On November 1, 1989, gambling was officially legalized in Deadwood, South Dakota. As the casinos reopened, gamblers placed approximately $145 million in bets during the first eight months legalized gambling. Although there was an early snowfall which made driving conditions difficult, Deadwood’s Main Street was filled with tourists looking to win big in the newly-opened saloons.
Gambling was legalized in Deadwood in an effort to diversify the town’s economy. The largest employer was the nearby Homestake Gold Mine, which provided a few hundred jobs to area residents. Tourism was Deadwood’s next largest economic contributor, which ebbed and flowed alongside the seasons.
Canvassers sought enough signatures from registered voters across the state to allow a state constitutional amendment to approve limited gambling in Deadwood on the November 1988 ballot. South Dakota voters approved the amendment by a wide margin. The state legislature drafted and passed the requisite legislation to approve gambling during the following legislative session early in 1989. Finally, the last step required Deadwood residents to approve gambling in a town election
Prior to the legalization in 1989, gambling had been banned in Deadwood since 1905. While many residents of the town were pleased with the ban, miners who lived in town lost gambling houses as places to relax and enjoy a drink after a long day in the mines.
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