At high noon on November 1, 1989, the City of Deadwood celebrated the official start of limited-stakes gambling, becoming the third place in the United States to legalize gaming (after Atlantic City and the state of Nevada). Since then, over $170 million in public and private funds have been invested in restoring the community, making it one of the largest ongoing historic preservation projects in North America. Its frontier history, regular public entertainment events and the surrounding Black Hills National Forest have turned it into a popular visitor destination, attracting more than two million tourists annually.

History

In 1874 Colonel George Armstrong Custer led an expedition into the Hills and announced the discovery of gold on French Creek near present-day Custer, South Dakota. Custer's announcement triggered the Black Hills Gold Rush and gave rise to the lawless town of Deadwood, which quickly reached a population of around 5,000. In early 1876, frontiersman Charlie Utter and his brother Steve led a wagon train to Deadwood containing what were deemed to be needed commodities to bolster business, that included gamblers and prostitutes, which proved to be a profitable venture.

It was to be the site of the Homestake Mine, operated by Fred and Moses Manuel. It attained notoriety for the murder of Wild Bill Hickok, and remains the final resting place of Hickok and Calamity Jane, as well as slightly less famous figures such as Seth Bullock. It became known for its wild and almost lawless reputation, during which time murder was common, and punishment for murders not always fair and impartial.

As the economy changed from gold rush to steady mining, Deadwood lost its rough and rowdy character and settled down into a prosperous town. In 1876 a smallpox epidemic swept through the camp, with so many falling sick that tents had to be set up to quarantine them. Also in that year, General George Crook pursued the Sioux Indians from the Battle of Little Big Horn on an expedition that ended in Deadwood, and that came to be known as the Horsemeat March.

A fire on September 26, 1879, devastated the town, destroying over 300 buildings and consuming everything belonging to many inhabitants. Without the opportunities of rich untapped veins of ore that characterized the town's early days, many of the newly impoverished left town to try their luck elsewhere.

A narrow gauge railroad, the Deadwood Central Railroad, was founded by Deadwood resident J.K.P. Miller and his associates in 1888, in order to serve their mining interests in the Black Hills. The railroad was purchased by the Chicago, Burlington and Quincy Railroad in 1893. A portion of the road between Deadville and Lead was electrified in 1902 for operation as an interurban passenger system, which operated until 1924. Apart from a portion from Kirk to Fantail Junction, which was converted to standard gauge, the railroad was abandoned in 1930. The remaining section was abandoned by the successor Burlington Northern Railroad in 1984.

Some of the other early town residents and frequent visitors included Al Swearengen and his employees Dan Doherty and Johnny Burns, E. B. Farnum, Charlie Utter, Sol Star, Martha Bullock, A. W. Merrick, Samuel Fields, Harris Franklin, Dr. Valentine McGillycuddy, and the Reverend Henry Weston Smith.

The property around Deadwood increases in value and desirability with the growth of the gaming industry and the permanence of the surrounding Black Hills beauty and opportunities.