South Dakota Lottery

Name

South Dakota Lottery

Legal name

South Dakota Lottery

Website

https://lottery.sd.gov

Company type

Public

Founded year

1986

Operating status

Operating

Headcount range

1–10 employees

Ownership category

akta.pro rank

Product category

State Lottery Gaming

NAICS

Gambling Industries (7132)

akta.pro primary industry

Lottery Operators (Government & Private Licensed) (MPAEAFAA)

akta.pro secondary industries

Digital Lottery & iLottery Platforms (Web/App) (MPAEAFAD), Lottery Second-Chance, Loyalty & Rewards Platforms (MPAEAFAM), Draw-Based Lottery Management (Number Games, Keno as Lottery) (MPAEAFAE)

Keywords

• State lottery games
• Scratch ticket sales
• Video lottery terminals
• Mobile prize cashing
• Lottery retailer network

Headquarters

HQ city

Pierre

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Technology or R&D, Marketing or Sales, Personnel, Others

Revenue model

1. Lotto Game Sales: Multi-state lottery games including Powerball, Mega Millions, and Lotto America, along with state-exclusive Dakota Cash game. Revenue is generated through ticket sales at licensed retail locations. Net revenue distribution: 70% to State General Fund (supports K-12 schools, state universities, technical institutes) and 30% to Capital Construction Fund (supports Water and Environment Fund, Ethanol Fuel Fund, State Highway Fund).
2. Scratch Ticket Sales: Instant scratch-off lottery tickets sold at licensed retailers across South Dakota in various price points ($1, $2, $3, $5, $10, $20). Revenue generated from ticket sales with proceeds benefiting state programs.
3. Video Lottery: Video lottery terminals operated at licensed establishments (bars/lounges) throughout South Dakota. The lottery regulates operators, distributors, manufacturers, and establishments. Revenue comes from net machine income generated by video lottery terminals.
4. Retailer Commissions: Retailers receive 5% commission on sale of each lottery ticket plus incentive commissions. Scratch ticket retailers have earned over $27 million in commissions; Lotto ticket retailers have earned over $25 million in commissions.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels6 records

Core offering

The South Dakota Lottery is a state-operated lottery that sells draw-game tickets (Powerball, Mega Millions, Lotto America, Dakota Cash, Millionaire for Life) and instant scratch tickets ($1 to $30 price points) through more than 600 licensed retailers statewide. It also operates video lottery terminals at licensed bars and lounges and provides a mobile app for ticket scanning, mobile prize claiming via ACH, Players Club enrollment, and second chance drawing entry. Net proceeds fund the State General Fund (K-12 education, universities, technical institutes) and the Capital Construction Fund (Water and Environment Fund, Ethanol Fuel Fund, State Highway Fund).

Product overview

The South Dakota Lottery operates a diversified gaming portfolio comprising both lotto draw games and instant scratch tickets, supplemented by a video lottery program and digital services. The lotto game lineup includes multi-state games (Powerball with Double Play option, Mega Millions, Lucky for Life, Lotto America, and Millionaire for Life) alongside the state-exclusive Dakota Cash game. The scratch ticket portfolio spans multiple price points from $1 to $30 with diverse themes including licensed brands. Digital services include a Players Club loyalty program with second chance drawings, a native mobile app enabling ticket scanning and mobile prize claiming, and video lottery terminals at licensed establishments. The lottery distributes approximately $161 million annually to South Dakota causes including education, natural resources, and infrastructure.

Differentiator

Problem solved

Functional benefit

Brands

• Players Club: Loyalty program offering second chance drawings, jackpot alerts, number generator tools, and exclusive promotions for registered members.

