PIERRE | A November conversation between Rapid City Police Chief Karl Jegeris and two South Dakota Lottery Commission members has led to the commission's decision to hire a contractor to review security practices for video lottery establishments and the lottery’s office facilities.
The conversation and the decision to hire a contractor come in the wake of a period of less than half a year in which 12 Rapid City casinos were robbed.
The Lottery Commission on Thursday approved the preparing of a request for proposals for the review. Robyn Seibel, director of video lottery and security, said her preliminary inquiries showed an outside review could cost in the range of $40,000 to $50,000.
The decision comes after a meeting between Jegeris and commissioners Doyle Estes, of Hill City, and Chuck Turbiville, of Deadwood.
In a Thursday interview, Jegeris said both Sioux Falls and Rapid City, the state's two largest cities, had had casino robberies in the recent past. Jegeris said he met with Sioux Falls Police Chief Matt Burns, and the two agreed an approach to the Lottery Commission would be helpful.
Jegeris said he received "a very, very good response" from Estes and Turbiville.
The lottery has guidelines but doesn’t require security arrangements for the businesses, other than for the gambling machines and their communication networks.
Jegeris said the commission is in "a better position (than police agencies), they really can make sure there is consistent improvement" to try to thwart robbers.
Jegeris offered two recommendations for changes. First, he said, casinos have varying degrees of effective video surveillance, so improving that surveillance industry-wide would make robbers less likely to strike, or to get away with a robbery.
With his experience of the 12 casino robberies since summer, Jegeris said not all of the video has been of high quality. "Some have been problematic," he said, but added, "In some, we pointed out the problems to owners, and they made improvements."
Second, Jegeris recommended that casinos install what he called "delayed-time safes." Under current practices, a player who hits a jackpot can walk directly to the cashier and immediately be paid.
If, however, a casino safe had a 15-minute delay, a winner would approach the cashier, ask for the jackpot, then have to wait 15 minutes for the safe to open.
No robber would wait 15 minutes, Jegeris said.
One of the structural problems is that few of the casino buildings were designed as casinos, he said, so the builders didn't have security in mind at the time of construction.
At the Thursday commission meeting, Lottery Administrator Norm Lingle said staff employees would assemble the request for proposals and present it at the commission’s next meeting.
“The RFP is to find out if we should be doing some more?” Commissioner Jim Putnam, of Armour, asked.
“Correct,” Seibel replied.
Lingle said the goal is specific recommendations regarding the establishments and the lottery facilities.
“I think we would tread very carefully, before we did anything mandatory,” said Commissioner Bob Hartford, of Pierre, who formerly managed the Music and Vending Association that represented many video lottery businesspeople.
He said one size doesn’t fit all.
“I think what we’re heading towards is highly recommended rather than a mandate,” Hartford said.
Putnam said law officers have been asking questions. “Bring it back and let’s discuss it,” Putnam said.
Estes said that generally some security recommendations would be OK, but he would be willing to consider some actual requirements, based on the meeting with Jegeris.
“I would tell you, it’s a sensitive deal with them,” Estes said. “We’ve had quite a few rashes of robberies in Rapid City.”
Arrests have been made in six of the 12 Rapid City robberies since July, according to Police Department statistics.
Commissioner Brent Dykstra, of Fort Pierre, agreed with proceeding on the research but like Hartford doesn’t want to get carried away. “Tread lightly, I guess is what I’m saying,” Dykstra said.
Turbiville, the commission’s chairman and the mayor of Deadwood, called the RFP “an excellent suggestion.”
Jegeris said the owners of the casinos should be willing to take steps to improve security because when a robbery is in progress, their employees and their customers are in danger.
"It is a very high-risk situation," Jegeris said, adding that he hopes casino owners realize, "Safety is good for business."
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