Governor hopes to decide whether to sign or veto smoking ban soon

Gov. Mike Rounds said Tuesday the potential loss of state revenue from gambling taxes will play no role in his decision on whether to sign a measure that would ban smoking in casinos and bars.

The governor said his staff is reviewing the language and details of the smoking ban passed by the South Dakota Legislature to make sure it is written correctly.

"Once they've given me their analysis of some language in the bill, I'll make a decision on it," Rounds said at a news conference held to discuss budget issues. "Hopefully, it won't be much longer."

Rounds said he and state lawmakers have known that revenue from Deadwood casinos and video lottery establishments will drop if smoking is banned there.

The governor's own budget office has estimated that if smoking is banned, the state's share of video lottery profits could fall 15-25 percent based on what has happened in other states that passed smoking bans. Video lottery revenue is projected at $111 million otherwise, so smoking could cause a revenue loss of $15 million or more.

"While that is most certainly a concern, it's not a concern that is holding up my decision at this time. That's not the issue," Rounds said of the gambling revenue.

"We've already recognized that if I sign the bill, there would be a significant loss in revenues. We know that," he said.

If the bill becomes law, it will mean smoking is banned in all public places except motel rooms and a limited number of cigar bars and smoke shops. Bars, Deadwood gaming halls and video lottery casinos are now exempt from the smoking ban, but the bill would outlaw smoking in those places.

Lawmakers said the smoking ban has strong public support. If the Legislature had not passed the measure, people would collect petition signatures to place it on the ballot for a statewide vote, they said.

Rounds said he will decide whether to sign the smoking ban after his staff answers his questions about how the bill is written.

"As I've told people, I don't like smoking. I don't like second-hand smoke," the governor said. "But I have to balance that with making darn sure the bill is written correctly and it doesn't have unintended consequences."