Bar owners could lose their video gaming licenses and face $10,000 fines if they host live poker games or tournaments, the South Dakota Lottery has warned.
Lottery Executive Director Clint Harris sent letters to more than 1,400 bar owners across the state last month, saying the table games violated not only state law, but also the state contracts that allow video lottery machines in their establishments.
Lottery officials sent the letters after receiving complaints from bar owners and citizens about the growing number of poker tournaments held in bars.
"Rather than running around looking for them (the violators), we sent a letter outlining that these types of activities are illegal and could jeopardize their licensing," Harris said.
Some bar managers and poker players say lottery officials are really worried that the games could cut into video poker revenue. They ask why officials weren't also concerned about NCAA Final Four and Super Bowl pools or dart and pool tournaments.
"I don't like the fact that this is big money taking it away from the little man," said Matt Metli, who plays poker Tuesday nights at The Pocket in Sioux Falls. "There are a few blue-collar people who are losing money and (having) a good time."
advertisement
Party Poker
The biggest online poker room with thousands of players.
Choose one of the following games:
Texas Holdem Poker, Omaha Poker, Omaha Hi,
Seven Card Stud, Stud 8 or Better.
Receive a 20% bonus of your first deposit up to a $100!!!
Party Poker
Last year, the state's share of video lottery income topped $106 million, which is a 50-percent take on the 8,300 machines' income. Bar owners can either own gaming machines or lease them from private companies.
Laws against table gaming have been on the books since 1939, and Harris says the South Dakota Lottery was simply trying to point out that games of chance are illegal in bars. If owners want to be a video lottery establishment, they have to abide by the rules, he said.
"We're not trying to be heavy-handed," Harris said. "We're trying to point out what is already the rule."
Television shows such as the Travel Channel's "World Poker Tour" have helped bring live poker into the spotlight, and some bar owners saw a good financial opportunity in that.
"It's kind of a craze," said Terry Narum, owner of The Pocket. "I wanted to jump on the bandwagon and take advantage of it."
The Pocket's games attracted 35 to 40 players a night and sign-up sheets would regularly fill a week before the tournament, Narum said. Entry fees were $20 on Tuesdays and $30 on Saturdays, with 10 percent paying the dealer and the remaining going to the top two finishers, he said.
"When we first started, we attracted a lot of players who went to (tribal) casinos," Narum said. "By the end, we had everyone playing."
Lottery officials said that since the mailing, they haven't received any additional complaints about the poker tournaments.
Bar owners and players said that poker has disappeared from plain view, although some maintained the games are still being held in secret at some establishments.
Source: Associated Press
