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Gaming commission to rule on Deadwood casino
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Fark(Editor's Note: The following story was edited to accurately reflect the ruling for the 12 building proposal that was approved but that a variance for an opening between the buildings was rejected.)
The South Dakota Commission on Gaming is expected to rule next Tuesday on how many “buildings” it will permit for a proposed $35 million hotel and casino complex on the north side of Deadwood.
The project is being proposed by Deadwood Resorts, LLC, owned by Mike, Ryan and Rob Wordeman and by Dave Sweet of Sioux Falls.
The gaming commission last year approved a proposal for 12 buildings for the project, but rejected a request for a variance for an opening between two of the buildings because the opening was too large.
The project to be heard on Tuesday has been redesigned by the developers.
The complex would be built just off U.S. Highway 85 across from the Tatanka: Story of the Bison venue.
In September the developers offered a new proposal that would include 10 buildings in the complex, which would now be built as a mall. The commission took the proposal under advisement.
Under the proposal, the city of Deadwood would own the convention center, and the remainder of the complex would be owned by Deadwood Resorts LLC.
Under the state’s gambling laws, each building in a Deadwood casino can have up to 30 card tables or slot machines.
Gaming commission Attorney Michael Shaw said at the September gaming commission meeting that casino developers try to massage building codes and gambling rules to create multiple buildings under one roof.
Although many of the building designations are side-by-side rooms with passageways between them, some building designations have created a separate building out of a basement and one on the third floor of another casino.
Project architect Larry Crane of Sioux Falls said in September that the hotel and convention center would be considered a “covered mall,” with adjoining casino and restaurant operations being considered “anchor buildings” within the mall.
Crane said the anchor buildings should each be eligible for gambling devices under the plan. He said the success of the project depends upon each building having gambling inside.
But Sioux Falls architect and gaming commission adviser Mark Aspaas hedged at the September meeting about supporting the design.
Aspaas agreed that the design follows building codes and gaming commission guidelines, but he questioned whether the creative design was circumventing the spirit of the rules.
“This whole case boils down to whether the commission would agree (they) are separate buildings,” Aspaas said. “My opinion is I don’t think that they should. This is stretching the intent of limited gaming.”
Aspaas said the original rules applied to existing Deadwood buildings, which generally measured 25 feet by 100 feet. Thirty gaming devices could be comfortably arranged within that space. Those buildings also had historic elements that allowed the gaming commission to give variances to the owners who modified their structures. He said new buildings should be handled differently.
Mike Wordeman of Rapid City is the founder and former owner of Sodak Gaming. His company sold slot machines to tribal casinos and Deadwood gambling halls until 1999 when International Gaming Technology bought Sodak for $230 million.
Construction crews have started moving dirt on the project site, but are awaiting direction from the gaming commission. Sweet said the bulk of the design work is complete and negotiations are under way with contractors to begin construction.
The commission on Tuesday also will hold disciplinary hearings on three casino employees for alleged violations of gambling rules.
It also will hear proposed amendments to clarify existing Deadwood gambling rules, according to Gaming Commission executive secretary Larry Eliason.
The amendments deal with:
-- The definition of a tournament entry fee.
-- Statements about gambling or slot tournaments that are provided to the executive secretary.
-- Slot machine surveillance requirements.
Tuesday’s meeting begins at 9 a.m. at Deadwood City Hall.
Tim Velder, Lawrence County Journal, contributed to this story.
Contact Steve Miller at 394-8417 or steve.miller@rapidcityjournal.com
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