South Dakota Gambling in Deadwood, Amendment Q (2014)

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Amendment Q
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Type:Constitutional amendment
Constitution:South Dakota Constitution
Referred by:South Dakota Legislature
Topic:Gambling on the ballot
Status:Approved Approveda
2014 measures
Seal of South Dakota.jpg
November 4
Initiated Measure 17 Approveda
Initiated Measure 18 Approveda
Amendment Q Approveda
Polls

The South Dakota Gambling in Deadwood, Amendment Q was on the November 4, 2014 ballot in South Dakota as a legislatively-referred constitutional amendment, where it was approved. The measure permitted the state legislature to authorize roulette, keno, craps, limited card games and slot machines within the municipal limits of Deadwood in Lawrence County, South Dakota. Amendment Q was designed to continue to allocate all municipal revenues derived from casinos towards the Historic Restoration and Preservation of Deadwood. A sixty percent supermajority approval by local voters was no longer required under the amendment.[1]

Prior to the approval of Amendment Q, roulette, keno and craps were not permitted, but limited card games and slot machines were in Deadwood, South Dakota. Also, a sixty percent supermajority vote by city voters was required to approve a piece of legislation allowing a gambling facility.

The amendment was introduced into the South Dakota Legislature as House Joint Resolution 1001.[2]

Election results

Below are the official, certified election results:

South Dakota Amendment Q
ResultVotesPercentage
Approveda Yes 152,265 56.69%
No116,32643.31%

Election results via: South Dakota Secretary of State Office

Text of measure

Ballot title

The ballot title was as follows:[3]

An Amendment to the South Dakota Constitution authorizing the Legislature to allow roulette, keno and craps in Deadwood.

[4]

Ballot summary

The ballot summary was as follows:[3]

The Constitution currently authorizes the Legislature to allow two kinds of games of chance in Deadwood: limited card games and slot machines. The proposed amendment authorizes the Legislature to also allow roulette, keno and craps in Deadwood.

Under federal law, any games of chance authorized by the Legislature to be offered in Deadwood would also be allowed at on-reservation tribal casinos.

A vote "Yes" is for changing the constitution to allow the Legislature to authorize roulette, keno and craps in Deadwood.

A vote "No" will leave the constitution as it is. [4]

Constitutional changes

See also: Article III, South Dakota Constitution

The proposed amendment amended Section 25 of Article III of the Constitution of South Dakota:[1]

§ 25. Games of Chance Prohibited--Exceptions.
The Legislature shall not authorize any game of chance, lottery, or gift enterprise, under any pretense, or for any purpose whatever provided, however, it shall be lawful for the Legislature to authorize by law, bona fide veterans, charitable, educational, religious or fraternal organizations, civic and service clubs, volunteer fire departments, or such other public spirited organizations as it may recognize, to conduct games of chance when the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, religious, or other public spirited uses. However, it shall be lawful for the Legislature to authorize by law a state lottery or video games of chance, or both, which are regulated by the state of South Dakota, either separately by the state or jointly with one or more states, and which are owned and operated by the state of South Dakota, either separately by the state or jointly with one or more states or persons, provided any such video games of chance shall not directly dispense coins or tokens. However, the Legislature shall not expand the statutory authority existing as of June 1, 1994, regarding any private ownership of state lottery games or video games of chance, or both. The Legislature shall establish the portion of proceeds due the state from such lottery or video games of chance, or both, and the purposes for which those proceeds are to be used. SDCL 42-7A, and its amendments, regulations, and related laws, and all acts and contracts relying for authority upon such laws and regulations, beginning July 1, 1987, to the effective date of this amendment, are ratified and approved. Further, it shall be lawful for the Legislature to authorize by law, roulette, keno, craps, limited card games and slot machines within the city limits of Deadwood, provided that 60% of the voters of the City of Deadwood approve legislatively authorized card games and slot machines at an election called for such purpose. The entire net Municipal proceeds of such card games and slot machines shall be devoted to the Historic Restoration and Preservation of Deadwood.[4]


Background

The Permit Gambling in Deadwood Amendment was approved by voters in 1988. Casinos became operational in Deadwood on November 1, 1989. Casino revenues more than doubled from $25.6 million in 1990 to $56.6 million in 1991. By 2009, casino revenues peaked in Deadwood at $111 million. Since 2009, revenues have been between $104.3 million and $110.8 million. The proposed amendment was designed to allow keno, craps and roulette. The reasoning for adding these three games was to jumpstart revenue growth.[5]

Support

Supporters

Officials

The following officials sponsored the amendment in the legislature:[2]

Other officials who supported the amendment include:

Organizations

  • Deadwood Gaming Association[5]
  • Yes on Q Committee

HJR 1001 "Yes" votes

The following members of the South Dakota State Legislature voted in favor of placing this measure on the ballot.[6][7]

Note: A yes vote on HJR 1001 merely referred the question to voters and did not necessarily mean these legislators approved of the stipulations laid out in Amendment Q.

