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GULCH GAMING, INC. v. STATE OF S.D.

No. CIV. 91-3023.

781 F.Supp. 621 (1991)

GULCH GAMING, INC., Plaintiff, v. STATE OF SOUTH DAKOTA; Mark W. Barnett, in his official capacity as Attorney General of South Dakota; Donald Gromer, in his official capacity as Executive Secretary of the South Dakota Commission on Gaming; and Charles Lien, Karen Crew, Karl Fischer, Evans Nord, and Kristi Wagner, in their official capacities as Members of the South Dakota Commission on Gaming.

United States District Court, D. South Dakota.

December 20, 1991.

Attorney(s) appearing for the Case

Timothy J. Dougherty, Dougherty & Dougherty, Steven Sanford, Cadwell, Sanford & Deibert, Sioux Falls, S.D., for plaintiff.

Thomas C. Adam, May, Adam, Gerdes & Thompson, Pierre, S.D., for defendant.

Thomas H. Harmon, Tieszen Law Office, Pierre, S.D., for Black Hills Novelty Co., amicus curiae.

MEMORANDUM OPINION

DONALD J. PORTER, District Judge.

INTRODUCTION

Plaintiff Gulch Gaming, Inc. challenges the constitutionality of a portion of the South Dakota gaming statute. Plaintiff was denied an operator's license to operate slot machines and gaming tables in Deadwood, South Dakota because the majority ownership interest in the corporation is held by nonresidents of South Dakota. The relevant statutory provision requires:

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