South Dakota Video Lottery Operator Bond Overview
- Purpose: To guarantee video lottery operators follow state law
- Who Needs It: Anyone who operates and maintains video lottery machines in South Dakota
- Regulating Body: The South Dakota Lottery
- Bond Amount: $1,000–$100,000, based on estimated share of annual net income
- Minimum Price: $100, or 1% of the bond amount
What Is a South Dakota Video Lottery Operator Bond?
A South Dakota video lottery operator bond ensures operators comply with state law and remit all funds owed. If you place and manage video lottery machines in South Dakota, you need to be licensed and bonded with the SD Lottery.
Bond Coverage Requirements for Video Lottery Operators
If you’re a new operator, contact the South Dakota Lottery to determine your required security amount. For existing operators, the Lottery will calculate your updated coverage at renewal based on your estimated share of annual net machine income.
How Much Do Video Lottery Operator Bonds Cost in South Dakota?
South Dakota video lottery operator bonds start at $100 for the minimum $1,000 coverage. Qualified applicants typically pay just 1–3% of the total bond amount.
Your exact price will depend on your credit score. Apply now for a free, personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Surety Bond Work?
A South Dakota video lottery operator bond creates a legal contract between three parties: the principal, obligee and surety provider.
| Bond Party | Description |
|---|---|
| Principal | The video lottery operator purchasing the bond |
| Obligee | The South Dakota Lottery requiring the bond |
| Surety | The issuing surety provider |
By filing this bond, you promise to comply with South Dakota Administrative Rule 48:02:05:04. This law prohibits the following acts:
- Failing to properly maintain video lottery machines
- Withholding payment for valid credits or winnings
- Using unqualified technicians or service agents
- Engaging in dishonest advertising practices
If you break these terms, harmed parties can file bond claims to recover losses. Your surety provider will pay valid claims up to the full bond amount. However, you’ll need to refund the surety.
How Do I Get a Video Lottery Operator Bond in South Dakota?
You can start the bonding process online 24/7 using the form on this page. Simply enter your information, and we’ll run a quick credit check to determine your exact price. You’ll receive a free quote within one business day.
How Fast Can I Get My Bond?
Need your bond as soon as possible? Select from three-day, two-day or overnight shipping at checkout. Shipping rates are $20–$40, respectively.
Can I Get Bonded With Bad Credit?
Yes, you can still get bonded with bad credit. However, poor credit will likely increase your price. Apply for a free quote today to see how credit impacts your cost.
How Do I Renew My Bond?
South Dakota video lottery operator bonds expire annually. We’ll send you reminders starting 90 days before renewal. Simply pay the attached invoice to extend your bond for another year.
Can I Make Changes to My Bond?
If your bond form needs to be updated, just email [email protected] with the change request. While typically you cannot change an active bond, some obligees will accept an amendment document for minor changes.
How to Become a Video Lottery Operator in South Dakota
If you want to purchase and place lottery machines in South Dakota businesses, you’ll need a video lottery operator license. Follow these steps to apply.
First, register your business with the state. You must be a resident of South Dakota to apply for an operator license. Then, gather the following documents:
- Application Form
- Individual History Form*
- Investigation Authorization*
- Additional Operator Information Form
- Authorization for Electronic Funds Transfer (EFT) Form
- Surety Bond Form
*Must be completed by every partner, director, officer and anyone in a similar role.
Submit these materials and payment through the online licensing portal. You’ll also need to contact the South Dakota Lottery Security Division for a fingerprint card and background check instructions.
What Training Do I Need to Service the Machines?
Under SD Administrative Rules Chapter 48:02:10, a licensed manufacturer or distributor must provide maintenance training to anyone planning to service video lottery machines.
You must be qualified by the state as one of two types of technicians:
- Type I: Routine maintenance, such as installing printing paper and fixing bill/coin jams
- Type II: Advanced diagnostics and repair, such as replacing parts and configuring software
After the training seminar, you’ll need to pass an exam. The manufacturer will administer the exam for Type I technicians, while the SD Lottery directly administers the exam for Type II technicians.
Do Employees Need to Be Licensed?
No, all of your employees will automatically be certified as Service Agents once you’re licensed as an operator. This allows them to perform maintenance on video lottery machines. However, your employees will need to submit copies of their training certificates and details about the type of training they received.
