South Dakota Code § 42-7-107

Online horse and dog racing--Required licensure--Applicable taxation
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Only a person licensed as a multi-jurisdictional totalizator hub in this state may operate an online betting platform or electronic application to offer online pari-mutuel wagering on a horse or dog race.
A person with a physical presence in this state operating an online betting platform or electronic application to offer online pari-mutuel wagering on a horse or dog race is subject to the tax imposed pursuant to §
42-7-102
on multi-jurisdictional totalizator hubs.
A person without a physical presence in this state operating an online betting platform or electronic application to offer online pari-mutuel wagering on a horse or dog race is subject to the tax imposed pursuant to §
42-7-102
on multi-jurisdictional totalizator hubs, except that the tax rate applies to the total contributed through the hub by individuals in this state on online pari-mutuel wagering pools for horse or dog races.

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