South Dakota is one of the US states with very interesting gambling history. When exploring their history it would seem that legalising gambling was a must and not a want for this state. The main reason legal gambling activities was brought to South Dakota was to save the dying mining town, Deadwood. And today one of the state’s top priorities is still to preserve and protect Deadwood’s commercial gambling industry.

It all started in 1874 when gold was found in Deadwood and the Black Hills Gold Rush began. The town was immediately filled with miners, brothels and gamblers. Gambling was deemed a dangerous ‘sport’ after “Wild Bill” Hickok was shot and killed during a poker game in the mining town in 1876.

Then in the 1950s, the state enacted laws to stop illegal gambling. From there it took a decade before legal gambling options were put in place. The lottery was approved by voters in 1960 with the South Dakota Lottery only created in 1987.

From there it was an uphill battle with voters defeating the video lottery gaming bill in 1988. And in 1989 a voter referendum approved video gaming and commercial casinos in Deadwood. After a repeal attempt in 1992, the video lottery managed to remain in the state with a 63% vote in its favour. Again in 1994 video gaming is under review with the South Dakota Supreme Court ruling it unconstitutional. Voters quickly jump at the opportunity to approve a constitutional amendment to legalize video lottery gambling.

In the year 2000 Deadwood casinos gain a victory with maximum bets increased from $5 to $100. And in 2006 again there is another attempt to outlaw video lottery which voters reject with a 67% vote in favour of video lottery.

In 2012 out of state competitions encourage South Dakota to increase the maximum bet amount in casinos to $1,000. In 2014 a voter referendum approves craps, keno and roulette games in commercial casinos. This led to attorney generals from South Dakota and other states writing angry letters to the US DoJ about the Wire Act opinion.

Early in 2020, there was a resolution passed to place an amendment on the ballot allowing residents to vote on sports betting. If the vote is in favour of sports betting it could be legalised in the state within the next year or two. 

The majority of legal gambling activities take place in Deadwood but video lottery machines and other gaming options are widespread across the state in taverns, restaurants and bars. There are several corporate bodies established to regulate the thriving commercial gambling scene in the state.

The South Dakota Commission on Gaming is a five-member commission that has been appointed by the Governor of the State. The commission is tasked with regulating the wagering activities in Deadwood. Other tasks also include regulating all live horse and simulcast racing activities. The commission has two division namely Enforcement and Operations. The Enforcement Division conducts background and criminal investigations relating to gaming. They also monitor all casino gaming activities within the state.

The Operations Division conducts regular compliance and revenue audits of all casinos located within Deadwood. This division is also responsible for the inspection of slot machines and all statistical gaming data and racing activity. To obtain a license, applicants are expected to submit a completed fingerprint card which can only be obtained from the South Dakota Commission on Gaming Deadwood offices. There are multiple license options for casinos, wagering hubs and live racing & simulcast.

The South Dakota Lottery Commission is another five-member board that has been appointed by the Governor. This board established the policies and advises on the operations of the South Dakota Lottery. This includes approval of any major winnings. The commission meets at least once each quarter but additional meetings can be requested by the Executive Director or three commission members. The lottery includes local lotteries, raffles and also participation in interstate lottery draws such as the Powerball and Mega Millions.

The state also has a non-profit organization known as the Deadwood Gaming Association (DGA). The DGA is a non-profit that represents the interests of the South Dakota commercial casino industry. It was founded in 1990 and interestingly enough started representing the gaming industry before the South Dakota Commission on Gaming and the Deadwood City Commission.

The tribal casinos in the state are owned and operated by the federally-recognized South Dakota tribes. Each of the tribes has a compact with the state allowing them to offer Class III gaming options.