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Historic Deadwood Celebrates 20th Anniversary of Gaming

In 1989, Deadwood launched a long-shot experiment to see if legalized gambling could save the towns economy and preserve its heritage.

Twenty years and $12 billion in bets later, the answer is an overwhelming yes. To mark the 20^th anniversary of legalized gaming, Deadwood is hosting a series of events that will celebrate this great venture.

"So much has happened to Deadwood in the past 20 years; this town has literally reinvented itself," said George Milos, executive director of the Deadwood Chamber of Commerce and Convention & Visitors Bureau. "We have a lot to celebrate."

The 20^th Anniversary commemoration will carry on during regular Deadwood events such as the Wild Bill Days in June, the Days of 76 Rodeo and Parades in July and Kool Deadwood Nights in August. The celebration culminates in a week-long event beginning Nov. 1, 2009 -- 20 years to the day after gaming came to Deadwood.

Among the events that week will be a reenactment of the Main Street ceremony that kicked off gaming, a celebrity poker tournament and a formal banquet to honor the people who two decades ago led the statewide effort to bring slot machines, blackjack and poker to Deadwood. There will also be educational programs focusing on the history and preservation of Deadwood.

During the 1980s, the city seemed to be dying a slow death. Its economic base -- mining, timber, tourism and retail trade -- was not enough to support the preservation of its historic buildings and rich heritage.  Some structures suffered from demolition by neglect. Others, such as the Syndicate Block, simply burned down. The citys water system didnt produce enough pressure to effectively fight the fire.

The December 1987 Syndicate Block fire was part of the impetus to find a way to protect and preserve Deadwoods heritage.  A group of city officials and business people, called the Deadwood You Bet Committee, was already at work on a plan to bring gaming to Deadwood.

It was a long shot. At the time, casino-style gambling was limited to the state of Nevada and Atlantic City, N.J.

But during the November 1988 general election, voters across the state overwhelmingly agreed that Deadwoods unique character was worth saving, and casino gaming could save it. The state approved a constitutional amendment to allow limited stakes gambling in Deadwood.

"We werent sure what to expect," said Tom Blair, who was mayor of Deadwood and one of the original seven members of the Deadwood You Bet Committee. At the time, an economist predicted that gaming would raise about $100,000 in the first year. "That was a big number for most of us," he said.

In fact, bettors had wagered a stunning $145 million in the first eight months of gaming, bringing in $13.9 million in revenue.

Since then, gaming has transformed Deadwood and South Dakotas economy. Thousands of jobs have been created as a result of gaming. And as of February 2009, state numbers show that some $1.1 billion in revenue has been raised and $88.6 million in taxes have gone to state government and local government, tourism promotion and historic preservation efforts across South Dakota.

"The money gaming would bring in was in the back of our minds, but it wasnt the driving factor at all. It really was historic preservation," Blair said. "And I think we can all sit back and say weve done a pretty good job. There have certainly been some bumps in the road, but in 20 years I dont think any of us could have improved on what has happened to Deadwood."

Meanwhile, Deadwoods success touched off a revolution in small-stakes, recreational gaming in the United States. Riverboats in Iowa, mining towns in Colorado, the Gulf Coast of Mississippi and tribal casinos across North America now offer similar types of games.