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Sioux Study Finds Proposed Iowa Casino Would Hurt Tribal Gaming

By Brian Chan on July 23, 2009  Email it!    Print Version

Play Slots at Rushmore Casino! LYON COUNTY, IOWA -- A study commissioned by the Flandreau Santee Sioux says that if a new casino is opened in northwestern Iowa, it will have a negative impact on gambling revenues at Sioux tribal casinos. The survey also claims the state of South Dakota would suffer, losing both gaming revenue and taxes as money crosses the border to play at the new location.

KlasRobinson Q.E.D., a Minneapolis research firm hired to study the potential results of a casino in Lyon County, Iowa, found that South Dakota would lose about $18 million in revenue from video lottery terminals. Revenue from taxes on tribal casino gambling would probably drop around $13.5 million.

"Over $50 million from South Dakota residents would likely go to the Lyon County Casino just based off location and relative populations," KlasRobinson spokesman Matt Robinson told KSFY-TV.

The study also claimed around 500 South Dakota workers would cross into Iowa to work at the new casino, if it were established.

Of the potential five locations for new Iowa casinos, Lyon County is considered the most likely to be awarded a license. Iowa legislators clearly are aiming at drawing South Dakota residents unhappy with the gaming laws and situation in their home state.

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