Articles Posted in Gaming Law

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The Supreme Court reversed the circuit court’s judgment reversing the decision of the South Dakota Commission on Gaming, which revoked Defendant’s gaming support license and banned him from entering any gaming establishment in South Dakota, holding that the sanction imposed by the Commission was within its discretion. The Commission revoked Defendant’s license and imposed a sanction after concluding that Defendant mishandled money while working in a casino and that he was untruthful in the subsequent investigation. The circuit court concluded that several of the Commission’s factual findings were clearly erroneous and that the sanction imposed by the Commission was an abuse of discretion. The Supreme Court reversed, holding that the Commission (1) did not err by concluding that Defendant acted dishonestly or fraudulently; and (2) did not abuse its discretion by revoking Defendant’s license and adding him to the exclusion list. View "South Dakota Commission on Gaming v. Johnson" on Justia Law

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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

Posted in: Gaming Law, Tax Law

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At issue in this appeal was a zoning ordinance adopted by the City of Sioux Falls requiring that an on-sale alcoholic beverage business seeking to place video lottery machines in the establishment must meet certain location requirements and apply for a conditional use permit. Plaintiff Rick Law, who conditionally held a liquor license, brought a declaratory action against the City to determine the constitutionality of the ordinance. The South Dakota Lottery intervened in the action. The circuit court ruled that the City exceeded its authority when it enacted the ordinance, concluding that South Dakota's constitutional and statutory scheme indicated that the State intended to fully occupy the field of video lottery to the exclusion of municipal regulation. The Supreme Court affirmed, holding that (1) municipalities do not have the freedom or power to regulate video lottery as the South Dakota Constitution specifically reserves that right to the State and (2) existing legislation does not give municipalities power to license video lottery establishments or otherwise control the location of such establishments. View "Law v. City of Sioux Falls" on Justia Law