Senate

House

Arguments

The following arguments were submitted in favor of Amendment Q:[8]

In 1988, South Dakota voters authorized a constitutional amendment allowing card games and slot machines within the city limits of Deadwood. At that time, the only other states allowing legalized gaming were Nevada and Atlantic City. Now, 25 years later, the available games in Deadwood have not changed despite gaming being available in 47 other states, including our neighboring states. A YES vote on Constitutional Amendment Q will allow roulette, keno and craps in addition to card games and slot machines, to be available in Deadwood and in on-reservation Tribal casinos. As several surrounding states have added roulette, keno and craps to the gaming choices available to their customers, the popularity of these additional games has Deadwood and Tribal visitors increasingly asking for the opportunity to play them here. As with any other successful business enterprise, South Dakota’s gaming operations must diversify and meet changing customer demands in order to compete with the gaming offered by surrounding states. Deadwood gaming tax revenues provide funding for Deadwood’s historic preservation efforts, South Dakota Tourism, Lawrence County and its schools and municipalities, South Dakota’s general fund, and historic preservation projects in many communities throughout South Dakota. Tribal gaming casino revenues fund numerous programs on each reservation. Several thousand wage-competitive jobs with upward career paths are provided by South Dakota gaming operations. Constitutional Amendment Q will produce additional jobs and benefit South Dakota’s economy. As Deadwood and Tribal gaming work to develop the tourism industry in South Dakota, Constitutional Amendment Q will play an important role. We thank the citizens of South Dakota for their 25 years of support for Deadwood and Tribal gaming and ask for your YES vote on Constitutional Amendment Q.[4]

—Mike Rodman, Executive Director, Deadwood Gaming Association[8]

Campaign contributions

As of October 27, 2014, the Yes on Q Committee received had only one contribution.[9]

PAC info:

PAC Amount raised Amount spent
Yes on Q Committee $50,000 $68,283
Total $50,000 $68,283

Disclaimer: According to campaign finance reports published by the state of South Dakota, the group, Yes on Q Committee, spent more than it raised. This was possible because the group was able to accrue debt.

Top contributors:

Donor Amount
Deadwood Gaming Association $50,000

Opposition

Opponents

  • Family Heritage Alliance[10]

HJR 1001 "No" votes

The following members of the South Dakota State Legislature voted against placing this measure on the ballot.[6][7]

Note: A no vote on HJR 1001 meant that a legislator did not want to refer the question to voters and did not necessarily mean these legislators disapproved of the stipulations laid out in Amendment Q.

Senate

House

Arguments

The following arguments were submitted in opposition to Amendment Q:[8]

A “NO” vote on Constitutional Amendment Q will slow the almost constant expansion of gambling in the state of South Dakota.

Currently, in the city of Deadwood, roulette, keno, and craps are not permitted, but limited card games and slot machines have been approved. A sixty percent supermajority vote by Deadwood city voters was previously required to approve legislation allowing the current forms of gambling in their city. However, passage of Amendment Q will allow the state legislature to authorize, on their own, roulette, keno, and craps in Deadwood. Thus, the citizens of Deadwood would not have their supermajority vote in determining whether or not they wish to limit the constant advance of gambling within their own city limits. Amendment Q diminishes local control. Whereas in most cases, the free market should be the primary regulator of business, in the case of an industry that generates so much addiction, societal ills, crime, and even suicide, the gambling industry should be subject to legal restraints. The National Council on Problem Gambling (NCPG) estimates that among South Dakotans, there are approximately 18,000 gambling addicts whose addictions inflict on the state a staggering annual cost of almost $16 million dollars.

It is a fact that gambling in South Dakota is a problem for all of her citizens. When you’re dealing with one addict, you’re dealing with 8-10 other people that are affected because of the addiction. The NCPG also estimates that one in five problem gamblers will attempt suicide, about twice the suicide rate of other addictions.

Do your part to help slow the expansion of gambling in South Dakota. Vote ‘NO’ on Amendment Q. [4]

—Dale Bartscher, Executive Director, Family Heritage Alliance Action[8]

Media editorial positions

See also: Endorsements of South Dakota ballot measures, 2014

Support

  • The Rapid City Journal said,
Critics of the amendment say gambling is an unneeded vice that can lead to addiction, the collapse of families, and a general moral decline. But even as Deadwood struggles to solidify its identity as either a historic destination or strictly as a gaming town, it's clear that gambling is there to stay.

Increasing the options for visitors and locals who want to play, and giving Deadwood just a bit more cache, makes good sense. Vote "yes" on Q.[4]

Rapid City Journal, [11]

  • The Argus Leader said,
Amendment Q would allow Deadwood casinos to add roulette, keno and craps to the gaming offerings. Those games are offered in neighboring states now.

We think this measure should be approved. The new games will mix in to the existing casino configurations, replacing slot and table games, so there's no increase in the number of overall gaming devices. It's simply adding to the menu of choices as we work to keep Deadwood competitive. Their success is good for the entire state.

We urge a Yes vote on Amendment Q.[4]

Argus Leader, [12]

Polls

See also: Polls, 2014 ballot measures
South Dakota Amendment Q (2014)
Poll Support OpposeUndecidedMargin of ErrorSample Size
Mason-Dixon Polling & Research Inc.
10/20/2014-10/23/2014
39%56%5%+/-3.5800
SurveyUSA
10/21/2014-10/26/2014
52%29%19%+/-4611
AVERAGES 45.5% 42.5% 12% +/-3.75 705.5
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to editor@ballotpedia.org.

Path to the ballot

See also: Amending the South Dakota Constitution

The proposed amendment required simple majority approval in both chambers of the South Dakota Legislature. HJR 1001 was approved by the South Dakota House on January 30, 2014. The legislation was approved by the South Dakota Senate on March 5, 2014. The amendment was delivered to the secretary of state on March 12, 2014.[2]

House vote

January 30, 2014 House vote

South Dakota HJR 1001 House Vote
ResultVotesPercentage
Approveda Yes 37 55.22%
No3044.78%

Senate vote

March 5, 2014 Senate vote

South Dakota HJR 1001 Senate Vote
ResultVotesPercentage
Approveda Yes 25 71.43%
No1028.57%

Similar measures

See also

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External links

References