South Dakota Lawsuit

The Flandreau Sioux Tribe's Royal River Casino is suffering due to not enough slot machines, a lawsuit claims. Tribal officials have been trying to get the governor to meet with them over the slot machine dispute, but he refuses to. Therefore, the tribe has filed a lawsuit in federal court claiming that the state is treating them unfairly and not negotiating in good faith.

They say that since the Deadwood casinos have been allowed 3,000 slot machines, and there are more than 8,500 video gambling machines across the state, that the tribes should be allowed more slot machines as well. They say that they are currently limited to 250 slot machines, which is not nearly enough to keep up with the demand from their customers.

Federal law says that tribes can have the same kind of gambling that is offered elsewhere in the state where they are located, but that they have to try and come to an agreement with the state first. Once a compact is signed, then the tribe can bring in slot machines, etc. However, the state must negotiate in good faith, or the federal government will step in and negotiate for them, often cutting them out of a portion of the proceeds.

Deadwood starting offering slot machines and casinos in 1989, at which time the tribes started negotiating compacts with the state to bring in their own slot machines. There are nine Sioux Tribes in South Dakota and eight of them have compacts with the state. They say that because they are not allowed more slot machines, their customers will get bored waiting to play and go to neighboring casinos in Minnesota and Iowa.

The tribe is asking for more slot machines as well as an extension on their compact for 20 years so that they can secure financing to add a hotel, water park, recreation center, etc. and make themselves an entertainment destination. With the state not cooperating, it is impossible for the tribe to secure financing and thus secure a better future for their people.

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