S.D. Admin. R. 48:02:08:03

Current through Register Vol. 50, page 159, June 17, 2024

Section 48:02:08:03 - Software requirements for percentage payout

Each video lottery machine must meet the following maximum and minimum theoretical percentage payout during the expected lifetime of the machine:

(1) Video games that are not affected by player skill shall pay out a minimum of 80 percent and no more than 95 percent of the amount wagered. The theoretical payout percentage will be determined using standard methods of probability theory. For the video game of keno, the theoretical payout percentage requirements apply to each number of spots marked;

(2) Video games that are affected by player skill, such as video draw poker and blackjack, shall pay out a minimum of 83 percent and no more than 96 percent of the amount wagered. This standard is met when using a method of play that will provide the greatest return to the player over a period of continuous play;

(3) Manufacturers must file a request and receive approval by the commission prior to manufacturing machines for placement in the state programmed for a payout greater than 92 percent of the amount wagered. Approval must be granted prior to applying for machine testing under § 48:02:08:02 or 48:02:08:05. The commission shall consider, but not be limited to the following factors in determining approval;

(a) The number of machines proposed for placement;

(b) Market conditions;

(c) Revenues in relation to net machine income for both the state and private sector operations; and

(4) Each machine must have a probability of obtaining the maximum payout greater than 1 in 17,000,000 for each play.

S.D. Admin. R. 48:02:08:03

16 SDR 27, effective 8/18/1989.

General Authority: SDCL 42-7A-21(10).

Law Implemented: SDCL 42-7A-21, 42-7A-37, 42-7A-38.