Can a South Dakota qualified charitable organization run a bingo game at multiple locations simultaneously via video simulcast, with one single prize pool funded by card sales at all the locations together? And does the answer change if multiple qualified organizations jointly run the simulcast bingo?
Plain-English summary
A charitable organization in Yankton County wanted to run a bigger bingo game than any single hall could support. The idea was straightforward: hold a traditional bingo session at one physical location (with a person calling numbers, players marking cards), but simulcast the video feed of that session via the internet to other physical locations across the state where players in their own halls would mark cards from the same called numbers. All the card-package sales at all the locations would feed into a single prize pool, so the winners (whoever was first to call bingo on the simulcast pattern) would win a prize funded by revenue from every location.
The Yankton County State's Attorney sent the question to the 2012 AG. Two specific questions: could one qualified organization legally run such a multi-location simulcast bingo? And if yes, could multiple qualified organizations jointly run it?
The AG said yes to both, subject to compliance with the standard charitable bingo rules in SDCL chapter 22-25.
The statutory framework starts with the SD Constitution's general ban on gambling (art. III, § 25), modified by a 1970 voter amendment authorizing the Legislature to permit games of chance by veterans, charitable, educational, religious, fraternal, civic, service-club, volunteer fire department, and other public-spirited organizations when the entire net proceeds go to public-spirited uses. SDCL ch. 22-25 implements that constitutional authorization for charitable bingo and lotteries.
SDCL 22-25-25 lists seven general requirements for legal charitable bingo:
1. The organization must be a bona fide qualified organization (veterans group, religious, charitable, educational, fraternal, civic/service club, political party, volunteer fire department, local industrial development corporation, or political committee).
2. Proceeds cannot inure to any individual.
3. No separate organization or professional may be employed to conduct the bingo (so the organization runs it itself, not a hired bingo company).
4. Compensation for workers cannot exceed state minimum wage per hour or $60, whichever is greater (with limited exceptions for county fairs, state fair, and recognized civic celebrations).
5. No prize over $2,000 per play.
6. 30-day written notice to the county or municipality governing body, with the governing body having authority to object via resolution.
7. No leases or agreements with third parties for equipment or services associated with the bingo (except licensed distributors under SDCL 22-25-28 to 22-25-51).
Nothing in these seven requirements forbids running the bingo at multiple physical locations or pooling revenues from those locations to fund a single prize. The bingo definition in SDCL 22-25-23 requires only the standard mechanics (cards with numbers, called numbers, marking cards, declaring bingo at the right pattern), with no physical-presence requirement for the caller. As long as each participating location and organization complies with all the SDCL 22-25-25 requirements, the simulcast structure works.
Two qualifications. First, the organization has to solve the technical problem of determining who first called bingo when players are spread across multiple physical locations watching the same video feed. Whoever wins gets the pooled prize. Second, the organization has to ensure no participating location is in a municipality that has used its SDCL 9-29-5 authority to restrict or prohibit bingo in that form within municipal limits.
On the multi-organization question, the chapter doesn't preclude multiple qualified organizations from jointly conducting a lottery or bingo. SD already has examples of joint lottery fundraising. Each participating organization just has to individually comply with chapter 22-25, and the joint revenue split is per their agreement.
The opinion also includes an explicit limit: nothing in the opinion authorizes bingo through internet wagering or interactive online play. The simulcast model works only because the simulcast is one-way video of an existing physical bingo session, with players physically present at locations marking physical cards. Online wagering would require separate legislative authorization.
Currency note
This opinion was issued in 2012. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here. SDCL chapter 22-25 has been amended in places since 2012, and the specific prize cap, compensation cap, and qualified-organization list should be checked directly. The technological landscape (streaming platforms, electronic bingo devices) has also evolved, so practical implementation may have changed. The general principle (multi-location simulcast bingo with pooled prizes is allowed under SDCL 22-25 if all requirements met) appears to remain in force, but specific rules need current verification.
What the opinion meant at the time
For the Yankton County charitable organization in 2012, the opinion cleared the structural question. They could proceed with the simulcast bingo concept as long as each location complied with the seven SDCL 22-25-25 requirements and stayed within the $2,000 prize cap.
