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The South Dakota Limited Gaming Law authorized slot machines, poker, and blackjack in the City of Deadwood. It was subject to a 60% voter approval later received from the residents of Deadwood. Deadwood is an historic town with a long history of illegal gambling and prostitution that continued without significant government interference into the middle of this century.

Eventually, the historical town deteriorated. Town leaders pushed for legal gaming to save the town. They sponsored a statewide petition to place a proposition on the ballot that was approved. Gaming began in November 1989. (more…)

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Although Missouri has recently approved legal gaming, legal disputes are slowing the growth of the industry. Riverboat gaming was approved by legislation and enacted in 1995.

Regulatory Agency

The legislation established the Missouri Gaming Commission. The commission assumed the responsibilities of the Missouri Horse Racing Commission. Although horse racing is legal in Missouri, there are not any horse tracks. The commission is composed of five members serving no more than two staggered three-year terms. The commissioners are appointed by the Governor and confirmed by the Senate.

Tax Structure

The state collects a $2 per head admissions tax and a 20% tax on adjusted gross revenues.

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Following the examples of Iowa and Illinois, the Mississippi Legislature authorized gaming on boats on the Mississippi River and its navigable tributaries. Gaming was also authorized in Oxbow Lakes bordering the river, in the waters of the Mississippi Sound, and off of the three Mississippi Gulf Coast counties. The effective date of the law was April 1, 1990. If a city or county does not want the gaming boat to dock in its ports, a petition signed by 20% or 1,500 of the registered voters may force a vote on the issue.

All forms of gaming are authorized. New games can be approved by the Mississippi Gaming Commission. Charitable bingo is also authorized under Mississippi law, and regulated by the Commission.

Gaming is not automatically legal in each of these counties. An applicant must file a notice of intent with the Commission. If no petition is filed with the County Board of Supervisors within 30 days of the last date of publication, the Board of Supervisors must adopt a resolution saying that legal gaming may be conducted in that county. If 20% or 1,500, whichever is less, of the registered voters in the county file a petition with the County Board of Supervisors within the 30-day period, an election on the issue must be held generally within 30 to 60 days after certification of the number of registered voters signing the petitions. The gaming authorities may deny a license for any location deemed unsuitable because of its proximity to a residential area, church, school, hospital, or playground, or because the location is difficult to police. (more…)

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Louisiana law now allows horse racing, a statewide lottery, video poker machines, and riverboat gambling. In 1992, a law was enacted that authorized a single, land-based casino in New Orleans. Before that, the Indian Gaming Commission had been created. At least one tribe plans to open a casino/resort complex in Louisiana. Others are expected to follow.

A casino may offer most types of games played for money or property except lottery, bingo, charitable games, raffles, electronic video bingo, pull tabs, cable television bingo, wagering on dog races, or wagering on any type of sports event. (more…)

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In 1989, the Iowa Legislature legalized casino gambling aboard historical river excursion boats that could ply the Mississippi River, the Missouri River, and other waterways located within Iowa. The Legislature also created the Iowa Racing and Gaming Commission. Previously, the Commission was known as the Iowa Racing Commission, and was responsible for the regulation of the parimutuel industry that included three greyhound tracks and one horse track.

Regulatory Agency

The Iowa Racing and Gaming Commission oversees parimutuel wagering and riverboat gaming. It is composed of five members appointed by the Governor and confirmed by the Senate. The term of office is three years. Iowa’s Governor appoints the members based on requirements for representation by region, political party, and gender. Iowa requires county-wide referenda to approve the docking of riverboats.

The commission is part of another state agency called the Department of Inspection and Appeals. The Department reports directly to the Governor. (more…)

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Indiana is one of the more recent entrants to riverboat gaming. Up to 11 licenses may be issued in counties contiguous to the Ohio River, Patoka Lake, and Lake Michigan.

Regulatory Agency

The Indiana Gaming Commission is in the executive branch and reports to the Governor. There are seven commissioners appointed by the Governor to serve staggered three-year terms. At least one member must have a background in law enforcement and criminal investigation, one must be a CPA with auditing experience, and one must be a lawyer in Indiana. Three of the members must be from a county contiguous to Lake Michigan, three from counties contiguous to the Ohio River, and the other must be from another county. No more than four can be from the same political party. The Indiana State Police are also involved because they conduct the background investigations for license applicants.

Tax Structure

The commission will collect a $3 per head admissions tax from each of the boats, payable on a daily basis. There is also a 20% state tax on the adjusted gross revenues.

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Illinois moved to legalize riverboat gambling shortly after seeing the success of Iowa’s riverboat gambling. Passage of the measure was helped by the fact that many Illinois residents journey to Iowa to use its casinos. The Illinois Riverboat Gambling Act was passed in January 1990, authorizing gaming to begin by April 1991.

