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The sentence tests use of tense. The intended meaning is that after the referendum was passed the town started using casino tax for x purpose and this is still in force.
Therefore, A & E can be ruled out. In choices B "for the approving of" is unidiomatic.
Choice C can be eliminated for using "approved". Choice D is the final answer.
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Kritesh
Since 1993, when it passed a referendum approving casino gambling, the town of Riverside, Missouri, was using casino tax revenue to improve its streets, sewers, buildings, and other public works.

A. approving casino gambling, the town of Riverside, Missouri, was using
B. for the approving of casino gambling, the town of Riverside, Missouri,has used
C. approved casino gambling, the town of Riverside, Missouri, has used
D. approving casino gambling, the town of Riverside, Missouri, has used
E. approving casino gambling, the town of Riverside, Missouri, was to be using


As the sentence starts with since, present perfect is needed, A & E eliminated
We need a modifier after 'referendum' therefore "for the approving and "approved" are wrong

D is the correct answer
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Kritesh
Since 1993, when it passed a referendum approving casino gambling, the town of Riverside, Missouri, was using casino tax revenue to improve its streets, sewers, buildings, and other public works.

A. approving casino gambling, the town of Riverside, Missouri, was using
B. for the approving of casino gambling, the town of Riverside, Missouri,has used
C. approved casino gambling, the town of Riverside, Missouri, has used
D. approving casino gambling, the town of Riverside, Missouri, has used
E. approving casino gambling, the town of Riverside, Missouri, was to be using

First decision point is the verb tense, "Since" in the beginning of the sentence indicates that the action is still continuing in the present which means we need present perfect tense ==> Eliminate A&E

"approving Casino gambling" modifies "referendum" therefore it cannot be "for the approving" or " approved" as it needs -ing modifier B&C are eliminated

D is the correct answer
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Kritesh
Since 1993, when it passed a referendum approving casino gambling, the town of Riverside, Missouri, was using casino tax revenue to improve its streets, sewers, buildings, and other public works.

A. approving casino gambling, the town of Riverside, Missouri, was using
B. for the approving of casino gambling, the town of Riverside, Missouri,has used
C. approved casino gambling, the town of Riverside, Missouri, has used
D. approving casino gambling, the town of Riverside, Missouri, has used
E. approving casino gambling, the town of Riverside, Missouri, was to be using

KAPLAN OFFICIAL EXPLANATION:



D.

The sentence contains two different actions (passing the referendum and improving streets, sewers, and so on), so the verb tenses should indicate the correct timing of these actions. A referendum was passed at one point in time (1993), and improvements have been going on since. In the original structure, was doesn't indicate the continuation of action implied by since.

Has been would be the form to indicate action still continuing. Since (A), (B), and (E) do not include has been, they are incorrect. (C) incorrectly changes the active participle approving to the passive participle approved, so it is not the right choice. (D) fixes the verb tense error and does not introduce any new problems, so it is correct.
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