State law prohibits on/off-sale licensees from making any delivery of alcoholic beverages outside of the premises described in the alcohol license.
Businesses that sell kegs are required to maintain a record of the purchaser's name and address for one year. Businesses must have a method of identification for the keg, but the identification cannot be permanent or damaging to the structure of the the keg.
The State of South Dakota does have a "holiday party policy" which allows businesses (such as motels and hotels) to rent a room for a party to private individuals who furnish their own alcohol, ice and mixers. The hotel/motel or the person holding the party cannot sell the alcohol or charge a fee for attending.