PIERRE, S.D. (KELO) — The South Dakota Lottery can go ahead with a big change.
The Legislature’s Rules Review Committee on Tuesday gave final clearance to mobile-cashing of prizes that exceed $100 up to $5,000 won on instant-ticket and lotto jackpot games.
The lawmakers also agreed to changes in the Mega Millions game.
The package received approval last month from the South Dakota Lottery Commission. Norm Lingle, the lottery’s executive director, went before the rules committee on Tuesday.
Currently, instant-ticket and lotto prizes of more than $100 have to be claimed at one of the lottery’s redemption centers in either Rapid City, Sioux Falls or Pierre or redeemed through the mail.
Lingle noted that the mail isn’t always dependable, while driving any distance to one of the redemption centers requires spending on fuel.
He explained that lottery players would download the mobile-cashing app on their mobile devices. They could then scan the bar code of a winning ticket and the app would transfer the information. The prize amount, minus any tax or other offsets, would then be transferred to the winner’s bank account or sent by check to the winner’s address.
Republican Rep. Jon Hansen asked whether the lottery might someday allow prizes of $100 or less be claimed electronically. Currently those prizes can be redeemed at South Dakota businesses that sell instant or lotto tickets or at one of the lottery’s three centers.
That would be unlikely, according to Lingle. “Retailers are our partners and we don’t want to do anything to hurt them,” he said.
Democratic Sen. Red Dawn Foster asked if player data was sold. “Any of our information is confidential. We do not sell it to advertisers,” Lingle said, adding that the information is kept on the vendor’s system.
Republican Sen. Jim Mehlhaff asked whether mobile-cashing could be used when he wins a multi-million lotto jackpot. Lingle said no, that Mehlhaff would need to appear in person.
“And when will I be winning that?” Mehlhaff asked.
“As I tell everybody, you have to buy a ticket first,” Lingle said.
