South Dakota Shifts More Gaming Tax Revenue to Deadwood 

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Deadwood’s share of state gaming revenue will rise after Gov. Larry Rhoden signed Senate Bill 102. This change redirects a much larger portion of the 9% gaming tax revenue to the city where commercial gambling is confined.

Deadwood, South Dakota as gaming tax revenue gets reassigned

Key Takeaways:

  • Legislation redirects 71% of gaming tax to Deadwood, boosting local funds
  • New law aims to support historic preservation and economic growth
  • Revenue gains reflect Deadwood’s record-breaking 2024 gross gaming revenue

The law, effective July 1, 2026, removes a previous cap and allocates 71% of the gaming tax revenue to the City of Deadwood, with smaller percentages to the county and local school district. 25% will flow to the state general fund. 

According to local reporting, Rhoden said, “I am committed to keeping our communities strong and South Dakota ‘Open for Opportunity,’ and that is exactly what these bills do.” 

Deadwood’s gross gaming revenue reached a record in 2024 of $151.9 million and has climbed significantly since 2019 by 36%, per Casino.org.

Helping the Community

The shift responds to long-running local appeals for more funds to support the city’s preservation-led economic model. 

Deadwood channels casino tax receipts into a Historic Restoration and Preservation Fund that has financed grant and loan programs for its National Historic Landmark district.

Local leaders argue the change will better align tax flows with the town’s preservation and tourism priorities. Statewide data indicate overall gaming taxes rose modestly in the last decade while Deadwood’s retained dollars had been essentially flat, prompting lawmakers to recalibrate distribution formulas. 

Deadwood’s compact casino landscape, dominated by small bar-casinos and a handful of larger slot venues, means even moderate revenue gains translate into concentrated local capital for infrastructure and heritage projects. 

In other jurisdictions, policymakers are also exploring ways to direct gambling-related revenue toward public priorities. In Mississippi, lawmakers have moved to intercept gambling winnings to cover overdue child support payments. This is to ensure that gaming proceeds can be used to address social obligations before reaching players.