South Dakota video lottery businesses ask regulator to increase bet limits, jackpot payouts

September 22, 2023

The current limits have not been changed since the state welcomed video lottery more than 30 years ago.

Two South Dakota business owners have requested that the state’s Lottery Commission raise both the limit on jackpot machine payouts and the minimum betting amount players can wager on video gaming machines, according to a local report in Kelo News report.

They are asking for “a tiered system of maximum bets ranging from $3 to $5 along with jackpot increases” and “that the lottery office should pay any winnings above $2,500.”

South Dakota first implemented a video lottery in 1989. The current state law on the books permits a maximum betting amount of $2 per play on video lottery machines and a jackpot payout amount no larger than $1,000.

Since the statewide video lottery’s debut, both lobbyists and South Dakota Lottery officials have pushed to see these limits raised, according to the local report.

Lottery Executive Director Norm Lingle shared with local news current statistics on funding coming in from the video lottery. He said that the state’s general fund received close to $163m for the past year’s budget from video lottery.

However, the state released a recent report that reflected a decrease in player activity during the summer. According to the latest figures, video lottery play dropped by 1.66% in July and August when compared to player activity from several months prior.

The state’s budget year concluded on June 30.

The South Dakota video lottery has traditionally brought in a bulk of the state government’s revenue for many years, according to the local report. Revenue generated from the video lottery is second only to funds brought in by the state sales tax.

When it comes to player losses, the state government and businesses split the money.


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