Analysis: Sioux Falls betting on video lottery regulations

Rapid City, Yankton, Aberdeen have similar caps, but have never been challenged in court

Raise your hand if you’ve seen this movie before: Sioux Falls city councilors vote to take an aggressive regulatory stance against video lottery, only to be challenged and taken to court.

That could be the scenario following the City Council’s vote to cap the number of video lottery casinos eligible for a beer or wine license in Sioux Falls. Without access to an inexpensive beer and wine license, a business owner wanting video lottery would need to shell out $200,000 or so for an on-sale liquor license.

The script sounds eerily similar to a movie that played here almost 15 years ago. After the City Council voted to enact a 2,000-foot barrier to any new video lottery casino near a park or school, video lottery owners took the city to court. The 2,000-foot barrier proved to be a de facto ban on new video lottery establishments, in essence shutting down the industry from future growth. Ultimately, the issue landed in the lap of the South Dakota Supreme Court. The court ruled against the city.

NEWS: Dueling concepts have Lincoln County split over potential justice center