New $100 bets in Deadwood could take effect next week

Doris Haugen

Wednesday, Nov. 8, 2000 | 4:24 a.m.

SIOUX FALLS, S.D. - The state Gaming Commission could decide this week whether to review security and other rules in the wake of the new $100 bet limit for Deadwood casinos, the head of the panel said Wednesday.

Larry Eliason, the commission's executive secretary, said his staff is looking over the rules.

Voters on Tuesday approved the higher limit with 52 percent of voters in favor and 48 percent opposed.

The higher limit takes effect the day after the official canvass of votes, Chris Nelson, state election supervisor, said. The canvass is scheduled for next Tuesday and should be completed that day, he said.

The new limit will let Deadwood casinos compete with other states for gambling dollars and will spur economic development in the northern Black Hills town, supporters say.

"It will help us develop our product here," said Bill Walsh, owner of the Franklin Hotel in Deadwood.

Dozens of buildings in Deadwood's core still need preservation and restoration work, and profits from higher bet limits will help accomplish that, Walsh said.

The higher limits also may give new life to the $140 million Dunbar resort proposed by brothers Dan and Kevin Costner, said Walsh.

"I certainly think that this would help the Costner project, and that could attract significant interest in Deadwood, he said.

Officials from the Dunbar did not immediately return a phone call seeking comment Wednesday.

Opponents of the higher bet limit said it will draw high rollers who will make the Black Hills their playground and will box out average South Dakotans who no longer will be able to afford to vacation in the Hills.

Such an expansion isn't necessarily good for the state, said Kathleen Christopherson of Rapid City, who worked to defeat the $100 bet limit.

"I think this is going to be a green light for some of that development we think is going to ruin that part of the Hills," Christopherson said.

A lot of voters probably didn't realize the state's Indian casinos can match the $100 bets, providing an expansion of gambling across the state, she said.

John Packard, a manager at Fort Randall Casino near Wagner, said Indian casinos first must negotiate their gaming compacts with the state before higher limits can begin.

But he expects that process to go smoothly. The governor's office has already sent out letters saying the intention is to negotiate, Packard said.

"We feel that it will be a very successful negotiation with the governor," Packard said.

If all goes well, Packard thinks the Fort Randall Casino should be ready to offer games with higher bet limits by midsummer.

It makes sense that the state gaming commission might want to consider security and other issues because of the higher limits, Walsh said.

If the commission decides to review casino rules, they would need to be adopted through regular channels. In the meantime, nothing will bar casinos meeting existing rules from offering games with higher limits, said Eliason.

Melodee Nelson, who took the lead in the campaign for $100 bets, said the higher bet limit will allow Deadwood casinos to compete with other states for a new clientele.

"It's going to allow us to market to a whole new group of people," she said.

"And contrary to what our opponents said, it's not about greed. It's about wanting to do good for our employees, to be competitive and give our customers what they want."