South Dakota Charitable Gaming

Qualified charitable organizations are allowed to run bingo and lotteries, provided the proceeds do not benefit any individual person at the organization. The maximum value of a bingo prize is $2,000.

A qualified charitable organization is defined as a congressionally chartered veterans organization; a religious, benevolent, educational or fraternal organization; a local civic or service club; a political party; a volunteer fire department; or a political committee on behalf of any candidate for a political office that exists under the state laws.

Charitable organizations are not required to be licensed to operate a bingo or lottery. But they must provide the local municipality where the event is to be conducted a written notice 30 days before an event stating the time and location of the bingo game or lottery, provided that the municipality does not prohibit bingo or lottery games. Additionally, if the organization plans to conduct a lottery where tickets will be sold statewide, the organization must provide a written notice to the Secretary of State Department, as well.

In January 2006, SB191 was introduced, attempting to authorize qualified charitable groups such as veterans, fraternal, civic and religious organizations to conduct card game tournaments. The bill was passed by the Senate committee, but did not make it out of the legislature.

In March 2010, South Dakota adopted a law that permits qualified local industrial development corporations to conduct bingo games and lotteries. To be a qualified organization, an enterprise must be incorporated under state law, formed for the purpose of furthering the economic development of a community, and have the authority to promote and assist in the growth and development of small-business concerns in the area. The corporation must also be a nonprofit enterprise and have at least 25 members.