Most may tell you that they don’t take loans out from pay day lenders for gambling but for rent. Which is probably true, because what usually happens is they spend their paycheck on gambling then don’t have money over for rent.
It will be interesting to see if Video Lottery revenue goes down due to the fact people won’t be able to get quick cash. I suspect in the first year it will probably be around 15% percent, but I think within the 2nd year, you are going to see revenue way down due to the closure of pay day lenders.
Maybe it is time to eliminate VL once and for all?
After hearing about the recent property tax increase for Minnehaha county (due to an uptick in prosecutions) I’m starting to think it is time for our public universities to do a study on what video lottery is costing taxpayers due to the crimes related to it;
Investigators say Denae Baustian stole more than $170,000 from the department. In a Lincoln County Courtroom Tuesday it was revealed that she used an ATM card to take money from department accounts which she then used to play video lottery.
I have argued for years that VL is probably costing us more then what we get out of it due to the crime surrounding the venture (embezzlement, robberies, divorces, incarceration, etc, etc.)
Isn’t it time to end this ‘experiment’ that has only been good for the machine owners and not the taxpayers?
SIOUX FALLS, SD – The South Dakota Supreme Court says the city of Sioux Falls exceeded its authority when it enacted a zoning ordinance controlling the location of businesses seeking to place video lottery machines in their establishments.
The justices agreed with a lower court ruling that regulation of video lottery is a state function to the exclusion of municipal regulation. Casino owner Rick Law sued the city after it sought to regulate where he could open new casinos.
The justices in their decision said municipalities are not given the power to license video lottery establishments or otherwise control the location of such establishments. But they said municipalities do have the power through zoning to control the location of alcoholic beverage establishments.
Agree or disagree with video lottery, doesn’t matter. The state controls the number of machines a business can have. When the council voted on this I knew they were barking up the wrong tree. I think Quen Be De Knudson said something like, “Bring on the court challenges.” Another genius move by De.
For the first five months, the Sioux Falls area saw about a 15 percent decrease. But in June, when the new casino opened, the percentage dropped 22 percent to 26 percent.
Well, duh. It’s volatile just like sales taxes. When the economy is down, people spend less money (and rob more). I have often suggested that the state moves to an income tax structure and dumps video lottery and regressive sales taxes (on essentials). But we know who is in charge, don’t we, and that ain’t never gonna happen.
Well isn’t this funny. All those pious right wingers and South Dakota leads in being a state that profits from sin. Can they say hypocrites???
From 24/7 Wall St.: As state budgets strain under huge debt loads, they are counting increasingly on “sin taxes”, one of the few reliable sources of revenue in these uncertain economic times.
States have profited from the public’s voracious appetite for easy money (gambling), nicotine (smoking) and booze (alcohol) for years. Some are more successful at it than others. A few states generate less than 1% of their revenue from preying on their residents’ vices while sin accounts for between 5% and nearly 13% of the budgets of others. Some of the difference can be chalked up to varying rates of addiction, but aggressive tax policy also plays a part. Pennsylvania makes the greatest percent of its revenue from gaming taxes of any state. It charges a 55% tax on slot machine proceeds. Conversely, Las Vegas collects only 8%.
5. South Dakota
Most Profitable Sin: Lottery ($117 Million)
Revenue From Sin: $212 Million (11th Lowest)
Total State Revenue: $3.8 Billion (The Lowest)
Percent Total Revenue From Sin: 5.63%
The National Association of State Budget Officers estimates that South Dakota collected less revenue than any state last year. That is why the state’s $212 million collected from “sin” is the fifth biggest percentage of government income in the country. The state collects the 19th most in gaming taxes in the U.S., although this is primarily because 29 states do not collect taxes on their casinos at all. The state’s biggest source of sin-based income is the South Dakota Lottery, which generated roughly $117 million in revenue last year. The state’s cigarette tax is $1.53 per pack, roughly triple that of North Dakota. The state’s alcohol taxes are also higher than most, at 27 cents per gallon of beer. According to the South Dakota newspaper The Capitol Journal, the state’s revenues from video lotteries actually dropped as much as 15% last year, possibly because of a smoking ban in casinos and bars which was enacted in November.
City Councilor Vernon Brown said the Supreme Court historically has given cities wide discretion on land-use issues. He expects the residents of Sioux Falls would like to see the matter appealed, calling it a public safety issue.
Wouldn’t spending taxdollars on getting rid of this stupid form of tax collection (which probably costs us more in social costs, as you point out . .
