PIERRE (AP) - The South Dakota Lottery Commission wants to position itself to avoid the disappointments of last year's legislative session, members of the panel said Thursday.
The commission won't put forward any measures this legislative session to expand the lottery's operations. Instead, it will work with the industry on a strategy to highlight the benefits of gambling - hopefully preventing future losses such as two video lottery expansion plans that failed in 2014 - to come back for the 2016 session on strong footing.
Lottery Commission Chairman Chuck Turbiville said Thursday that January's legislative session is "an opportunity this year to become more acquainted with new legislators and to sell positive aspects of video lottery."
Commissioners at the meeting also voted not to move forward with a study of problem gambling in the state, citing its expense. They had originally proposed the study to help persuade lawmakers to expand gambling after the Legislature rejected lottery-backed initiatives to increase the number of video lottery machines allowed in a licensed establishment and to increase bet limits on the machines in 2014.
Opponents said gambling expansions provoke addictions and cause social and financial problems for families in the state. During the legislative session, they frequently used their own data to argue that gambling addiction was an issue among South Dakotans.
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Instead of getting their own study, lottery officials will now try to build a similar view from state Department of Social Services data.
Republican Rep. Steve Hickey, a staunch gambling opponent, said he's surprised the commission isn't moving forward with its own study.
"I view the Lottery Commission like the tobacco lobby. They can do their own studies and try to sell us on the fact that they're good for us," Hickey said, questioning why the group would back off. "They're making a lot of money. They can afford a study."
Turbiville said he hopes lawmakers appreciate the commission's fiscal conservatism in not spending between $518,500 and $600,000 on the study, which is what its request for bids turned up. He also highlighted the money that gambling directs to the state's coffers.
South Dakota anticipates about $110 million in revenue from video, instant and online lottery games for the current budget year - a slight rise over fiscal year 2014.
The video lottery is expected to drive state gambling revenues for the 2015 budget year, with $97.32 million coming from video games. That's compared with a combined $12.56 million in revenue from instant and online games.
Machine income for video lottery terminals after payouts is expected to be $196.6 million for the same period. Half of the lottery dollars go to the owners of the machines. The other half goes to the state, with a small share that goes to fund the Lottery.
