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SD Supreme Court says city cannot regulate video lottery

SIOUX FALLS (AP) -- 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.