Opinion

Column: Potential casino in South Dakota becomes campaign issue

Wednesday, August 4, 2010

"Now, the two major party candidates for governor this November are chiming in on the casino issue. Scott Heidepriem says if elected, he would form a bipartisan committee to determine the best approach to building a competing casino in Sioux Falls.

Dennis Daugaard is taking a more neutral approach, saying as governor,he might look at the possibility of a Sioux Falls casino but will take a wait-and-see stance at this time.

Of course, both candidates are from Sioux Falls. And it's not difficult to guess what's on their minds. Sioux Falls could get squeezed financially from both sides, Iowa on one hand, and Deadwood on the other.

Gambling in the Northern Hills is big business. Deadwood has about three dozen casinos that have been largely responsible for 2,000 new jobs and millions of dollars for historic renovation of many of Deadwood's old buildings and infrastructure, including rebuilding Main Street with bricks. Since the start of legalized gambling, more than $200 million in taxes and fees have gone to state government.

And the Deadwood gambling industry is growing. The nearly $50 million Lodge at Deadwood opened last year with a hotel and convention center along with a casino, and work is progressing on converting the former Homestake Mining Company's Slime Plant near downtown into a huge entertainment mecca and casino.

A Sioux Falls destination casino will face several major obstacles, including the possibility of amending the state constitution by a statewide public vote, which was required to allow Deadwood gambling. Another approach being discussed is partnering with the Flandreau Sioux Tribe to build a casino in or near Sioux Falls at a location that would be designated as Indian Trust Land. That idea would require approval from the federal government. And video lottery businesses along with existing tribal and Deadwood casinos would probably not welcome the competition.

But with the cash-strapped state government looking for new sources of revenue, a Sioux Falls destination resort casino may not be out of the question. In other words, don't bet against it."

Get the Story:
JIM SHAW: Casino could meet need for revenue (The Rapid City Journal 8/3)