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Judge: Casinos' Free Game Awards Must Be Taxed

March 20, 2014, 6:22 PM

Judge: Casinos' Free Game Awards Must Be Taxed
PIERRE, SD -

A South Dakota circuit judge has ruled that Deadwood casinos must pay taxes on their free promotional games.

First Gold, Mineral Palace and Four Aces had sued the Department of Revenue. The gaming establishments claimed promotional games should not be taxed. They said the games have no value because they are not sold.

Judge Mark Barnett sided with the state in the case on March 13. The judge ruled that any awards given out in free games have to be included when a casino calculates its profit. The tax is based off that gross adjusted revenue.

The ruling supports existing policies set by the Gaming Commission, part of the Revenue Department.

This article has been revised to reflect the following correction:
A misspelling was corrected in this story.

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