The direct competition between Iowa and Illinois riverboats affected the law in Illinois. As originally proposed, Illinois was going to adopt the same limits on gambling as those in Iowa. When the bill was finally enacted, no wagering or loss limits were imposed in Illinois.

Regulatory Agency

The Illinois Gaming Board regulates riverboat gaming in Illinois. The board consists of five Governor-appointed and Senate-confirmed members. The Governor designates one of the Board members as chairman. The board members must have a “reasonable knowledge of the practice, procedure, and principles of gambling operations.” The board must include an attorney, a certified public accountant, and a person experienced in law enforcement. Each Board member must post a $25,000 bond, while earning $300 for each day of hearings or meetings. Board members serve staggered three-year terms.

The board hires its own staff. Agents of the board must be aboard the riverboats whenever gambling is taking place to certify revenue, conduct investigations, and listen to patron’s complaints. Agents are supplied by the Department of Revenue and the Department of State Police.

The board issues licenses, conducts hearings on civil violations, collects fees and taxes, assesses fines and penalties, and sets rules and regulations. The board can suspend, revoke, or restrict licenses, and impose fines for violations of the act or the board rules.

Initially, the board has received about 35 percent of its funding from the general fund. This is in response to the significant start-up costs. In the future, the board will be completely funded by the State Gaming Fund with plans to transfer any surplus to the Educational Assistance Fund. (more…)

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In 1989, limited stakes gaming was authorized to take place in the historic towns of Central City, Black Hawk, and Cripple Creek. Only blackjack, poker, and slot machines with a maximum single bet of five dollars is allowed.

Regulatory Agency

The Department of Revenue is the oversight agency for the Division of Gaming and the Colorado Limited Gaming Control Commission. The Division issues licenses and implements, regulates, and supervises the conduct of limited gaming.

The Governor appoints the five members of the commission who are subject to confirmation by the Senate. No more than three members may belong to the same political party and no more than one may be from the same congressional district. The commission must include a law enforcement officer, an attorney, a CPA or public accountant, a business person in a management-level position, and a registered voter who is not employed in a job similar to any of the other Commission members. All members except for the registered voter must have at least five years’ experience in their profession. The members’ terms are staggered. No member may serve more than two consecutive terms.

The commission is responsible for promulgating all rules and regulations related to gaming, establishing the gaming tax rate, delegating budgetary authority over the Division of Gaming, and allocating money to other state departments.

The commission establishes and collects fees from licensees, and adopts rules and regulations for overseeing gaming. The commission also enforces the rules and regulations. The commission also has a research responsibility and is required to conduct an ongoing investigation of limited gaming in Colorado. (more…)

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Nevada Has a Major Gambling Presence. The state issues about 500 casino licenses and regulates 1,800 slot licenses, 1,360,000 slot machines, and 5,300 table games. Gambling revenues to the state exceed $300 million, about 45 percent of state revenues. No other state has such a large share of state revenues or economic activity provided by the gaming industry.

Nevada is the oldest and largest legalized gaming center in the United States. Gaming was legalized in Nevada in 1931 in the middle of the Great Depression as a form of economic stimulant. The industry did not really begin to develop until after World War II. Since then, the Nevada gaming industry has survived the presence of organized crime, a U.S. Senate committee investigation, and the corresponding damage to its reputation.

Agency Roles Have Shifted Extensively Over Time. The authority to license and collect taxes from gaming operations has shifted among governing bodies four times in Nevada. In 1931, the legislation gave the local county sheriff offices the authority to license and tax casinos. Soon the state moved in and assumed a role because of the threat of federal prohibition of casinos. Extensive federal investigations had exposed extensive organized crime influence in the casinos. Local governments still exercise a concurrent right with the state over gaming regulation. (more…)

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The Commission’s primary mission is to regulate gaming activities on Indian lands for the purpose of shielding Indian tribes from organized crime and other corrupting influences; to ensure that Indian tribes are the primary beneficiaries of gaming revenue; and to assure that gaming is conducted fairly and honestly by both operators and players.

To achieve these goals, the Commission is authorized to conduct investigations; undertake enforcement actions, including the issuance of notices of violation, assessment of civil fines, and/or issuance of closure orders; conduct background investigations; conduct audits; and review and approve Tribal gaming ordinances.

In 1987, the Supreme Court in California v Cabazon Band of Mission Indians confirmed the authority of tribal governments to establish gaming operations independent of state regulation. The following year, Congress passed the Indian Gaming Regulatory Act (IGRA), which provided a regulatory framework for Indian gaming. IGRA offered states a voice in determining the scope and extent of tribal gaming by providing that the state in question must permit some form of the gaming and by requiring Tribal-State compacts for Class III gaming (casino gaming). Tribal regulatory authority over Class II gaming (bingo, pulltabs, and certain card games) was left to the tribes. IGRA further provided for general regulatory oversight at the federal level and created the National Indian Gaming Commission (Commission or NIGC). (more…)

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