Bill Seeks to Cap Deadwood Gaming Revenue, Redistribute Funds

Proposed legislation would boost city's budget for infrastructure and economic diversification

Mar. 12, 2026 at 4:50pm

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A bill in the South Dakota state Senate aims to cap gaming revenue in the city of Deadwood and redistribute the funds to other projects and industries. If signed into law by Governor Rhoden, the measure could increase Deadwood's annual budget by around $800,000, according to estimates.

Why it matters

Deadwood has long been dependent on its gaming industry, but this bill seeks to diversify the local economy by directing gaming revenue towards infrastructure improvements and supporting the development of other business sectors beyond just casinos.

The details

The proposed legislation would place a cap on the taxable gaming revenue in Deadwood, which totaled over $150 million last year. The funds would then be redirected to projects such as road improvements and other infrastructure, as well as efforts to grow industries outside of gaming, according to a historic preservation officer for the city.

  • Deadwood's taxable gaming revenue totaled over $150 million in 2025.
  • The state Senate is currently considering the bill.

The players

South Dakota State Senate

The state legislative body that is considering the bill to cap Deadwood's gaming revenue.

Governor Kristi Rhoden

The Governor of South Dakota who would need to sign the bill into law if it passes the state legislature.

Deadwood Historic Preservation Officer

A city official who has stated that the bill would allow Deadwood to make changes and grow industries beyond just gaming.

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What they’re saying

“The bill would allow the city to make changes and grow other industries besides just gaming.”

— Deadwood Historic Preservation Officer

What’s next

If passed by the state Senate, the bill would then go to Governor Rhoden for signature into law.

The takeaway

This proposed legislation represents an effort by Deadwood to diversify its economy beyond its long-standing reliance on the gaming industry, potentially boosting funding for infrastructure and supporting the growth of new business sectors in the city.