A licensee who engages in promotions to increase business and gaming at the licensee's business may not deduct payouts made pursuant to the promotion from adjusted gross income except for money, prizes, or tokens paid at face value directly to a patron as the result of a specific wager. A specific wager requires two or more persons to stake something of value on an event, the outcome of which is uncertain. If only one party risks something of value, there is no wager.

Source: 16 SDR 233, effective July 1, 1990; transferred from § 20:18:22:20, 21 SDR 98, effective November 30, 1994; 23 SDR 126, effective February 13, 1997; 25 SDR 172, effective July 11, 1999.

General Authority: SDCL 42-7B-7 , 42-7B-11(11).

Law Implemented: SDCL 42-7B-4(2) , 42-7B-7 , 42-7B-11(11) , 42-7B-28 , 42-7B-29 , 42-7B-30 , 42-7B-41.