Bet Limit Boost Increases Revenue in Deadwood

As of July 1st, bet limits in Deadwood had a substantial increase. This is the second time the limit has been raised. When gaming was established in the late 1980’s,  a $5 limit was put in place. In 2000, it was raised to $100 and with the second increase; there was a dramatic rise to $1000. The change was put into place in hopes to generate revenue in Deadwood gaming parlors. Factors such as the economy as well as the recent no smoking ban had taken its toll on revenue in the area.

The new limit covers casinos on state land within Deadwood as well as the eleven casinos located on tribal land. Participation was an option for gaming facilities rather than a requirement.  An increase in bet limit would demand an increase of cash on hand for higher payouts as well as a boost in security measures (surveillance cameras, employees, etc.) .  Smaller establishments were expected to opt out due to the cost of complying with rules and regulations.

Since July 1st, the rise in revenue has been linked to the increase in bet limits. Slot machine revenue was up 5.5% while game table revenue was up 20% in the month of July. From July 2011-July 2012 the total gross increased 6%. The biggest increase was seen at the house banked poker games with an impressive 38.9% rise compared to July 2011.

The new law has not likely increased the amount of visitors at casinos, but rather targeted high rollers who had the option to spend more money.  The new law also allows Deadwood to compete with other markets such as North Dakota’s $250 limit, Minnesota’s $1,000, and the unlimited bet restrictions in Iowa and Nevada.