SD gambling town considers adding roulette, craps

PIERRE, S.D. — Deadwood casino operators have talked about adding craps and roulette to the card games and slots they have offered for two decades, but they are not yet ready to ask state voters for permission, gambling officials said Wednesday.

“We’ve had discussions, but nothing definitive,” said Ken Gienger, president of the Deadwood Gaming Association and general manager of the Celebrity Hotel.

Deadwood is focusing now on celebrating the 20th anniversary of legalized gambling in the historic Black Hills town where Wild Bill Hickok was gunned down in 1876. The industry has brought 2,000 jobs, millions of dollars in profits, and money for extensive renovations to the buildings and infrastructure in the town nestled in a canyon between pine-covered mountains.

However, Deadwood has to keep an eye on its competition, which includes Colorado casinos that were allowed to add craps and roulette in July, Gienger said.

State Sen. Tom Nelson, R-Lead, a member of the committee that won approval for legalized gambling two decades ago, said the gambling industry may ask to add craps and roulette in Deadwood. Supporters probably won’t push the idea in next year’s legislative session, however, because lawmakers will work mostly on balancing the state budget while revenues are declining, he said.

The South Dakota Constitution limits Deadwood casinos to slot machines and card games, which include blackjack and poker, so any change to allow craps and roulette would have to be approved by voters statewide.

“They might ask the Legislature to put it on the general election ballot, but I think that might be a little premature,” said Nelson, general manager of the Gold Dust casino and mayor of the nearby city of Lead.

Nelson said he doubts any effort will be made to change the bet limit, which started at $5 in 1989 and was raised to $100 in 2000.

Meanwhile, Deadwood is working on attracting more visitors by offering music acts and other entertainment, Nelson said. Projects under way include construction of a convention center and the conversion of an old building into an entertainment venue, which would allow events during the colder months. The town now has music concerts outdoors in the summer.

“I think that’s kind of the next evolution, toward an even more broad based entertainment venue,” Nelson said.

After voters approved a constitutional change, legalized gambling began in Deadwood on Nov. 1, 1989, when an actor portraying Hickok, accompanied by a woman portraying Calamity Jane, shot a revolver into the air.

Before gambling was legalized, buildings were crumbling and businesses were dying. The buildings started to sell for far more than anyone had imagined, and most of Main Street was converted to casinos. Actor Kevin Costner bought a casino after making his hit movie, “Dances with Wolves,” in South Dakota.

Through June 30, 2008, the last date for which complete figures are available, gamblers had bet $11.6 billion in the Deadwood casinos. They won back nearly $10.6 billion, which left more than $1 billion in gross revenue for the casinos, said Larry Eliason, executive director of the South Dakota Gaming Commission.

The casinos over 19 years paid $191.7 million in taxes and fees. After the Gaming Commission used $20 million for its operating expenses in regulating the casinos, more than $171 million was distributed to the state and local governments.

The city of Deadwood got more than $116 million, which has been used to improve the infrastructure, including the water system needed to prevent the fires that previously hit the town. The state treasury got $15 million for general purposes, and South Dakota’s tourism promotion efforts got $27.7 million.

While Lawrence County got $8.2 million, local school districts got $1.4 million and other cities in the county got $1.4 million. Another $1.4 million went to support historic preservation efforts.

In August, Gaming Commission reports indicated that 136 Deadwood casinos operated about 3,500 slots machines and about 100 card tables. Approximately 1,500 people were licensed as dealers and other casino employees.

Gienger said Deadwood casinos pay $40 million a year in salaries to about 2,000 employees, including 500 waiters and others who do not have to be licensed. That works out to an average salary of $20,000 a year, he said.

Taxes have also have supported grants and loans that help people renovate the outside of their historic homes, Gienger said.

Nelson said Deadwood used to attract visitors between Memorial Day and Labor Day and sometimes for ski season if enough snow fell, but the addition of gambling has brought people to town year-round.

“It’s been a fun ride,” Nelson said.