Patron Disputes: Administrative Rules

20:18:12.01:07. Patron disputes. In a patron dispute, a licensee must notify the disputing patron that the patron has a right to have a commission agent present when the dispute is discussed or resolved.

If a licensee refuses payment of alleged winnings to a patron, the licensee and the patron are unable to resolve the dispute to the patron's satisfaction, or the dispute involves at least $250, the licensee must immediately notify the executive secretary or a designee. The executive secretary or a designee shall conduct whatever investigation is necessary. Following the investigation, if necessary, the executive secretary or a designee shall render a decision on the dispute.

The executive secretary must notify the licensee and the patron in writing of the executive secretary's decision regarding the dispute within 30 days after the date that the notice of the dispute was first received. A patron or a licensee aggrieved by a decision of the executive secretary or a designee may appeal to the commission.

A licensee's failure to notify the executive secretary, failure to notify the patron of the patron's rights, or failure to pay after an adverse decision is grounds for disciplinary action.

Source: 16 SDR 57, effective October 1, 1989; transferred from § 20:18:21:12, 21 SDR 98, effective November 30, 1994; 29 SDR 107, effective February 2, 2003.

General Authority: SDCL 42-7B-7

Law Implemented: SDCL 42-7B-3, 42-7B-7, 42-7B-11(13).

Cross-Reference: Petition for hearing, § 20:18:11:01.