In South Dakota, the Flandreau Santee Sioux Tribe has received federal approval for a new Class III gaming compact and will now be permitted to operate up to 1,000 slots at its Royal River Casino And Hotel near the small town of Flandreau.
In return for the endorsement from the Bureau Of Indian Affairs, the tribe has agreed to pay Moody County $75,000 a year when 500 slots are in operation. The deal will see this amount raised to $150,000 when the number of devices hits 700 and progress to $250,000 for 850 slots before topping out at $350,000 when the full allocation of machines is reached.
“The compact increases the authorized number of gaming machines to 1,000 and establishes tribal contributions to local governments based on the number of gaming machines in operation,” read a statement from the Bureau Of Indian Affairs signed by Larry Roberts, the Acting Assistant Secretary For Indian Affairs for the United States Department Of The Interior. “In addition, the term of the compact is subject to review at ten-year intervals starting from the date of approval of this compact with an automatic ten-year renewal.”
The news comes only two months after the Flandreau Santee Sioux Tribe secured a $3.6 million loan via investment bank and brokerage firm Dougherty Funding to renovate and expand the Royal River Casino And Hotel, which is located some 43 miles north of Sioux Falls but only ten miles from the South Dakota border with Minnesota.