In Sioux Falls, South Dakota, city council members said some casinos are creatively avoiding complying with the state smoking ban by opening tobacco shops in the same buildings as video lottery businesses. Councilor Dean Karsky said, “I think they’re really skirting with the edge of what should be allowed there. It seems to me what’s going on there is a direct contradiction to what the voters of South Dakota said.” He noted other business owners are complaining about unfair competition.
Video lottery facilities are regulated by the state smoking ban, passed by voters in 2010, but not tobacco shops. According to state law and administrative rules, lottery machines must be located in certain areas of an establishment where alcohol is regularly dispensed and consumed during specified times of the day. Tobacco shops are not allowed to sell alcohol.
To get around the ban, for example, one Sioux Falls video lottery facility has an inside door with a separate address, behind which is a cigarette vending machine and three video lottery machines, according to the Argus Leader.
Karsky said city council members should scrutinize liquor license requests more closely and deny them if state laws are broken. “It’s frustrating. It’s been one of my deals for the last several years, this situation where we have laws that aren’t enforceable, or that aren’t enforced. Why do we even bother?” he questioned.
However, the situation is “somewhat complicated,” said South Dakota Lottery Executive Director Norm Lingle, especially in regard to business boundaries. He said his staff is attempting to resolve the issue, and added legislators also could “make tweaks to various statutes.”