For other SD charitable organizations considering large-scale bingo fundraising, the opinion opened up a new format. Traditional bingo had been one hall, one prize, one session. The simulcast model let multiple halls feed one prize pool, theoretically letting more players participate and producing more total revenue while still respecting the per-play $2,000 prize cap. Larger prize pools meant more total revenue would have to be split across multiple plays, but the format could increase attendance and turnover.
For licensed bingo equipment distributors (SDCL 22-25-28 to 22-25-51), the opinion meant their equipment leasing could include simulcast hardware as long as the leasing relationship complied with the distributor licensing rules and didn't run afoul of the no-third-party-conductor rule.
For municipalities under SDCL 9-29-5, the opinion confirmed their authority to restrict or prohibit bingo within municipal limits. Cities that did not want simulcast bingo halls could ordinance them out.
For internet bingo proponents, the opinion was a clear no. The simulcast structure works because it is still physical bingo at physical locations; pure online wagering needs separate legislative authorization. Anyone considering an internet bingo product had to go to the Legislature, not the AG.
Common questions
Q: What is bingo "simulcasting"?
A: A traditional bingo session held at one physical location, with the video and audio of the caller transmitted live to other physical locations where players are watching the simulcast and marking their cards in real time.
Q: How does the prize pool work?
A: All the card-package sales from all participating locations feed into a single pool. The winner (whoever first announces bingo on the called pattern) gets the prize, drawn from the combined revenue.
Q: Is this legal in SD?
A: Yes, per the 2012 AG opinion, if the qualified organization complies with SDCL chapter 22-25 (and especially the seven general requirements in SDCL 22-25-25).
Q: What is the maximum prize per play?
A: $2,000 per play under SDCL 22-25-25(5). The pooled-revenue structure doesn't let organizations exceed that cap; if more revenue comes in than supports a $2,000 prize, the extra revenue goes to the organization's charitable use, not to the prize.
Q: Who can conduct charitable bingo in SD?
A: Qualified public-spirited organizations under SDCL 22-25-25(1): congressionally-chartered veterans organizations, religious organizations, charitable organizations, educational organizations, fraternal organizations, local civic or service clubs, political parties, volunteer fire departments, local industrial development corporations, and political committees on behalf of SD political candidates.
Q: Can two or more qualified organizations jointly run a simulcast bingo?
A: Yes. Each organization has to comply with SDCL chapter 22-25 individually, and the joint revenue split is per their inter-organization agreement.
Q: Can a bingo company be hired to conduct the simulcast?
A: No, per SDCL 22-25-25(3). The qualified organization must conduct the bingo itself. The organization can use licensed distributor equipment (SDCL 22-25-28 to 22-25-51), but cannot hire a separate operator to run the bingo on its behalf.
Q: How much can workers be paid?
A: Up to state minimum wage per hour or $60 per bingo session, whichever is greater, under SDCL 22-25-25(4). Exceptions exist for county fairs, the state fair, and recognized civic celebrations.
Q: Does this allow online bingo?
A: No. The 2012 opinion explicitly excludes internet wagering or interactive online play. The simulcast structure works because players are physically present at physical locations playing physical cards; pure online play requires separate legislative authorization.
Q: What about local restrictions?
A: Municipalities can use their SDCL 9-29-5 authority to restrict or prohibit bingo within municipal limits. Organizers have to check the local rules at each participating location.
Background and statutory framework
SD's constitutional framework for gambling starts with a baseline ban (art. III, § 25, paired with the general illegality of gambling under SDCL 22-25-1). In 1970, SD voters amended the Constitution to authorize the Legislature to permit games of chance by public-spirited organizations when entire net proceeds go to public-spirited uses (educational, charitable, patriotic, religious, public-spirited). The amendment was the constitutional foundation for charitable bingo and lottery in SD.
The Legislature implemented that authorization through SDCL chapter 22-25. The chapter does not create a regulatory agency or licensing scheme for the games themselves. Instead, it imposes general requirements that qualified organizations must follow, with criminal penalties (SDCL 22-25-26, Class 2 misdemeanor) for non-compliance. The structure puts compliance responsibility on the organizations and their volunteers, with state's attorneys and county prosecutors as enforcement backstop.
