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The voice of central South Dakota since 1881

Monday, September 30, 2013 www.capjournal.com Volume 132, Issue No. 191 75¢C

BY BOB MERCERSTATE CAPITOL BUREAU

Past and current members of the South Dakota Lottery Commission and its administra-tors, as well as those involved in Deadwood casinos, have consis-tently held that the smoking ban South Dakota voters placed on alcohol establishments in 2010 would and did cut into gam-bling revenue at video lottery establishments and Deadwood casinos. But a new report shows that video lottery’s difficulties began years earlier.

Video lottery revenue began to stagnate in 2005-2006 and actually dropped in the two

years before the ban began. The ban accelerated a trend that was already under way. Video lot-tery’s share of South Dakota’s gambling market stood at 60.7 percent in 2002 and by 2012 had fallen to 42.2 percent.

During that same decade, doc-umented play at Deadwood casi-nos and estimated play at tribal casinos doubled. Their market shares grew: Deadwood from 19.4 percent to 25.6 percent; and tribal casinos from 16.4 percent to 26.5 percent.

Video lottery also lost some market share to other South Dakota Lottery products. Scratch tickets nearly doubled in sales and jackpot lotto sales

did double. Their shares like-wise went up: scratch tickets from 1.5 percent to 2.4 percent; and lotto tickets from 2.1 per-cent to 3.3 percent.

The report by Union Gaming Analytics, a Las Vegas-based company, was delivered last week to the South Dakota Lottery Commission. It is the deepest look at video lottery since the electronic poker, blackjack, keno and bingo games became legal in 1989.

Lottery officials wanted the study because they sought a detailed map of the current market, including competition from neighboring states, as well as a blueprint for possible

changes that can be made in the next few years to increase video lottery’s revenue to the state treasury and to the busi-nesses that own and manage the terminals.

“Every time I read it, I get more information,” commis-

sioner Roger Novotny of Fort Pierre said.

The main conclusion reached in the report by consultant Rich Baldwin calls for concentrat-ing on gaining back more of the South Dakota market. He notes that southeastern South Dakota faces a “formidable” new competitor when the Hard Rock Casino opens in Sioux City, Iowa.

Baldwin said the new “line-up” games, which are similar to casino slot machines, are pro-ducing substantially more rev-enue than the “legacy” termi-nals, most of them VLC 8700s,

Video lottery was losing market share before smoking ban

See LOTTERY, A8

This high-dynamic range photo taken on Sept. 12 shows a bridge near Bad River Road just out-side of Fort Pierre. To contribute to the Capital Journal’s ongoing photo series “The land,” send photos with information of when and where they were taken to yourphotos@capjournal.com. (Photo courtesy John Mitchell)

YOUR PHOTOSemail yourphotos@capjournal.com

The land

BAD RIVER BRIDGE

SIOUX FALLS, S.D. (AP) — South Dakota is letting the federal government set up its insurance mar-ketplace under President Barack Obama’s health insurance overhaul, but state officials and organiza-tions charged with getting the word out have been busy preparing for Tuesday’s start of open enrollment.

South Dakota is one of 36 states letting the feds run the health exchanges, and technical staff has been spending a lot of time try-ing to get state and federal com-puters talking to each other, said Eric Matt, a policy adviser to Gov. Dennis Daugaard.

Matt said unclear federal regula-tions, numerous last-minute chang-es, inadequate testing on the federal side and postponed deadlines have made that a challenge.

“We’ll see how it works,” he said. “I’d be shocked if it was glitch-free.”

The online marketplaces will be a place where people can buy health insurance as part of the effort to reduce the number of uninsured people.

BY LANCE NIXONLANCE.NIXON@CAPJOURNAL.COM

For Susan Pietrus of Pierre it’s just part of the way she shops for the dinner table – buying assorted veg-etables from vendors such as Sean and Shana Kruger at the Capital City Farmers Market in Pierre.

