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South Dakota, Sioux Falls battle over lottery issue

28 April 2008

SOUTH DAKOTA -- As reported by the Argus Leader: "A top official in Gov. Mike Rounds' administration issued a warning to Sioux Falls city leaders last week, setting the stage for a possible legal showdown over video lottery.

"The dispute centers on an ordinance that the Sioux Falls City Council is scheduled to vote on May 5. The ordinance would close a loophole in a years-old rule that forbids video lottery machines from being placed within 2,000 feet of parks or schools.

"But in a letter to City Attorney Gary Colwill last week, Secretary of Revenue Paul Kinsman warned that only the state can regulate video lottery.

"...The letter, sent late Thursday, also went to Mayor Dave Munson. It spread quickly to other officials and the eight members of the City Council.

"...If the measure passes, a probable outcome would be a court battle between the city and state. The state would argue that Sioux Falls is overreaching in its authority. City councilors, however, argue that municipalities have broad powers when it comes to land-use issues.

"Video lottery is one of the main sources of revenue for the state, contributing $110 million to the budget last year..."

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