First Gold, Inc. v. Dep’t of Revenue and Regulation

This case involved three establishments (collectively, Establishments) that ran promotional programs intended to attract patrons to their casinos. In essence, if the patrons joined an establishment’s club, they received coupons or credits called “free play” that allowed them to play slot machines without using any of their personal money. The Establishments sued the South Dakota Department of Revenue and Regulation requesting a declaration that free play was not part of adjusted gross proceeds and was therefore not subject to gaming tax. The circuit court granted summary judgment for the Department, ruling that free play was not a deductible event in the calculation of adjusted gross revenue. The Supreme Court reversed, holding that the relevant statutes and regulations do not include the value of free play for slot machines in the calculation of an establishment’s adjusted gross revenue, and therefore, the circuit court erred in ruling that the Establishments must remit gaming tax for the value of free play. View "First Gold, Inc. v. Dep’t of Revenue and Regulation" on Justia Law