Deadwood Casino Goes Bankrupt Two Months After Kevin Costner Closes Midnight Star
Posted on: November 6, 2017, 04:00h.
Last updated on: November 7, 2017, 02:05h.
Deadwood casinos have been struggling in recent years as visitation numbers have declined to South Dakota’s Black Hills. More bad news broke last week with the revelation that the Celebrity Hotel and Casino has entered Chapter 11 bankruptcy protection.
Located directly across from the saloon where Wild Bill Hickok was shot dead in 1876 while playing a game of poker, Celebrity declared $6.37 million in assets in its bankruptcy paperwork, but also $6.37 million in liabilities and over $3.5 million owed on two bank loans.
The Hollywood-themed casino and hotel is owned by a Nebraska family who couldn’t be reached for comment. But Celebrity casino general manager Ken Gienger, who’s reportedly ran the property for nearly 30 years, told the Rapid City Journal and Black Hills Pioneer that the parent company is simply undergoing a reorganization.
“Nobody’s looking at being laid off,” Gienger explained. “Our goal is to continue to improve and come out with the best result that is possible. It might be good, it might be bad, but it will work out.”
In addition to its casino space, Celebrity includes a museum featuring relics from Hollywood films. According to its website, there’s over 75 pieces of movie memorabilia from films including Back to the Future, Shawshank Redemption, Sleepless in Seattle, and Titanic.? ?
Dying Deadwood
It was just two months ago that A-list actor Kevin Costner closed his Midnight Star casino and restaurant. The gambling emporium had been owned by Costner since he first fell in love with Deadwood back in 1990 while he was on location there for the filming of Dances with Wolves.
The HBO series Deadwood?(2004-2006) kept the remote mining town current and popular, but that show aired its final episode now over a decade ago, and tourism has been declining since.
Numerous casinos have closed, and gaming income continues to drop. Through September, total gross slot and table game revenue stands at $850.3 million, a 2.5 percent loss compared to 2016 when the year finished down almost five percent.
Deadwood Back to Life
Tourism analysts have opined in the past that Deadwood has failed to evolve. “A destination brand ‘refresh’ helps maintain the status quo as well as attract new markets,” hospitality professor Alan Fyall said in 2015.
Deadwood Gaming Association Mike Rodman said they’ve asked the state legislature to allow the town to increase its hotel occupancy tax to generate more marketing dollars, and also requested 24-hour liquor sales, both of which were denied.
Rodman says Deadwood is currently working on a comprehensive plan to rejuvenate gaming.
“We have had a five-year period of reduced revenues … which we’ve tried to signal the alarm bells about. Any industry that has that period of decline in revenues is going to feel the negative impacts,” Rodman explained.
“The Main Street of Deadwood is the draw for our visitors and a healthy Main Street is paramount to the ongoing success of the town,” he concluded.
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Last Comments ( 6 )
we have come to Deadwood for past 15 years, we enjoy the Wild Bill Days but hotel prices are completely out of line. Where we stay because i have a walking disability a 3 night stay is almost 700.00. That is crazy we go to Branson and a 3 night stay at a 4 star hotel is less that 400.00. That and the businesses employees are not as friendly as the were when we first started coming. Casinos closing because they are to tight. walk in to play walk out 15 minutes later out 50.00, that is not my idea of fun fun fun. So is Deadwood dying, yes it is and you need to look at the greed of businesses that is causing it.
For twenty years we went to Deadwood at least twice a year. Not any more. Slot machines no longer pay much if at all, every since town raised their tax per machine to casino owners, casino employees have told us this many times. Way too many shops on main street and way too many small casinos closed in the last few years. No longer much of a 'old wild west' town. Sad but true.
We love coming to Deadwood to gamble and see the sights of the surrounding area. Hotel rooms are too expensive for the average income family and these families are the people bringing in the money as it was in the beginning of gambling in Deadwood. The gambling machines are too tight and no longer pay out good winnings as they did in the beginning. This is why you are losing gambling establishments and the people no longer come, they want to come to enjoy themselves and not lose their money within a few hours. Loosen up the machines, let the customers and tourists win and the people will come back. Word of mouth is your best advertising, try it and see. Lower the costs of hotels and gambling. If you offer something the normal people can afford they will come to play and stay. Rich people will not do it for you, more average income people than rich people.
I love the town of Deadwood. I visit 3 to 4 times a year to hike the surrounding trails and enjoy the on going events in town. There are times when the prices are just out of the park for a hotel. Only the wealthy can pay $300.00 to 400.00 a night for a room. Families on a summer vacation and on a budget cannot afford this. The town and its investors should realize this. Make it affordable and families would come to see it. Stop trying to "fleece" the visitors for everything they got. I know the town "jacks up" the prices during tourist time to make as much as they can while the weather is good. As far as the gambling..... I don't see many people winning. The machines are tight. No if's and's or but's about it. Stop being so greedy and a little more generous...….maybe then tourism will pick up if the word gets out. Bottom line.... more people going through town equals more money verses higher prices and less people. So please, stop being greedy. Let people come and enjoy deadwood and the surrounding area.
Yep me agree
Your way to high priced on your rooms, and it has turned a lot of people away.