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(A) An application for any license shall be on the form prescribed by the Department of Revenue. All applications for retail licenses, except those cited in SDCL § 35-2-1.1 shall be submitted to the governing body. The municipality shall approve or disapprove the application based on the grounds that the applicant is a suitable person and that the proposed location is suitable.
(B) The governing body shall review the following factors in determining whether or not a video lottery machine shall be permitted in establishments issued an on-sale alcoholic beverage license pursuant to SDCL § 35-4-2(12) and (16):
(1) The number of current establishments currently licenses for video lottery;
(2) The proximity of the business to other establishments licensed for video lottery;
(3) The type of business and manner in which the applicant proposes to operate it;
(4) The location of the business in relation to other businesses, residential areas, or activities within the same general area;
(5) The extent to which minors frequent a business connected to the one proposed; and
(6) The effect the proposed business has on economic development.
(C) The governing body is to certify on each application filed with the Department for a license granted under § 113.15(A)(12) and (16) whether the business premises is authorized for video lottery machine placement.
(D) An existing video lottery license may not be denied renewal or transfer based upon the criteria set out in division (B). The lottery may issue a video lottery license to those establishments certified pursuant to this section. Notwithstanding the above provisions, the municipality may not restrict the number of alcoholic beverage licenses issued under § 113.15(A)(12) and (16) and certified for video lottery to a number less than those licensed as video lottery establishments on March 1, 1994.
(SDCL § 42-7A-64)