SDCL 22-25-23 defines bingo as a structured game: each player gets a card or board with rows of numbered spaces (5x5 grid with a free center), the caller announces numbers, players cover matching numbers, and the first player to cover a pre-announced pattern (horizontal row, vertical row, diagonal, or other pattern) calls bingo and wins. The definition is mechanical and does not require physical co-location of caller and player. The 2012 AG reads that omission as permissive: nothing in the definition says the caller must be physically with the players.
SDCL 22-25-25 lists the seven general requirements. The 2012 AG works through each implicitly. The bingo simulcast meets:
- Requirement 1 (qualified organization): Only qualified organizations participate.
- Requirement 2 (no individual benefit): Net revenue goes to the charitable purpose, not to individuals.
- Requirement 3 (no separate operator): The organization runs the bingo itself, not via a hired company.
- Requirement 4 (compensation cap): Workers compensated within statutory limits.
- Requirement 5 ($2,000 prize cap): Each play's prize stays at or under $2,000.
- Requirement 6 (30-day local notice): Notice given to each participating location's local government.
- Requirement 7 (no third-party equipment except licensed distributors): Equipment from licensed distributors only.
The simulcast format adds two practical concerns. First, determining who first called bingo across multiple locations watching the same simulcast feed is a technical challenge (latency, audio sync, witness verification). The organization has to solve that to comply with SDCL 22-25-23's "first to announce bingo" winner-determination rule. Second, each participating location is in a specific municipality, and SDCL 9-29-5 lets municipalities restrict or prohibit bingo. The organization has to check each location's local rules.
The multi-organization question (Question 2) is handled briefly. The chapter doesn't preclude joint conduct of a bingo session by multiple qualified organizations. Joint lottery fundraising already happens in SD. As long as each organization individually complies with chapter 22-25, the joint conduct works. The inter-organization revenue split is per their own agreement.
The internet-bingo limit at the end is the AG's caution. The simulcast structure stays within current law because players remain physically present at physical locations playing physical cards. Pure online bingo (players logging in from home, virtual cards, online wagering) would convert the activity into a different category that the chapter's "bingo" definition does not capture. The AG signals that any future online expansion needs explicit legislative action, not just creative reading of the current statute.
The opinion is also notable for what it does NOT regulate. SD has no state bingo commission or licensing agency for charitable bingo (only for paid bingo distributors). The structural framework is light-touch: define qualified organizations, set general requirements, let compliance be self-enforcing with criminal backstop. The 2012 AG opinion fits that posture by reading the general requirements permissively, finding new formats compatible with the existing rules rather than requiring new rules.
Citations and references
Constitutional provision:
- S.D. Const. art. III, § 25 (games of chance authorization)
Statutes:
- SDCL ch. 1-24 (Joint Powers Act)
- SDCL ch. 22-25 (gambling and lottery)
- SDCL 22-25-1 (general illegality)
- SDCL 22-25-23 (bingo definition)
- SDCL 22-25-24 (lottery definition)
- SDCL 22-25-25 (seven general requirements)
- SDCL 22-25-26 (criminal penalty)
- SDCL 22-25-28 to 22-25-51 (distributor licensing)
- SDCL 9-29-5 (municipal restriction authority)
- SDCL 5-14-23 (industrial development corporation)
Cases:
- Midwestern Enterprises, Inc. v. Stenehjem, 625 N.W.2d 234 (N.D. 2001) (gambling elements)
- Bayer v. Johnson, 349 N.W.2d 447 (S.D. 1984) (game of chance definition)
Source
Original opinion text
STATE OF SOUTH DAKOTA
OFFICE OF THE ATTORNEY GENERAL
September 12, 2012
Robert W. Klimisch
Yankton County State's Attorney
410 Walnut Street, Suite 100
Yankton, SD 57078
OFFICIAL OPINION NO. 12-03
Re: Legality of Bingo Simulcasting With Prize Pool
Dear State's Attorney Klimisch:
You have requested an official opinion from this office regarding the following questions:
QUESTION 1: Whether a qualified organization that complies with 22-25-25 may legally conduct bingo by linking multiple locations together through video simulcasting a bingo session with a single prize pool?
QUESTION 2: If the answer to Question 1 is "yes," whether that answer changes if the bingo session is conducted by multiple qualified organizations?
