South Dakota Code § 42-7B-44

Expenditure of public funds for purchase of certain machines--Proceeds--Placement
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The City of Deadwood may expend public funds for the purchase of five-cent or less slot machines and may own or lease no more than fifty five-cent or less slot machines to be placed within the city. The machines shall be licensed and stamped by the commission; however, no license stamp fee applies to these machines. The net proceeds generated by the operation of these machines minus lease or purchase payments shall be deposited in the South Dakota commission fund. The City of Deadwood may contract for these machines and these machines may only be placed in a retail licensed business.

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