wood needs to provide the products our customers ask us for. It will give us more marketing opportunities to promote Deadwood at times that have been historically slower for Deadwood,” Rodman said. “As the Oxford Economics study alludes, sports wagering could bring an overall increase of approximately 15% to Deadwood’s gaming numbers.” Gambling in Deadwood brings in tax revenue that gets distributed across the state through the general fund and finances grants for historic preservation. The state assesses a 9% tax on Deadwood gaming revenues. Casinos are also charged a $2,000 fee per device or table. From those revenues, 1% goes to the state general fund, 40% to the state Department of Tourism, 10% to Lawrence County, and the rest to the South Dakota Gaming Association until its expenses are met. Following Deadwood’s revenue, excess funds are distributed to cities and school districts throughout Lawrence County. Gaming has been good for Deadwood’s economy, transforming the town with a failing infrastructure in the ‘80s into a premier tourist destination today, with $1.1 billion wagered in 2020 in the 26 casinos lining the streets.
Destination Deadwood©
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Spring • Summer 2021
In 2014, 57% of South Dakota voters approved an amendment to the state’s constitution allowing keno, craps, and roulette be added to Deadwood’s gaming lineup. Those games were placed on the casino floors on July 1, 2015, and resulted in about 10% of the table revenue – about $10 million. Rodman believes Deadwood would see similar gains with the addition of sports betting, as well as additional spending. “This would result in more hotel stays, retail sales, and food and beverage sales. We see the traditionally off-season time periods positively impacted by events like the Super Bowl, March Madness, and the World Series,” Rodman said. “Deadwood needs to continue to grow as a visitor destination that has an enormous impact on the Northern Hills and all of South Dakota’s tourism industry. Betting on sporting events gives us just one more option to attract additional visitors.”
Neighboring states like Iowa rolled out sports betting after the U.S. Supreme Court paved the way for legal wagering three years ago. “South Dakotans, like the rest of Americans, want to wager on sporting events in a safe, legal, regulated environment and Deadwood will provide them that opportunity,” Rodman added.
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