South Dakota lottery officials are taking a closer look at bulk lottery ticket buying, a practice that has caused problems in other states. While it hasn’t happened in South Dakota yet, leaders say they want to stay ahead of the issue before it becomes one.
Lottery Director Norm Lingle told the South Dakota Lottery Commission that large, organized groups are known for swooping in when the odds look favorable. These groups carefully track games where big prizes are still available or jackpots grow high enough to justify massive spending.
How it works elsewhere:
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Groups buy hundreds of thousands of tickets at once
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They rely on advanced math and odds analysis
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Some have walked away with million-dollar wins
States like Missouri, North Carolina, Maryland, Texas, and Washington, D.C., have already seen these tactics in action. In fact, a syndicate famously won a $95 million jackpot in Texas in 2023, which eventually led lawmakers there to shut down the Texas Lottery Commission and shift oversight to another state agency.
Lingle said the biggest concern isn’t just the money—it’s public trust.
“They’re very smart with the odds,” he said, adding that regulators are still figuring out what fair and effective policies should look like.
Commission Chair Steve Harding of Pierre agreed, noting this is a nationwide issue, not just a local one. Other states, including New York, Illinois, Arizona, and Montana, have already adopted new rules to limit bulk purchases and unregulated courier services.
Slow but Steady Revenue Growth
State tax collections tied to tourism and gaming are rising, though growth has been modest so far this year.
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Tourism taxes increased 3.33% from June through November, bringing in $13,687,001
(up from $13,246,505 during the same period last year) -
Gaming taxes grew 2.03% over that same time frame, totaling $2,675,104
(compared to $2,585,280 a year earlier)
Remembering a Key Figure
South Dakota Retirement System leaders shared sad news this month with the passing of Paul Schrader, a long-time consultant who played a major role in shaping the system. Schrader, of Denver, Colorado, died at age 83 on November 23.
SDRS Chair Eric Stroeder of Mobridge honored him during the board’s meeting on December 10.
“I almost consider him the father of the system,” Stroeder said, recalling Schrader’s deep knowledge and steady presence dating back to the early 1970s.
A Farewell After Nine Years
Joe Kafka of Sioux Falls is preparing to step down from the South Dakota Lottery Commission when his term ends on January 1, 2026. His final meeting was held by teleconference due to bad weather.
Kafka has followed the lottery since its early days, first as an Associated Press reporter during its creation in 1987, then later serving in state government roles. Appointed to the commission in 2016, he called the lottery “an amazing success story.”
Commission Chair Steve Harding thanked Kafka for his years of service, saying the time and effort he gave were deeply appreciated.
Briefly Noted
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The South Dakota State Fair in Huron will host the National Targhee Sheep Show and Sale from July 15 through July 18 at The SHED.
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Governor Larry Rhoden announced that South Dakota has secured $72 million in federal funding to expand high-speed internet access in underserved areas across the state.
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