Products and services

• Powerball Multi-state lottery draw game with Power Play option. Players select numbers for a chance at large jackpot prizes. Drawings held multiple times per week. Targeted at adult South Dakota lottery players (18+).
• Powerball Double Play Add-on feature to Powerball allowing players to enter their Powerball numbers into a separate drawing with guaranteed prizes. Sold alongside Powerball tickets at licensed South Dakota retailers.
• Mega Millions Multi-state lottery draw game with large nationwide jackpots and built-in multiplier for non-jackpot prizes. Sold in 45 states plus D.C. and U.S. Virgin Islands. Targeted at adult South Dakota lottery players (18+).
• Dakota Cash Exclusive lotto game only available in South Dakota. Drawings held Wednesdays and Saturdays. Offers better odds compared to national games. Targeted at adult South Dakota lottery players (18+).
• Lucky for Life Multi-state draw game featuring top prize of $1,000 a day for life or lump sum option. Drawings held nightly. Targeted at adult South Dakota lottery players (18+).
• Lotto America Multi-state lottery draw game with draws on Mondays, Wednesdays, and Saturdays. Features faster-growing jackpots with additional draw day. Targeted at adult South Dakota lottery players (18+).
• Millionaire for Life Draw game offering top prize of $1 million a year for life ($18 million cash option) and second prize of $100,000 a year for life ($2.2 million cash option). Cost $5 per play with nightly drawings. Targeted at adult South Dakota lottery players (18+).
• Scratch Tickets Portfolio of instant win scratch-off tickets available in various price points ($1, $2, $3, $5, $10, $20, $30). Includes branded games, seasonal offerings, and themed tickets such as Game of Thrones, Jurassic Park, Diamond Deluxe, and State Fair. Sold at licensed South Dakota retailers. Targeted at adult lottery players (18+).
• Video Lottery Electronic gaming terminals operating at licensed establishments (bars and lounges with alcohol licenses) across South Dakota. Terminals provided by licensed operators, distributors, and manufacturers including IGT, Grand Vision Gaming, Ainsworth, Epic, JVL Systems, and Valicy Gaming. Players must be 21+ to participate.
• Players Club Free membership loyalty program offering winning number checking, number generator tools, number frequency analysis, jackpot alerts, and access to Play It Again second chance drawings for non-winning tickets. Available through the website and mobile app. Targeted at South Dakota adult lottery players (18+).

Quantifiable outcome

• Returns over $161 million annually to South Dakota with 95 cents of every dollar going back to the state
• +2 more outcomes

Named customers9 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Three partnerships are on record, tiered core and minor.

• Scientific Games, LLCcoreStrategic or Co-development Partner · 4 August 2025Scientific Games generates event and security procedures for the $1,000,000 JACKPOT CHALLENGE second chance promotion. They serve as the primary administrator for the multi-jurisdiction challenge event conducted for Jurassic Park ticket promotion winners, with final official event details provided to the Lottery 120 days prior to the event.
• Multi-State Lottery Association (MUSL)minorOthersMUSL has been authorized to perform drawing backup capacity in the event the South Dakota Lottery is unable to conduct a drawing due to technological issues or other circumstances, utilizing the procedures and processes contained in official guidelines.
• MonKota GamingminorChannel Partner/ Reseller/ DistributorLicensed video lottery distributor in South Dakota providing terminals and parts to operators.

Scale indicators7 records

Broad incumbents

• IGT (International Game Technology): Global lottery and gaming technology provider that supplies video lottery terminals, game systems, and instant ticket services to South Dakota Lottery and other state lotteries. Functions as a key vendor partner.
• Scientific Games: Major lottery systems provider and instant game publisher that supplies games, technology, and second chance promotion services to South Dakota Lottery and most US state lotteries. Acts as a vendor partner rather than direct competitor.
• Pollard Banknote: Major instant scratch ticket printer and lottery solutions provider serving North American lotteries. Operates as a vendor to state lotteries including those in the regional market with South Dakota.

Direct peers

• Minnesota State Lottery: Adjacent state lottery with comparable product portfolio including multi-state draw games, scratch tickets, and exclusive state games. Similar government structure and regional demographic profile.
• Nebraska Lottery: Regional state lottery offering similar draw games and scratch tickets. Comparable as a government-operated lottery in a small-population Midwestern state with similar product mix and distribution model.
• Multi-State Lottery Association (MUSL): The nonprofit association that administers multi-state lottery games including Powerball and Mega Millions. South Dakota is a member lottery and relies on MUSL for game rules, drawing operations, and backup drawing capacity.
• Wyoming Lottery Corporation: State-operated lottery in a comparable small-population state, offering similar multi-state draw games. Directly comparable as a state lottery corporation with similar legislative and operational dynamics.
• Iowa Lottery: Neighboring state lottery authority offering similar multi-state draw games (Powerball, Mega Millions) plus state-exclusive products. Directly comparable structure as a government-operated lottery serving a rural Midwestern population.
• Montana Lottery: Regional state lottery with a similar product mix of multi-state draw games and scratch tickets. Comparable in being a small-population state lottery with similar product portfolio and revenue scale.
• North Dakota Lottery: Adjacent state lottery offering Powerball, Mega Millions, Lotto America, and 2by2. Closely comparable in scope, geographic limitations, and small-population state context to South Dakota.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/south-dakota-lottery

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about South Dakota Lottery