Manufacturers of golf distance finders advertise that their products are legal for tournament play, but pro football Hall of Fame receiver Jerry Rice was disqualified from a Nationwide Tour event for using one. Sometimes they are legal and sometimes they are not--it depends on who is conducting the tournament. You should do some homework before you take one out in competition, because you will be disqualified at certain events for using a distance finder.
USGA Ruling
The United States Golf Association has a rule that bans devices that gauge or measure distance. However, it allows rules committees of events to create a local rule that allows the devices. Most events that don't involve prize money or national titles have made local rules that allow distance finders, so if you are just having fun or trying to win the local club championship, you probably shouldn't worry. Just check with the rules official first.
Professional Tours
Touring professionals like to know the exact yardage from every tree, bunker and sprinkler on every course they play. When you see a caddy flip through his yardage book, you can bet that he used a distance finder during the practice round to chart every situation his pro might end up in. He just can't use one during the actual tournament.
State and Local
If you are a competitive golfer and hope to be the champion of your state, you can probably use your distance finder. Most states allow them, but be certain to check first. If you just play in your local club events, you likely can use your distance finder. Also, when playing for a score to create a handicap, make sure distance finders are allowed under the local rule for each course.
Local Violations
Even though the USGA has provided for a local rule allowing distance finders, make sure your device doesn't violate the local rule. If your device is capable of gauging or measuring other conditions, such as wind speed, wind direction or slope of terrain, you are in danger of disqualification. This is true even if you don't use those features.
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