Prohibit automatic issuance of video lottery machines to a restaurant operating with a full-service restaurant on-sale license.
The effect of SB92 is to modify existing laws concerning video lottery machine licensing. Under the new regulations, municipalities will have a decisive role in determining the number of licenses issued, thus preventing any new licenses from being granted if a municipality has already reached its allocated cap. Restaurants currently operating with a video lottery license before the enactment of this law will retain their ability to renew or transfer their licenses. This creates a stress point for new businesses wishing to enter the market post-2024.
Senate Bill 92, introduced by Senator Rohl, aims to regulate the issuance of video lottery licenses for restaurants that hold a full-service restaurant on-sale license. The bill stipulates that, after June 30, 2024, a restaurant may only be issued a new video lottery license if the respective municipality has available licenses and has not exceeded the maximum number permitted. This legislation intends to tighten control over the distribution of video lottery machines, which is a significant aspect of gaming regulation in South Dakota.
There may be points of contention surrounding SB92 as it shifts the balance of licensing power towards municipalities. Some stakeholders may view this as a necessary step to regulate gaming more effectively and responsibly, ensuring that local governments can control the number of gaming venues. However, restaurateurs might argue that limiting the issuance of new licenses may hinder their business opportunities, especially in a competitive market. Additionally, there may be concerns regarding how municipalities will manage this new authority, particularly in relation to community needs and preferences.