Iowa Casino Would Financially Hurt South Dakota, Study Says

Lyon County, Iowa may soon get their new casino, and if they do, it could be a severe blow to neighboring South Dakota. An independent study reveals that the casino would hurt an already troubled economy in South Dakota.

The casino, according to a KlasRobinson QED study, would take around $55 million out of the South Dakota economy. Residents would spend their money at the casino and resort, leaving less money to be circulating around in South Dakota.

"This is not uncommon for a casino to be built near a state border and it drain money from the neighboring state," said observer Mark Hemel, "what South Dakota may have to do is give residents casino gambling options in their own state."

The competition for consumer dollars is strong around the country. With the recession hurting business, states are doing anything they can to try and bring revenue in for state budgets. In many states, the plan has included expanding casino gambling options.

In the Northeast, there is a major battle taking place for gambling revenue. Connecticut, Pennsylvania, New York, and New Jersey are all trying to corner the casino gambling market. The two major Connecticut tribal casinos are attempting to take what is left of Atlantic City customers.

Sioux Falls would be the main contributor to an Iowa casino according to the study. This is the third study that has been done on the casino issue and all three have came to the same conclusion, a casino in Iowa would be a drain on South Dakota.

July 26, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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