Deadwood Gaming, Betting on a Bright Future

Photo courtesy of South Dakota Tourism

DEADWOOD GAMING Betting on a Bright Future

by Emily Pitz

Just a few decades ago, Deadwood was a near ghosttown with boarded up buildings and dusty remnants ofthe Wild West. People would stop to see where Wild BillHickok, Calamity Jane and Seth Bullock became famous,but would then be on their way. The fall of 1989 broughta shift in Deadwood’s history with legalized gaming. Noone imagined just how revolutionary introducinggambling would be for the town. Atthe time, it was only the third venue in thecountry to permit legal gambling, along withNevada and Atlantic City, New Jersey.

Today, Deadwood gaming is a major economic force in the northern Black Hills, generating nearly $100 million in gaming revenues. The gaming industry has created 1175 jobs for Deadwood with employees earning over $46,000,000 in wages,benefits and tips. While millions of dollars of tax revenue are invested back into revitalizing and providing about one-third of the state tourism budget annually. Gaming is also an important partner with state tourism, driving visitation to the northern Black Hills.

Mike Rodman, Deadwood Gaming

Mike Rodman has been a pillar of Deadwood since the beginning of legalized gambling. He started as a partner of Silverado Gaming Complex, then Four Aces Casino, and most recently as the Executive Director of the Deadwood Gaming Association.In this role he advocates for Deadwood casinos and is the voice of the gaming industry in the state legislature, local government and media. Rodman also helped to create the business improvement district, BID 8, which includes 13 Deadwood hotel owners. BID 8’s purpose is to improve Deadwood by: 1) supporting the Main Street Initiative, which includes the downtown project,Outlaw Square 2) generating new and additional entertainment events 3) developing and expanding recreational tourism and 4)promoting Deadwood as a tourist destination.

According to Rodman, last year Deadwood gaming revenue wasup, and the first two months of 2019 were indicative of a very stablemarket. But in this industry, continued growth is always the goal.Rodman points out integrated gaming resorts are an importantelement of keeping Deadwood competitive. The additions of craps,roulette, keno and increased betting limits in recent years has helpedto generate momentum. The next step in their plan for positioningDeadwood as a gaming destination is by allowing sports betting.Last May, the U.S. Supreme Court overruled the Professional andAmateur Sports Protection Act (PASPA), a federal gambling statutethat prohibited legalized sports betting in many U.S. states. This wasa major breakthrough and will now allow each state to determineand establish its own regulated sports betting laws. Ten states arealready allowing it, but there is still work to be done to bring sportsbetting to Deadwood.

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The Deadwood Gaming Association believes the people of South Dakota should have the opportunity to decide whether or not they want sports wagering in Deadwood. The first phase was to draft a constitutional amendment and present it to the South Dakota State Legislature to allow wagering on sports events as a type of gaming in Deadwood. The amendment was successful in the Senate but fell short of the needed votes on the floor of the House. Disappointment with the lack of support by legislators has not deterred those who are hoping to bring sports betting to town. Instead, they are using this time to regroup and initiate an effort to achieve a ballot referendum by gathering 33,000+ required signatures before November. This will allow voters to decide for themselves on the matter. “We believe South Dakota voters are in favor of bringing sports betting to Deadwood,” says Rodman. The Deadwood Gaming Association strives to always listen to their customers and provide what they are asking for. Rodman reports preliminary polling supports adding the sports betting amendment to the 2020 ballot. If all goes as hoped and the amendment is added to the ballot and then voted in, rules will also have to be approved by legislation, making July 1st, 2021, the earliest legal sports betting would be up and running in Deadwood.

If you’ve driven through Deadwood lately, you’ve noticed the efforts of the Main Street Initiative. The new welcome center on lower Main Street and construction on Outlaw Square, across from Franklin Hotel are just two of the visible endeavors. “This is gaming dollars at work. Reviving Deadwood and setting it up for the future,” explains Rodman. Deadwood Gaming Association also recognizes you might notice a few closed storefronts as you stroll down

Sports Betting in the United States. The map displays states where sports betting is currently legal, where it has been approved but is not yet operational, where sports betting legislation has been introduced and is under consideration, and where sports betting legislation is reported to be forthcoming.

Main Street. Rodman acknowledges this and explains tourism is always evolving. Currently more retail offerings are popping up and he states shopping is a component of shaping Deadwood as an integrated travel destination experience. He’s also happy to see new hotels, like Tru by Hilton and he sees a need for even more hotels in Deadwood.

As Deadwood looks back over the past 30 years, it is easy to recognize the prosperity gaming has brought to the area. It has created opportunities for the town to not only capitalize on its history, but offer employment and grow tourism in South Dakota. The town is considered a must-see destination in the Black Hills, says Rodman. “We’re excited to see what the future holds for Deadwood and we hope sports betting will soon be a part of visitors’ experience.”

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Photo courtesy of South Dakota Tourism