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Deadwood seeks changes

Posted on May 15th, 2011

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Sensing the threat of losing its ground against video lottery establishments, people behind the Deadwood Gaming Association are poised to resort to some law modifications in order to keep in step. Spearheaded by Sen. Tom Nelson, the gaming association which embodies the casinos in Deadwood will try to bank on some constitutional amendments supplemented by a plan of adding a couple of new games in hope to ease the worries of casino operators brought about by the sprouting of slot-like games in video lottery hubs. The blueprint of the gaming association’s plan includes vying for a revision of a previously approved state law which orders casinos to have a $100 bet limit. The association of casinos plans to raise that current amount to save them from the spiral downturn of their revenues. The association also sees adding brand new games like craps and roulette as another possible option to help their cause.

Another vantage point the association is looking at is to seek another amendment of another revenue-hampering law which was approved last year. The law mandates bars and casinos to become smoke-free zones. A possible proposition the association would present to the South Dakota Legislature is the plan to have designated smoking gambling rooms separate from the typical public rooms. “I can almost guarantee we’ll be looking for some accommodations, especially for Deadwood, that would allow our customers to be able to light up and play their games at the same time,” Nelson said. Nelson added that the “no-smoking” law was really the most significant catalyst which triggered the slumping revenues in Deadwood casinos.

A notable decrease in revenues was observed in either casinos or video lottery hubs after the smoking ban was implemented last year. The law was put into action after gaining two-thirds of the statewide votes. With threats from video lottery establishments looming on the sidelines and the smoking ban hounding their operations, the gaming association is still undecided on what course to follow. “We really haven’t got a focus yet,” Nelson quipped. Nearly 1,500 video lottery outfits dispersed throughout all the communities in the state have started offering games such as poker, blackjack, keno, and bingo on their video lottery machines since the state’s Lottery Commission officially approved a rule which gave the green light for games resembling slot machines to be emulated in video lottery units last month.

Despite of possibly having a valid and feasible argument, the gaming association has chosen not to challenge the said ruling of the court. Earlier, the gaming association has come up with an argument that slot machine resembling games are not allowed in video lottery establishments based on the South Dakota Constitution but they stopped short on pursuing their case through a legal battle. Wilmot’s Jason Frerichs was delighted of the Deadwood’s Gaming Association decision. The Senate Democratic Leader said the issue between the Deadwood tribal casinos and the video lottery hubs isn’t something that should be brought upon the court but rather be mediated on discussions. But, Frerichs was wary about the gaming association’s plan to touch down on the smoking restrictions. The senator said that anti-smoking die-hards will be hard to convince with any plans of lifting or softening the smoking ban. But he didn’t discount any possibilities about the issue.

Meanwhile, Rapid City’s David Lust said he won’t shut his doors on any proposals the Deadwood people would want to present. But, the House Republican Leader added that a change of a rule on one party will not have a directly proportional effect on the other side. It means a change on the video lottery rules won’t guarantee the same effect on Deadwood’s casino gambling rules. Lust wasn’t convinced of the idea that having slot-like games in video lottery units will hamper the player count on Deadwood casinos. “I don’t think they’re going to substitute their Deadwood experience by going down to the local gas station and playing what is essentially a slot machine,” he said.

Video lottery is one of the state’s premiere money-making industries. With annual revenues of $100 million, the industry is next to the state sales tax when it comes to South Dakota’s revenue sources. Though not as much as video lotteries, the Deadwood casinos also contribute a considerable amount of money to the state and neighboring local governments.