SIOUX FALLS, S.D. (KELO) — The old VFW building in Sioux Falls, located at 3601 S. Minnesota Ave. will soon be home to a medical marijuana dispensary, but that will not be the building’s only tenant.

The property, owned my M.G. Oil, will also be home to a video lottery casino.

The beer licenses for the casino are awaiting transfer to the address, pending approval by the Sioux Falls City Council at their May 16 meeting.

On the surface, this combo of video lottery and marijuana dispensary seems an odd pairing, until you realize it really isn’t a pairing at all.

Jamie Palmer, licensing specialist for the City of Sioux Falls discussed the location. “The main address of it is the dispensary,” Palmer recalled, “then I believe there’s a suite A, suite B and suite C that are the video lottery.”

This means that the dispensary and video lottery are separate entities, sharing only the property itself. This extends to licensing as well. While the video lottery establishment may receive the transferred beer licenses, those will only apply to those suites, not to the portion of the building housing the dispensary.

“As far as the alcohol licensing part of it,” added Palmer, “that building had liquor for years — they had video lottery there too.”

One thing that Palmer noted is that is not the addition of more video lottery to the city.

“They put a cap on the video lottery licenses that are associated with beer and wine,” Palmer said “Beer and wine licenses are normally unlimited, however if you want video lottery associated, that is capped right now.”

This, explains Palmer, is why the licenses will need to be transferred to the property.