Senate defers video‑lottery bet‑limit increase amid concerns over gambling harms
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Summary
Lawmakers deferred consideration of a measure that would raise the state video‑lottery maximum bet from $2 to $5 and divert revenue above a $175 million threshold toward property‑tax relief after protracted testimony from gaming interests and opponents citing social costs.
Pierre — The Senate Commerce and Energy Committee deferred consideration of Senate Bill 226 (as amended) to the 40 first day after testimony highlighted competing policy goals: increased gaming revenue for property‑tax relief versus harms associated with gambling dependence.
Sponsor Senator Shane Fish said raising the maximum video‑lottery bet to $5 (up from $2) would adjust for inflation, help small rural businesses that host video‑lottery machines, and generate additional revenue that could be directed to property‑tax relief once receipts exceed a $175 million threshold. Industry witnesses and retailers argued the change would not expand locations or machines and would be a voluntary contribution mechanism.
Opponents including Family Voice Action and the South Dakota Catholic Conference urged pause, citing research that a small proportion of users account for a large share of revenue and warning that increased bet sizes could exacerbate addiction and social costs. Witnesses cited studies showing substantial societal costs and argued the state should not rely on problem gambling to fund tax relief.
After robust debate, the committee voted unanimously to defer the bill to the 40 first day to allow more review and discussion.