But for people at the South Dakota Department of Agriculture, it’s also a significant trend in the state as more and more consumers look to outlets such as this for local foods, and as more and more gardeners and small farmers step up to meet the demand.

Cropping up all overHow big is the trend?Consider that Capital City Farmers Market – held

from 9 a.m. to 1 p.m. Saturdays at the corner of Sioux Avenue and Coteau Street from May into October – was one of about 44 farmers markets in South Dakota in 2012.

A year later, that number is up by nearly 30 percent.“We have at least 57 farmers markets on our list

right now,” said Alison Kiesz, an Aberdeen-based agribusiness development specialist for the South Dakota Department of Agriculture. “We’ve seen

Cropping up all overNumber of farmers markets continues to grow in SD

Country Farmers Market, held on Saturdays at the Runnings parking lot in Pierre, is one of at least 13 new farmers markets that have started up across the state in the past year, bringing the total number in South Dakota to at least 57. (Lance Nixon/Capital Journal)

See MARKET, A8

State, navigators prep for health exchange launch

See INSURANCE, A8

BY ALYSSA SMALLALYSSA.SMALL@CAPJOURNAL.COM

The best advice Sara Olson can give is “Know your risk.”

That’s what the 32-year-old fourth-generation breast cancer survivor plans to say on Oct. 5 at the Making Strides Against Breast Cancer event at the South Dakota Visitor Center in Pierre. As the key-note speaker for the fourth annual event, Olson plans to tell the story of her family, and how knowing she carries the BRCA 1 gene muta-tion, which increases risk of breast and ovarian cancer in women and prostate cancer in men, helped her become a survivor.

“I was nursing at the time, and when I felt the lump I just knew this was not normal,” she said. She listed the events that followed: a call to the doctor, seeing the doctor, a biopsy and diagnosis before the next day was through. Other women aren’t always so lucky, she said.

It’s because of those other women that this year’s Making Strides event is emphasizing the impor-tance of mammograms and under-standing the hereditary aspects of cancer, said Charlene Lund with the American Cancer Society in Pierre.

“We really want this to be an edu-cational opportunity for women,” Lund said.

Olson has a substantial fam-ily history of breast cancer – six women in four generations. Both her mother and aunt participated in a Creighton University study that helped demystify the hereditary aspects of cancer, discovering the BRCA 1 and BRCA 2 gene muta-tions. They learned they were gene

carriers, and that knowledge is the reason for Olson’s swift treatment.

Women who are carriers of the gene mutation are at 87 percent risk of breast cancer and 44 percent risk of ovarian cancer, and men who are carriers are at 20 percent

risk of prostate cancer, according to BRAC Analysis by Myriad Genetic Laboratories.

By comparison, women who aren’t gene carriers are at 7 percent

SD to celebrate ‘making strides against breast cancer’ Oct. 5

This photo shows Sara, keynote speaker for the Making Strides Against Breast Cancer event, and Nathan Olson with their two daughters, Emily Frances, left, and Lillian Faith and their two dogs, Buddy and Herbie. (Courtesy photo)

If you goWHAT: Making Strides Against Breast Cancer WHEN: Oct. 5WHERE: Capitol Lake Visitor Center in Pierre9 a.m. – Registration10 a.m. – “It’s All in the Family” program11:30 a.m. – Riggs High Cheer and Dance team routineNoon – 5K walk through Hilger’s Gulch and around the Capitol complex begins. A light breakfast bu� et will be available before the walk and a lunch will follow the walk.

See STRIDES, A8

About 105,000 South Dakotans, or 13 percent of the state’s population, are uninsured, according to recent surveys.

“If the industry doesn’t change, we’re not going to get the share of income the state of South Dakota has gotten over the last 25 years,”

Commissioner Doyle Estes of Hill City

A HOMECOMING WINGovs rout the Huron

Tigers Friday in Pierre B1

REOPENINGRunnings cuts

ribbon to celebrate construction wrap-up A3