Deadwood celebrates 10th anniversary of legalized gambling

Chet Brokaw

Sunday, Oct. 31, 1999 | 9:46 a.m.

DEADWOOD, S.D. - Before gambling was legalized a decade ago, buildings were crumbling and businesses were slowly dying in the northern Black Hills town where Wild Bill Hickok was gunned down in 1876.

Today, more than 90 casinos line Main Street and the rest of Deadwood's business district. Historic buildings have been restored, and crowds of tourists now stroll along streets that were once nearly empty.

"It's a different town now," says Vern Sailer, a retired sheet-metal worker who has lived in Deadwood for 36 years. "There's some good and some bad, no matter how you look at it."

Sailer and others agree the legalization of slot machines, blackjack and poker have brought money and jobs to the city, and Deadwood's share of taxes and fees has helped preserve old buildings and fix up the streets, water system and other services.

But most retail stores have disappeared, replaced by casinos.

"If you've got to do any shopping, you've got to go out of town," Sailer says.

When a few business owners formed a group to promote the legalization of gambling in the 1980s, they thought the creation of a few casinos would help revitalize the city. They never expected gambling to grow so quickly.

Bill Walsh, co-owner and operator of the Franklin Hotel, says he expected the return of saloon card games that were a part of Deadwood's past.

"It completely blew my mind as to what happened that first year or two when the real estate agents moved in and turned every retail business into a gaming hall," Walsh says.

Walsh and other early promoters of gambling wanted to "make Deadwood fun again," and legalized gambling has done that, he says. New restaurants, concerts and other events offer a lot of entertainment, he says.

"It's a great little playground that South Dakotans have," Walsh says.

Voters statewide approved a constitutional amendment in 1988 to legalize gambling in Deadwood. The casinos have had a $5 bet limit since legal gambling started.

Gambling started on Nov. 1, 1989, and 45 casinos were operating by the following June. Since then, the number of casinos has fluctuated from year to year, but has been at about 90 for several years. The casinos have had a $5 bet limit since legal gambling started.

In the first few years after gambling started, Main Street buildings that once could not be sold were being snapped up at high prices.

"We were really in a down cycle in 1989 when gambling was approved," says Mayor Barbara Allen, a lifelong resident of Deadwood. "We were dying. We were down and out."

But JoDean Joy of Miller, a persistent critic of gambling, says Deadwood never should have embraced gambling. She voted for the 1988 measure because she thought a few places would offer card games and raise money to restore historic buildings.

"They've restored the infrastructure, but they've lost their soul," Joy says.

Gambling addiction ruins many people's lives, so Deadwood instead should have sought to revive itself by offering attractions suitable for families, she says.

"Perhaps because of what it has done to a lot of families from the addiction it caused, it would have been better if Deadwood had died," Joy says.

The state Gaming Commission reports that gamblers have wagered more than $4.1 billion in the past decade. Casinos have earned gross revenues of more than $400 million, and taxes have provided money to the state, county and city.

The constitutional amendment provided that the city's share was to be used for historic preservation, and Deadwood so far has received about $54 million from taxes and fees.

Gov. Bill Janklow earlier this year proposed a plan to have Deadwood share some of its gambling revenue with neighboring communities. He said the city had used gambling money for projects and services that had nothing to do with historic preservation.

The governor withdrew his proposal after starting discussions on the issue with Deadwood officials.

Allen says all the city's projects have involved historic preservation.

To protect against fire in downtown Deadwood, where there is no space between most buildings, the city required all buildings to install fire sprinklers, the mayor says. New water lines were needed to make sure fires could be fought, and it made sense to rebuild the sewers and other services when the streets were torn up, she said.

"Our worst enemy in Deadwood was fire," Allen says. "Our first priority was to see that our buildings and our historical district were fire safe."

In fact, Deadwood has been ravaged by fire in the past.

The city has rebuilt its downtown streets with brick, and it has restored some old public buildings.

A consultant has said Deadwood needs to build on its Wild West theme, and it particularly needs to provide more retail shopping.

Allen says the city will not seek general retail stores, but instead will encourage specialty stores and family attractions. Visitors like to take home mementos such as copies of historic documents, she says.

"A big majority of our visitors come for the history, the history of the Black Hills," the mayor says.

Deadwood sprung up in a canyon soon after gold was discovered in the Black Hills in the 1870s. It attracted Hickok, Calamity Jane and a host of other legendary characters.

Hickok was shot in the back on Aug. 2, 1876, while playing cards. Actors now re-enact the shooting and the subsequent trial of Jack McCall for murder.

Walsh says Deadwood can attract more visitors if it boosts opportunities for exploring the frontier past. "When they get to Deadwood, they expect the Old West."

Slightly less than half the casinos made profits last year, Walsh says, and overall gambling revenues have not grown much in recent years.

In the decade since gambling began in Deadwood, competition has arisen in many surrounding states and on Indian reservations. A federal law generally allows tribes to offer whatever kinds of gambling are permitted elsewhere in a state.

The city now has built a parking ramp and other facilities, and the proposed renovation of an old building into a convention center could help draw more visitors in the colder months, Walsh says. From November through May, gambling halls are really busy only on Saturday nights, he says.

Legalized gambling has been a success so far because it has revived Deadwood and restored its old buildings, Walsh says. His hotel is 97 years old, and he figures it now can last another 97.

"Overall, this is really a wonderful, wonderful place," he says.