South Dakota's Long History with Gambling
One of the earliest - and most romanticized - examples of widespread gambling anywhere in the U.S. took place around 150 years ago in Deadwood, South Dakota.
It was in the 1870s, during a massive gold rush in that area, that all sorts of people from all over the region flocked to illegal activities such as gambling that flourished in that city.
Even casual poker players likely have heard the phrase "dead man's hand." American folk hero "Wild" Bill Hickok, as the legend goes, was holding a pair of aces and 8s when he was shot and killed in a Deadwood saloon.
The "what happens in Deadwood, stays in Deadwood" lifestyle - a forerunner of the same phrase that now applies to Las Vegas - flourished for a few years before a devastating fire in the heart of the city in 1879 destroyed more than 300 buildings.
Many residents – especially the temporary ones – fled and never returned.
Gambling regulation to boost struggling economy
South Dakota achieved statehood a decade later, and the formality of such a status seemed to stir efforts to crack down on various illicit activities across the state. As part of that charge, all forms of gambling were formally banned in the entire state in 1905.
In a tragic coincidence, a major fire in Deadwood in 1987 once again devastated that region's economy - to the extent that lawmakers legalized casino gambling in the city in 1989. The premise was that tourism would be boosted by an extra regulated form of entertainment being available.
To the point, only Nevada and New Jersey had authorized casino gambling. The Midwestern monopoly didn't last long, however, as numerous states in the region also approved casinos in the next 10 to 15 years.
Another issue that limited the upside of economic growth from gambling in Deadwood came in the form of a paltry $5 limit per play on slot machines, poker, and blackjack. The limit belatedly was raised to $100 in 2000 and then to $1,000 in 2012.
Native American tribes get in on the gambling action
Much like the New Jersey setup in Atlantic City, all of the commercial casinos in South Dakota are located within the Deadwood city limits.
Currently there are nearly two dozen such casinos in operation, including resorts with names like Cadillac Jack's Gaming, Hickok's Hotel & Gaming, Tin Lizzie Gaming, and Deadwood Gulch Gaming.
The difference, however, is that New Jersey has no tribal casinos - while South Dakota has had them since 1993.
Nearly a dozen such casinos are located on tribal land all across the state, including Rosebud Casino in Todd County and Prairie Wind Casino & Hotel in Laglola Lakota County - each on the state's southern border with Nebraska – as well as Lode Star Casino & Hotel in Buffalo County.
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Sports betting in South Dakota
In late 2021, South Dakota's casinos were permitted to open sportsbooks as an added amenity for gamblers.
But in 2025, only seven Deadwood casinos actually had a sportsbook. Those casinos reported a combined total of just $1.25 million wagered in December 2025, which was not an unusual figure even in a so-called "football month."
Of course, that number likely would rise by a factor of 10 or more should the state legislature ever authorize mobile sports betting - a particularly relevant factor in a state with such brutal winters that at times prevent casino visitation.
Lawmakers did make some progress in early 2026 in efforts to bring a statewide referendum to voters in November that would bring South Dakota in line with the vast majority of U.S. states.
But in early March, a state House of Representatives rejected the proposal, dimming the hopes of advocates of the gambling option for at least another year.
Horse races far and far between in South Dakota
As of 2019, the only horse racing left in South Dakota is held in Fort Pierre in the central part of the state, and the only off-track betting site in the state closed in December 2025.
The Fort Pierre location, which opened nearly 80 years ago, at this point only offers two racing dates on the same weekend each in early October.
South Dakota does have a state lottery, launched in 1987 – as all but five U.S. states do as of 2026.
