South Dakotans probably would support higher bet limits and more machines if such moves would reverse a decline in gambling revenue that threatens property tax reductions, an industry spokesman said Thursday.
“I do think there is more of the public saying, ‘I like my property tax reduced ... and if this is going to have a negative impact, I’m concerned,’ “ said Robert Riter, a lobbyist and lawyer for the Music and Vending Association of South Dakota.
“People who look at the issue realize this is a big income-producing item for the state of South Dakota.”
But Riter said he is unaware of any efforts to ease restrictions on video lottery machine numbers in small casinos and $2 limits per bet in future sessions of the Legislature.
Riter spoke at a roundtable discussion on casino gambling hosted by the Argus Leader Editorial Board.
Joining him were Sharon Haselhoff, general manager of the Grand Falls Resort Casino near Larchwood; local businessman Bruce Eide; Steve Christensen, general manager of the Royal River Casino and Hotel in Flandreau; and Tony Reider, chairman of the Flandreau Santee Sioux Tribe.
The Grand Falls casino, which opened a week ago, offers 700 machines, compared with 250 at Royal River.
But Christensen said visitor numbers at Royal River were higher this month compared with a year ago.
Time will tell whether the area has too many, too few or the right number of casino opportunities, he said, echoing a comment made by Haselhoff.
Haselhoff said her casino is designed as a destination resort and will help people extend their stay in the region.
Video gambling revenue has been declining for the past 15 years, Riter said. Since it started, $1.5 billion has gone to property tax relief in South Dakota.
Since the state smoking ban was imposed last year, casino revenues have dropped 17 percent, Riter said.
“We’re looking at ideas for the state to increase its revenue and for small business owners to hold their own,” he said. “We’re looking at ways to retain vitality.”
The Flandreau Santee Sioux Tribe wants more gambling devices and has sued the governor’s office in federal court. Reider said the case is scheduled to go to trial next month.
“We would like to be able to expand our gaming industry,” he said.
The state-imposed cap of 250 machines does not allow the Flandreau casino to expand.
Eide said Iowa was a bad neighbor for allowing casinos to target border states.
Still, he said he bears no ill will toward Grand Falls.
“I say more power to you,” Eide said. “You’ve got a business to tend to.”
Reach reporter Jill Callison at 331-2307.
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