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.

In 1919, the U.S. government had passed the Prohibition Act banning the sale and distribution of alcohol. During the roaring twenties, gaming became illegal but continued to operate behind closed doors. With the repeal of the Prohibition Act in 1935, gambling once again flourished in Deadwood until 1947, when it was officially closed.

During the 1980s the question of gaming resurfaced, and a petition was introduced to reinstate gaming in Deadwood. In 1986, local business owners agreed to lobby for legalized gaming to create economic development for the community. In 1988, the gaming issue initiative was put on the state ballot. It passed with 64% of the vote and was authorized to begin on November 1, 1989. The introduction of gaming has enabled Deadwood to preserve its historic buildings and dramatically increase tourism. The lure of gaming is not the only draw to Deadwood; people are also fascinated by its unique, colorful history.