DEADWOOD - The members of the Deadwood You Bet committee made much of their own luck by hard work during their drive for legalized gambling in Deadwood in the late 1980s.
Committee members were a sampling of Deadwood leaders who saw a need to revitalize the town's economy and its historic character.
They made a calculated decision that paid off when they paired legalized gambling with historic preservation. The two have since been linked with gambling as a funding source for preservation projects and historic preservation as a draw for visitors to town.
Committee members faced a winding road to their goal and found some fortunate circumstances on their side along the way.
"I do think it was a bit of a perfect storm," said Deadwood Chamber of Commerce Director George Milos. "I think the timing was right, and I think the Deadwood You Bet committee made excellent decisions in their campaign efforts."
"The timing was just perfect. There wasn't the expanse of gaming back then," committee president Melodee Nelson said. In the mid-1980s, the only gambling destinations in the United States were Atlantic City, N.J., and Las Vegas. Deadwood found support for a gambling city in the middle of America.
Nelson was a young mother when she led the committee, keeping efforts on schedule and within deadlines.
The committee found support and sympathy from voters throughout South Dakota. The legalized gambling proposition required an amendment to the state's constitution. The committee gathered 36,000 signatures on nominating petitions - double the required 18,000.
"We were tying it to historic preservation, and we were trying to keep it limited," Nelson said.
"I think it really helped that Deadwood's history was gaming and lawlessness," Milos said.
Another stroke of luck, of sorts, was when the Main Street Syndicate Building burned to the ground in 1987.
The fire highlighted Deadwood's relative helplessness: There wasn't enough water to put on the fire to save the historic building.
Dave and Mary Larson, who owned the Sears store then, videotaped the fire and used that film to solicit "yes" votes statewide before the election.
"I think the voters of South Dakota were a bit sympathetic to our plight, especially when the Syndicate Fire video and photos were used extensively in the Deadwood You Bet advertising," Milos said.
"I think the voters wanted to help save a historic town that is a part of their state."
The measure to legalize limited-stakes gambling passed in a statewide general election with a 65 percent majority.
The committee itself was fortunate to have hard-working and committed people on board. At least one other South Dakota town - Yankton - had hopes of pulling off the same success for itself.
Former state legislator Jim Dunn of Lead gave the Yankton promoters a primer on what it would take to get legalized gambling status. He said after telling them what needed to be done, Yankton supporters backed away, saying it was too much work.
There was even some luck involved after voters opted to legalize limited gambling. Outside investment and enthusiasm for the gaming industry brought millions of dollars to the city for new business development.
Lots that were dilapidated became prime property, and the real estate market soared.
Some towns in neighboring states soon followed with legalized gambling, pulling a sector of Deadwood's market. Deadwood then instituted a $100 bet limit - above its original $5 limit - further boosting revenues to the city and state.
Hollywood also helped Deadwood's status when actor Kevin Costner and actress Rue McClanahan bought property in Deadwood to get a piece of the action. Later, cable television's HBO produced the series "Deadwood," loosely based on the 1876 settlement of Deadwood Gulch during the gold rush.
Today, the novelty of gambling has lost some of its luster, leading some locals to believe that a push for legalized gambling in Deadwood now would likely lose in today's political climate.
"I'm not sure if the effort would work today, but with gaming being so prevalent throughout the U.S., it would be a much more difficult task," Milos said.
Nelson said she never envisioned that the move would fundamentally change Deadwood.
"We didn't see having so many places that would have gambling. We just thought it would add on to what was already here. We were very naive in that respect," Nelson said.
"Overall, it's going really well. It makes me feel very good. We don't have a crystal ball, but my guess is Deadwood wouldn't look very good" without gambling, Nelson said.
Posted in News, Local on Thursday, November 5, 2009 7:45 am Updated: 9:23 pm.
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