S.D. candidate favors repeal of video lottery

Joe Kafka

Friday, Nov. 5, 2004 | 9:27 a.m.

PIERRE, S.D. -- Ron Volesky, the only announced candidate for governor in 2006, called Thursday for an end to video lottery machines in South Dakota.

There have been several previous attempts to get rid of the gambling devices, but voters refused to go along. The last effort to remove video lottery language from the state constitution was in 2000. It failed 46 percent to 54 percent.

Video lottery, which started Oct. 16, 1989, raised $107 million last year for the treasury. The machines are privately owned, but the state licenses them and keeps half of the gross profits.

Volesky, a Democrat, acknowledges that it will be difficult to replace lost revenue if video lottery is shut down, but he said the next governor must be ready for such a challenge.

"I have always firmly believed that the negative aspects of legalized gambling in our state far outweigh its funding benefits," the former state legislator of 16 years said.

"Legalizing video lottery was one of the worst actions ever perpetrated on the people of our state," Volesky added.

Video lottery revenue has been used for several years to reduce local property taxes by 30 percent on homes, farms and ranches as part of a program begun in 1995 by former Gov. Bill Janklow.

Kay Davis, who owns two video lottery bars in Sioux Falls, said she doubts that another attempt to outlaw the games would be successful.

Davis, a Democrat who served eight years in the South Dakota House, said voters clearly expressed their views on Tuesday that they do not favor elimination of revenue without replacement funds. Voters soundly rejected a measure in the general election to repeal sales taxes on groceries.

Volesky did not specify where replacement revenue could be found if video lottery money dries up.

"When I was in the Legislature, I was taught that you are very irresponsible if you take away a funding source without a replacement," Davis said.

The state has collected about $1 billion from video lottery in the past 15 years.

Currently, there are 8,556 video lottery machines in 1,420 businesses.

Voters passed a constitutional amendment in 1986 that allowed state lottery games. Scratch-off tickets were the first games approved by the Legislature, followed by video lottery and finally lotto games.

Video lottery was controversial from the start, and numerous attempts were made by various legislators over the years to silence the gambling machines. A petition drive in 1992 forced the first statewide referendum on video lottery, but voters decided 63 percent to 37 percent to keep the games.

Opponents of video lottery next filed a legal challenge, claiming that a flawed 1989 law authorized the games, and the state Supreme Court ruled in June of 1994 that video lottery was unconstitutional. The games were shut down for several months, but legislators placed a constitutional fix on the ballot, and voters passed that measure 53 percent to 47 percent.

Volesky said his stand against video lottery is part of an overall campaign theme of stressing family values. He plans to formally announce his intentions to seek the Democratic nomination for governor early next year.

No other Democrats have yet announced their interest in the party nomination.

Volesky, a lawyer, lost to Jim Abbott of Vermillion in the 2002 Democratic primary for governor. Volesky then gained the Democratic Party nomination for attorney general. However, he lost the general election to Republican Larry Long.

Gov. Mike Rounds, a Republican, is expected to seek re-election.