin. R. 48:02:05:04

16 SDR 27, effective 8/18/1989; 21 SDR 219, effective 6/26/1995; 37 SDR 215, effective 5/31/2011; 49 SDR 051, effective 11/27/2022

General Authority: SDCL 42-7A-21(17), 42-7A-43.

Law Implemented: SDCL 42-7A-21(17), 42-7A-43.