Lucky Lady's, video lottery casino in crime-riddled Sioux Falls neighborhood, likely to close or relocate

Threats of renewal rejection follow years of nuisance, violence reports at what's known as the Mercato Block along west 11th Street

(The Dakota Scout)

A Sioux Falls video lottery casino that has operated for years in one of the worst neighborhoods in the city is losing its ability to sell beer.

And because state law requires an establishment have an alcohol license to offer video lottery, Lucky Lady’s Casino will soon have to close its doors or relocate from its 601 W. 11th Street location.

The Sioux Falls City Council Tuesday was poised to reject renewal of a pair of beer and wine permits for the casino, one of dozens of video lottery establishments owned and operated in South Dakota by M.G. Oil Company.

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However, M.G. Oil withdrew its renewal request at the last hour, avoiding a formal rejection and leaving itself the option of transferring the licenses to a new location before they expire in June.

While Lucky Lady’s Casino has operated at what’s known as the Mercato Block for years, councilors have indicated in recent weeks they will not issue any renewals for alcohol licenses there, citing high crime rates in the area. The block has been the source of multiple shootings, stabbings and assaults over the years, including more than 2,200 crime reports filed by police within 500 feet of the property in the last three years.

(Google Maps)

Troy Erickson, president of M.G. Oil Company, did not return multiple calls seeking comment Tuesday.

Norman Drake, a partner in Murray Properties, which leases the property to M.G. Oil, declined to comment when contacted by The Dakota Scout, saying he was out of country and not familiar with the details surrounding M.G. Oil’s alcohol licenses.