ARSD 20:18:35:20. Tournament payout, fees, taxes, and rake

Fees collected, less cash prizes paid, are subject to the wagering taxes pursuant to SDCL 42-7B-28, 42-7B-28.1 and 42-7B-28.2. In determining sports wagering net receipts, to the extent that cash prizes paid out exceed fees collected, the licensee or sports wagering service provider shall be deemed to have paid the fees for the participants. The licensee or sports wagering services provider shall be responsible for the rake. The rake may not exceed 10% of fees collected unless otherwise approved by the commission. The licensee’s or sports wagering services provider’s rake collected from patrons that enter a tournament, contest, or pool while located in the state of South Dakota less any rake adjustment, if applicable, is subject to the wagering taxes pursuant to SDCL 42-7B-28, 42-7B-28.1 and 42-7B-28.2 as are paid on sports wagering net receipts, with the following additional requirements: (1) At no time may the calculation resulting from a rake or rake adjustment be negative; and (2) For a tournament, contest, or pool that utilizes shared liquidity available to patrons in South Dakota and other jurisdictions, the rake rate must be the same for all jurisdictions participating.