Deadwood’s gambling regulators are looking into Mustang Sally’s more, and they say there are more illegal bets.

Deadwood’s gambling regulators are looking into Mustang Sally’s more, and they say there are more illegal bets.

Home > Deadwood’s gambling regulators are looking into Mustang Sally’s more, and they say there are more illegal bets.

Deadwood’s gambling regulators are looking into Mustang Sally’s more, and they say there are more illegal bets.

The South Dakota Gaming Commission (SDGC), which is in charge of all gambling in Deadwood, the only place in the state where commercial casinos are allowed, is looking into Mustang Sally’s in more depth.

Deadwood betting on games and sports Mustang Sally’s

On Main Street in Deadwood is where Mustang Sally’s is. There are a lot of places to gamble in the historic South Dakota Gold Rush town. (Picture of Old Deadwood)
In October, the state gaming regulator took away Mustang Sally’s gaming license after the bar’s owner, Toby Keehn, admitted that he and other employees had let illegal proxy bets be made on their behalf. Jennifer Haefs, who worked at Mustang Sally’s, told the commission that she often bet on sports for other people while she was on the job.

The SDGC thinks that there was more illegal betting going on at Mustang Sally’s. Tomorrow, at a commission meeting, the state will look at evidence about claims that another former Mustang Sally’s employee placed sports bets for people who were too young to do so.

“In August 2022, while working at Mustang Sally’s, Mathew Steinlicht placed multiple proxy bets for underage people,” the South Dakota Gaming Commission wrote in a complaint against Steinlicht.

Bets are made on behalf of someone else when a proxy is used. Even though proxy betting is legal in some parts of the world, it is against the law in Deadwood. If you break the state’s proxy betting law, you could spend up to two years in prison and pay a $4,000 fine.

There are nine types of felony crimes in South Dakota. Class A, B, and C felonies can get you a sentence of up to life in prison. Class 6 is the least serious of the other six types of felonies, with 1 being the most serious.

Keehn avoided prison time. But he also had to give up his gaming license and pay a $25,000 fine.

Say Specifics Claims

Mustang Sally’s is no longer a legal place to gamble in Deadwood because it lost its gaming license. Even though Keehn begged the state for forgiveness and the casino’s owner said “it will never happen again,” the SDGC took away the casino’s license to operate.

Like many other casinos in Deadwood, Mustang Sally’s only had a small number of slot machines. When its license was taken away, the building on Main Street had 30 slot machines and two self-service sports betting kiosks.

Since then, Mustang Sally’s has been a sports bar with simple food and drinks like burgers, wings, milkshakes, and beers. If Keehn wants to be able to gamble again in the future, the SDGC hearing tomorrow probably won’t help his chances.

Brandon Snyder, who lives in Deadwood and claims to have seen Steinlicht break the law, told the SDGC about the complaint against Steinlicht. Steinlicht has already given up the license that let him work in a Deadwood casino as an individual gambler. Steinlicht is using his right under the Fifth Amendment to keep quiet.

Violations for minors

Deadwood gaming regulators think that Steinlicht’s alleged illegal sports betting facilitation is most serious when it comes to proxy betting. But it is also illegal for him to help people under 18 gamble.

The SDGC says that it is a Class I misdemeanor for a licensee to let someone under 21 gamble in a licensed casino in the state.

A casino that lets people in who are too young to gamble could lose its license to do so. But since Mustang Sally’s already lost its license, the state is likely to think about giving Steinlicht a personal punishment.

For a Class 1 misdemeanor, you could spend up to a year in jail and pay a $2,000 fine. He is already facing a Class 6 felony charge for proxy betting, so this is another charge against him.

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