South Dakota gambling town dreams about overtaking the Las Vegas Strip

Joe Kafka

Thursday, April 26, 2001 | 10:43 a.m.

DEADWOOD, S.D. -- This historic Black Hills gambling town could one day have a six-mile extension of its casinos to Interstate 90, or a new stretch longer than the 3.5-mile Las Vegas Strip.

Although it does not seem probable and would be highly political, it is possible. And it would be easier than people thought.

First, it would take city annexation of the area, which has been discussed. Second, it would require a majority vote in both chambers of the South Dakota Legislature -- not a constitutional amendment.

"Never say never about any of this stuff," said Harry Christianson of Rapid City, a shareholder in Full House Inc., which owns the Gold Dust casino complex on Deadwood's Main Street and the nearby Holiday Inn Express. "I don't think there's anything set in cement unless it's in the constitution."

Surprisingly, many people have assumed the gambling boundaries of Deadwood are locked into the state constitution.

"It's not in the constitution," Christianson said. "I was shocked."

"I'm a lawyer, and I labored under that error. I honestly thought it was there," Christianson said after discovering that the definition of city limits is in state law.

While voters changed the constitution in 1988 to allow limited-stakes gambling in Deadwood, the nuts and bolts of gambling operations here are controlled by provisions later placed in state laws and regulations.

For gambling purposes, Deadwood boundaries are defined in a 1989 law as those city limits that existed on Jan. 1 of that year.

While it takes a majority in a statewide election to amend the constitution, a law passed by the Legislature can be changed with 18 state Senate votes and 36 House votes.

That would be no easy feat since gambling opponents would complain loudly. But it's not impossible.

"There's nothing sacred," said Bill Walsh, owner and general manager of the Franklin Hotel & Motor Inn.

"When I had a liquor license in 1980 and there were only seven liquor licenses in town, I thought that was in stone. All it took was an act of the Legislature to immediately increase it by another 12 liquor licenses."

Deadwood officials have considered annexing the six-mile strip along Highway 85 to Interstate 90 to control development in that area of Lawrence County. But the plans are on hold because of the expense of extending utilities to the rural area.

Mayor Barbara Allen, who steps down May 7 after six years in office, said local officials and most residents would oppose a casino strip to the interstate.

"When city government is against it, and your population is against it, it's not going to happen," she said.

Although she would not name them, Allen said many legislators have told her that they, too, would oppose expansion of city limits for gambling purposes.

"There is no chance of the Legislature ever doing it," the mayor insisted.

However, former state legislator Kay Jorgensen of Spearfish is not so sure.

"Never is way too long," she said. "Given the right set of circumstances, whatever they might be, it certainly could happen. It's conceivable in my mind that the Legislature could change it.

"I don't think it's very likely, but who knows what will happen if the economics change."

Jorgensen, who also was surprised to learn that gambling boundaries are not in the constitution, said she would have no problem with extending the casino district. Deadwood gambling has been well-regulated by the state Gaming Commission, she said.

"I've been real proud of how things have been handled here," Jorgensen said.

If casinos ever are allowed along the stretch, the historic downtown area would suffer, Walsh said. Much historic preservation remains to be done, he added.

"What we are trying to do is build our product, which is an old, historic, preserved Western mining town."

Christianson agreed downtown would pinched if casinos are built nearer to the interstate. "It would detract from existing casinos. It would move the center of gravity out of Deadwood and toward the interstate."

But Christianson said legislators could hardly ignore a request to extend Deadwood gambling boundaries if someone came up with plans to dump $100 million or $200 million into a casino complex along the now-rural stretch of Highway 85.

And the Full House Inc. partner said even that company would have to consider building a casino closer to the interstate if gambling boundaries are expanded.

"Can't rule it out," he said. "If the city annexes it, they annex it. But I think it's subjective to changing the whole atmosphere in Deadwood."