South Dakota Prepares Answer to Iowa Casino

A potential casino in north Iowa has South Dakota legislators pondering their own gambling alternatives.

Iowa officials seem on the brink of licensing a new casino location, in Lyon County scant miles from the South Dakota border. The gaming project has caused South Dakota lawmakers to consider answering with a casino of their own.

Lyon County is among the least populated areas of Iowa, holding only 16,000 individuals. But Sioux Falls, South Dakota, is only ten miles away, and has a population of 300,000.

“Larchwood is saying to Sioux Falls, we're going to make use of your population base," says South Dakota state Senator Scott Heidepriem. He and other Dakota lawmakers are concerned Iowa will take revenue while contributing nothing to Sioux Falls.

Heidepriem led a movement this year to amend the state constitution to allow lawmakers the option to license casinos. The bill passed the Senate but was never brought to the House floor.

Now Heidepriem contends that both the state lottery and local community costs are at risk to the Iowa project. He says Sioux Falls will need its own casino, or else the Iowa gambling venue will drain lottery sales and increase area social ills.

He says South Dakota depends on lottery revenue, and projections of the attrition done to sales by an Iowa casino are alarming.

Iowa gaming regulators are scheduled to make a decision on the Lyon location on July 16th.