The lobby of the hotel at the Royal River Casino in Flandreau, South Dakota. Photo: Flandreau Santee Sioux Tribe

Compacts | Litigation
Flandreau Santee Sioux Tribe challenges tax on casino contractors


The Flandreau Santee Sioux Tribe is suing the state of South Dakota in connection with a casino expansion project.

The lawsuit accuses the state of illegally imposing an excise tax on a contractor that's working on the project at the Royal River Casino. The firm has made two payments totaling around $5,700 in protest, according to letters filed in federal court.

“The economic burden and the intrusion into tribal sovereignty interfere and are incompatible with the federal and tribal interests in promoting tribal self-government, self-sufficiency and economic development,” the April 21 complaint states. The tribe reimbursed the contractor so it's feeling the burden of the tax, according to the lawsuit.

The tribe is expanding the casino to make room for more slot machines. A new Class III gaming compact authorizes up to 1,000 slot machines, or double the number in a prior agreement.

Read More on the Story:
Flandreau tribe, state, clash in court (The Sioux Falls Argus Leader 5/6)

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