PIERRE, S.D. (KELO) — The South Dakota Lottery continues moving forward on a scan and redeem system that would let players use their phones or internet devices to collect prizes larger than $100.

Now there’s a rough date for when it might start.

“Hopefully by October 14 we will go live with this,” deputy director Clark Hepper told state Lottery Commission members at their quarterly meeting last week.

The mobile-claims process would work for lotto and instant ticket prizes of $101 to $5,000. Any prize larger than $599 would still require an IRS filing.

Players would be required to provide their Social Security numbers and bank-account information when submitting claims.

Payment would be made electronically to the winner’s account.

The new approach means winners of prizes larger than $100 won’t have to drive to one of the lottery’s redemption centers in Sioux Falls, Pierre or Rapid City, or risk sending a winning ticket through the mail.

Retailers currently pay prizes of $100 or less. That part won’t change.

“Basically we’re trying to minimize the expense to the player and make it more convenient to do that process,” Hepper said.

Another thing that won’t change is the lottery checking whether a winner of more than $100 has any outstanding financial obligations to state government, including child support, which runs through the state Department of Social Services.

Those debts will be subtracted from the winning amount, just as they are now.

Two years ago, Governor Kristi Noem vetoed legislation that would have increased the exempt amount to $599 from $100. The proposal came from Republican Sen. David Wheeler, a past member of the Lottery Commission.

In her veto letter, the governor wrote, “In the last two years, 44 prizes from winning lottery tickets were under $599 and helped pay past due child support obligations. This resulted in South Dakota families receiving resources that were due to them. Under this legislation, those families may not receive that support to buy essentials.”

Lottery director Norm Lingle told the commission Thursday that players won about 5,400 prizes in the $101 to $5,000 range during 2023.

Hepper said the lottery’s administrative rules will need to be changed because payments currently are allowed only by cash or check.

Commission chair Jason Arndt of Sioux Falls asked whether other state lotteries were adding the electronic-payments method. Hepper said Texas has made the conversion and that New Jersey is in the process. “We’re probably one of the early providers of this,” Hepper said.