ANSWER: Assuming the provisions of SDCL ch. 22-25 are met, a single qualified organization or multiple qualified organizations may legally conduct bingo games at multiple locations through video simulcasting, and the entity or entities may pool revenues obtained at each location to award prizes.
FACTS: The Yankton County State's Attorney's Office has been approached by a charitable organization which desires to link multiple locations for the purpose of conducting bingo. A bingo session would be conducted by the organization or in conjunction with other organizations in full compliance with state law. Only organizations qualified to conduct bingo under SDCL 22-25-25 would participate; all prizes would be generated from the card/package sales at the multiple locations; a traditional bingo game would be conducted at one location and simulcast to all other locations through a video feed via the Internet or similar transmission service; and no actual wagering over the Internet or similar transmission service would take place. The bingo participants' activities would be unchanged, except any prize awarded would be based upon revenues received from participants at all locations. The net revenues generated from a bingo session would be used to benefit the organization, consistent with state law. If multiple qualified organizations participated in conducting bingo, the net revenues from the bingo session would be divided as agreed upon by the participating organizations.
IN RE QUESTION NO. 1:
Gambling is illegal in South Dakota except as allowed under art. III, § 25 of the South Dakota Constitution and as authorized by the state Legislature. "The elements of gambling are generally recognized as consideration, prize and chance." Midwestern Enterprises, Inc. v. Stenehjem, 625 N.W.2d 234, 236 (N.D. 2001). The South Dakota Supreme Court, in Bayer v. Johnson, 349 N.W.2d 447, 449 (S.D. 1984), defined a "game of chance" for constitutional purposes as "a contest wherein chance predominates over skill."
In 1970, the people of South Dakota amended our constitution by adding a proviso authorizing games of chance by public-spirited organizations. The relevant portion of art. III, § 25 provides:
[I]t shall be lawful for the Legislature to authorize by law, bona fide veterans, charitable, educational, religious or fraternal organizations, civic or service clubs, volunteer fire departments, or such other public spirited organizations as it may recognize, to conduct games of chance when the entire net proceeds of such games of chance are devoted to educational, charitable, patriotic, religious, or other public spirited uses.
Subsequent to this constitutional authorization, the Legislature permitted public-spirited organizations to conduct two games of chance, lotteries and bingo, upon compliance with certain statutory prerequisites. These provisions are codified in SDCL ch. 22-25.
For the purpose of public-spirited gaming, SDCL 22-25-23 defines bingo as follows:
As used in this chapter, the term, bingo, is that game in which each player is supplied a card, board, or electronic bingo device containing five adjoining horizontal and vertical rows with five spaces in each row each containing a number or figure therein, except for the central row with four spaces, each containing a number or figure therein and the word, free, marked in the center space thereof. Upon announcement by the person conducting the game of any number or figure appearing on the player's card, board, or electronic bingo device, the space containing the figure or number is covered by the player. If the player covers all five spaces in any horizontal or vertical row, covers four spaces and the free space in a five space diagonal row, or covers the required combination of spaces in some other preannounced pattern or arrangement, the combination of spaces covered constitutes bingo. The player to first announce bingo is awarded money, merchandise, or some other consideration by the person conducting the game. For purposes of this section, an electronic bingo device does not include any device which may be activated for play by a player inserting coins, tokens, tickets, vouchers, or similar objects of value or which is capable of dispensing coins, tokens, vouchers, tickets, or any similar object of value.
