Deadwood sports-wagering rules roll on, with second public hearing planned for July 14

Capitol News Bureau
KELO Deadwood

PIERRE, S.D. (KELO) — The state Commission on Gaming saw its proposed rules for licensing providers of sports wagering services at Deadwood casinos get the green light Monday.

The Legislature’s Rules Review Committee gave final clearance to the first batch of regulations for sports wagering that South Dakota voters decided last year to allow.

The lawmakers also okayed a variety of other Deadwood rule proposals but rejected a change in how adjusted gross revenue is calculated.

Mike Shaw, the commission’s lawyer, drew attention to it. He conceded the commission likely went beyond its legislative authority.

“I’ve always adhered to the process it’s never too late to do the right thing,” he said.

The issue was whether the commission could exempt federal excise tax from the calculation. Deadwood Gaming Association attorney Roger Tellinghuisen, a former state attorney general, had requested the change.

Tellinghuisen appeared Monday and told the legislators he didn’t disagree with Shaw and the Legislature’s code counsel.

Tellinghuisen said lawmakers might see him again in January requesting that state law on adjusted gross revenue be amended so the commission can go ahead with the change. “I apologize it turned out to be one they didn’t have the authority to make,” he said.

Craig Sparrow, the commission’s deputy executive secretary, said the sports-wagering licensing rules would allow applications to be accepted starting July 1.

The commission still needs to propose other sports-wagering rules. The latest plan calls for a rules hearing on the next batch July 14, but they haven’t been officially offered yet. A date hasn’t hasn’t been publicly announced when sports wagering officially starts.

Sparrow said Monday the $5,000 application fee for a sports-wagering provider license was based on the need to travel outside South Dakota for background investigations. He said the amount is similar to the application fee for slot-machine manufacturers or distributors.

The legislators also gave final clearance Monday to proposed rules from seven other agencies and offices but sent back proposed rules on students receiving medical marijuana in schools.

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