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Deadwood Gaming Halls Report Operating at Loss

DEADWOOD, S.D. -- More than half the Deadwood gaming halls said they operated at a financial loss last year. An industry spokesman said increased competition and high gaming taxes hold down profits.

A report by the South Dakota Gaming Commission said the 112 gaming outlets reported $881,850 in losses in 2003. The Deadwood gaming industry put its loss at $1.1 million in 2002.

"Ten years ago, Deadwood had 2,057 devices (slot machines and card tables). Now it has 3,011," said Mike Rodman, president of the Deadwood Gaming Association.

"This has forced casinos to spend much more on marketing, customer incentives, and advertising in order to survive, and as a direct result, more than half of the casino operations in Deadwood lost money last year."

Forty-seven percent of the operations reported making a profit in 2003.

"It's not just the higher expenses of the competition with so many added devices," said Rodman. "We have to be realistic and recognize that high gaming taxes are a major part of the problem as well."

Revenue in 2003 totaled $70.5 million from gambling, $13.4 million from food sales, $5.4 million from beverage sales and $20.9 million from lodging and other sources.

Copyright © Las Vegas Sun. Inc. Republished with permission.

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