No state entity is charged with regulating public-spirited gaming. Rather than establishing a formal regulatory scheme, the Legislature chose to set forth minimum general requirements necessary to legally conduct lotteries and bingo. SDCL 22-25-25 provides the general requirements a public-spirited organization must comply with to legally conduct bingo. Conducting bingo in violation of SDCL 22-25-25 is a class 2 misdemeanor. SDCL 22-25-26. SDCL 22-25-25 currently provides:
The game, bingo, as defined in § 22-25-23, or lottery, as defined in § 22-25-24, may not be construed as gambling or as a lottery within the meaning of § 22-25-1, if:
(1) The bingo game or lottery is conducted by a bona fide congressionally chartered veterans organization; a religious, charitable, educational, or fraternal organization; a local civic or service club; a political party; a volunteer fire department; a local industrial development corporation as defined in § 5-14-23; or a political action committee or political committee on behalf of any candidate for a political office which exists under the laws of the State of South Dakota;
(2) The proceeds therefrom do not inure to the benefit of any individual;
(3) No separate organization or professional person is employed to conduct the bingo game or lottery or assist therein;
(4) No compensation of any kind in excess of the state minimum wage per hour or sixty dollars, whichever is greater, in value is paid to any person for services rendered during any bingo session in connection with the conduct of the bingo game or in consideration of any lottery. However, the provisions of this subdivision do not apply to games or lotteries conducted in connection with any of the following events: a county fair conducted pursuant to § 7-27-3, the state fair conducted pursuant to chapter 1-21, or a civic celebration recognized by resolution or other similar official action of the governing body of a county, municipality, or village;
(5) No prize in excess of two thousand dollars is awarded at any one play of bingo;
(5A) The actual value of any lottery prize is stated before any chances for the lottery are sold. A lottery prize of a stated amount of dollars in value may be given to a person who sells a winning lottery ticket or share as long as the winning lottery ticket or share is selected at random;
(6) The organizations authorized under subdivision (1) of this section, before conducting a bingo game or before selling any chances for a lottery give thirty days' written notice of the time and place thereof to the governing body of the county or municipality in which it intends to conduct the bingo game or lottery, and the governing body does not pass a resolution objecting thereto. However, any organization that conducts a lottery and tickets or shares for such lottery are sold state-wide shall provide written notice of such lottery pursuant to this subdivision only to the secretary of state and to the governing body where the drawing for such lottery is held. A municipality pursuant to § 9-29-5 may by ordinance prohibit within the municipality the sale of lottery tickets or shares for such lottery issued pursuant to this section; and
(7) No organization authorized to conduct a bingo game or lottery under subdivision (1) of this section may enter into any lease or agreement with any other person or organization to provide equipment or services associated with the conduct of a bingo game or lottery. However, this subdivision does not apply to any lease or agreement with a distributor licensed pursuant to §§ 22-25-28 to 22-25-51, inclusive, to provide bingo or lottery equipment and supplies.
This office has previously construed the provisions of SDCL §§ 22-25-23 and 22-25-25 to authorize bingo only in its traditional format: with an individual or individuals calling numbers or figures and participants marking or daubing the numbers on their cards, boards, and now electronic devices. What the charitable organization is seeking to do in this case does not depart from how a bingo game is traditionally conducted. Nothing in the bingo definition or general requirements mandates that the person calling a bingo game be physically present at each location where the game is being conducted. Further, nothing prevents the pooling of revenues from participants at different locations playing the same bingo game to award prizes. SDCL 22-25-25(5) only places a limit on the maximum prize awarded at any one play of bingo.
Thus, in my opinion, a qualified public-spirited organization which complies with the requirements of SDCL §§ 22-25-23 and 22-25-25 may legally utilize simulcast broadcasting to conduct bingo at multiple locations. Further, the organization may utilize revenues from each of those locations to determine the amount available for awarding prizes, as long as no prize exceeds the maximum amount authorized under SDCL 22-25-25(5).
The above opinion is subject to two qualifications, one technical and the other legal. First, the organization must overcome the technical difficulty of assuring that the player who first announces bingo is awarded the money, merchandise, or other consideration consistent with SDCL 22-25-23. Second, the organization must ensure that bingo sessions conducted by simulcasting are not located in municipalities which have enacted regulations under SDCL 9-29-5 to restrict or prohibit bingo conducted in this manner.
Further, nothing in this opinion should be construed or interpreted as stating that a qualified public-spirited organization may legally conduct a bingo game or session through the use of the Internet or similar types of interactive communications devices or software. Such use of the Internet or similar services, systems, or networks to place wagers or play bingo would require specific legislative authorization.
IN RE QUESTION 2:
There is no requirement in SDCL ch. 22-25 that precludes qualified public-spirited organizations from agreeing to jointly conduct a lottery or bingo session. I am aware of lotteries being conducted as part of a multiple-organization fund-raising effort. My answer to Question 1 does not change if the bingo session being simulcast is conducted by multiple qualified organizations, as long as each organization complies with SDCL ch. 22-25.
Very truly yours,
Marty J. Jackley
Attorney General
MJJ/JPH/jkp