All clear in South Dakota - Euroslot - the independent voice of the amusement and gambling industry

All clear in South Dakota

Published: 13 May, 2011

On 25 March, the South Dakota Lottery Commission voted unanimously for a rule change that allows operators to add new, slot-style games to the state’s 9156 video lottery terminals (VLTs).

The list of permissible games has long been murky, and the state’s VLTs have only offered poker, blackjack, keno and bingo. Supporters claimed that “line” and slot-style game play were already technically legal, but acknowledged that no exact regulations to implement their operation had ever been formally adopted.

Critics cite a lack of constitutional authorisation for slot machines in non-casino locations. They claim that operating them could incite court challenges from Deadwood casinos and other groups.

The South Dakota Music and Vending Association advocates that new games could help operators recover some lost revenues from 2009, ranging from a 16 percent to 42 percent, which resulted from the first four months of the state’s new smoking ban. The ban expanded to cover alcohol-serving locations in 2009. Operators estimate that lower customer traffic and smaller collection totals will cost South Dakota $20m in annual tax revenues.

A legislative committee must approve the VLT game menu expansion before the enactment of the new rules. Game manufacturers will then submit new games to state regulators for licensing before installation.

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