Gov. Larry Rhoden has signed a bill that will keep more tax revenue in local communities
Casinos in Deadwood, SD, are set to benefit from a new law that will keep more gaming tax revenue within the historic town. The change follows recent legislation signed by Gov. Larry Rhoden, aimed at increasing funding for local communities tied to the state’s gaming industry.
The measure updates how casino taxes are distributed, allowing Deadwood to retain a much larger share of the 9% gaming tax collected from operators. Previously, the city faced a cap on how much it could receive each year. With that limit now removed, more funds will stay in the local economy starting in mid-2026.
Under the revised structure, a portion of the tax will still go to the state and surrounding areas, but the majority will be directed back to Deadwood. Local officials expect the change to bring in millions of additional dollars annually, giving the city more flexibility in how it uses gaming revenue.
Much of that funding is expected to support preservation efforts. Deadwood has long relied on casino income to maintain its historic buildings and landmarks, many of which date back to the gold rush era. Protecting these sites plays a major role in attracting visitors and sustaining tourism.
The town’s economy depends heavily on gaming and tourism. While its casinos are smaller in scale compared to major destinations, they remain a central part of daily activity. Dozens of venues, ranging from bars with slot machines to larger properties, contribute to steady revenue levels.
Recent years have seen strong performance from the local gaming sector, with annual totals remaining well above pre-2020 levels. That consistency has helped reinforce the importance of casinos to the region’s financial stability.