“I don’t think we want to locate the businesses that get the most armed robberies next to elementary schools,” he said.
be a better solution? While I agree with the judge that the state has the right to regulate VL casinos, I think all of these suits prove that VL is costing us more then helping us. It’s time to put it back on the ballot in 2012 and get rid of it once and for all.
A judge’s ruling is expected soon on the constitutionality of a 2008 Sioux Falls ordinance that makes much of the city off-limits to new video lottery machines.
Of course the city has a ‘vague’ argument;
Mark Arndt, hired to defend the city, pointed elsewhere in statute and case law. The state allows cities to enact zoning ordinances that promote the “health, safety or the general welfare of the community” when considering “the location and use of buildings,” he said. And the Supreme Court has deferred to local governments on zoning decisions.
“We defer to them because they know how to use their land,” Arndt said. “We get to set reasonable restrictions on where you can put a machine. We get to protect our schools and parks.”
So old people drinking bad coffee and crappy light beer while gambling are a threat to the safety of our schools and parks? I don’t think so. What Mark is talking about is the underlying problem with VL and why it really should just be outlawed. Casinos in SF get robbed – A lot. It’s kinda like building a fire in your living room to cook food. While there is nothing wrong with cooking food or building a fire, just like there is nothing wrong with a little gambling, there is always a risk that a casino could get robbed and your house could burn to the ground (no offense Angry Guy).
Under Iowa law, the Lyon County Resort & Casino will contribute a portion of its profits to the state of Iowa to help gamblers who become addicted. Yet most of its customers will see no benefit from that contribution because they are not Iowans.
Well duh. So how much money do casinos in SD put into a treatment fund? You would think it would be a lot considering how much money the state and PRIVATE business owners generate from the industry. Think again;
The division has an annual budget of $244,000 for such services, which comes from $214,000 from the South Dakota Lottery and $30,000 from Deadwood gaming.
Wow! What a bargain for the pain they inflict. I have often said the biggest expense from VL is the cost to taxpayers from incarceration and conviction (robberies, bad checks, etc). But we like putting people in jail, it’s a big business in South Dakota, thanks to Billy Bob Janks.
There is also something else people don’t consider about a casino in Lyon county. It is an entertainment destination. And while most people will go there to gamble, there will be a host of other things to do (golfing, dining, concerts, etc.), unlike a VL casino. Last I checked if you are not playing a machine in a VL casino, there isn’t much else to do, except eat stale popcorn and drink fizzy American light beer out of a dixie cup.
With surveillance video rolling, a young man in plain clothes robbed a Sioux Falls casino at knife-point Wednesday night, forcing the 60-year-old clerk through the business by her neck.
The crime at Paradise Casino was the 21st business robbery of the year in the city, one shy of the total for all of last year. Video lottery casinos have accounted for about half of those.
Almost one a week! WOO-HOO! I have been kind of disappointed though, there hasn’t been one in my neighborhood for awhile. I love it when investigators yell at me and tell me to mind my own business.
Clemens encouraged casino managers to do what Paradise did: Lock the doors at night and leave it up to employees to let customers inside. He said similar strategies saved two casinos from being robbed earlier this year when would-be robbers showed up at locked doors.
Actually the first solution would be to install ATM’s in the casinos that dispense winnings from scanning a ticket so that the cashier doesn’t have access to large amounts of money. But the best solution would be to get rid of this stupid way of funding government, once and for all.
TULSA, OK — The top teams in Summit League baseball played a game fitting of their standing and preseason pick late into a rainy Friday night in Tulsa, Oklahoma. Rallying from three down to send the game into extra innings, South Dakota State and Oral Roberts are tied at 6 in the 12th inning and […]
SIOUX FALLS, S.D.- Credit cards are often the most convenient way to make a purchase. But with that convenience, comes risk. A Sioux Falls couple says they’re out more than $500 this week after someone got a hold of their credit card information without physically touching their actual cards. “We opened our app and checked […]
FILE - In this May 12, 2015, file photo, Singapore teen blogger Amos Yee speaks to a reporter while leaving the Subordinate Courts after being released on bail, in Singapore. Yee whose online posts blasting his government landed in him…
FILE - In this May, 12, 2015, file photo, Singapore teen blogger Amos Yee speaks to reporters while leaving the Subordinate Courts after being released on bail in Singapore. An immigration judge in Chicago has granted asylum to Amos Yee…