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Not until summer 1897 was a wooden structure built at Sheep Camp. Early photographs show a combination hotel and store existed on the east side of the river. A man named Palmer ran it. Alfred Daly, who traveled north in mid‑September 1897, termed it

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…a shanty where they had a floor. It was a kind of a hotel. You paid for the privilege of sleeping on the floor. The proprietor told us that if we didn’t get our blankets down on the floor very quickly, we couldn’t get room. He was right. The floor was full very soon.

The B. S. Foss supply store existed west of the main river crossing. Foss, a Swede, was known as a “pioneer merchant of Sheep Camp.” In September, one newspaper reported that the camp supported two restaurants and a gambling saloon. Another listed two restaurants, two well‑stocked stores, three saloons and an average population of about 700. Later the same month, there were four or five saloons along with the gambling tent. In August, the organizers of the Dyea‑Klondike Transportation (DKT) Company claimed one thousand miner’s inches of water for power purposes “to be taken from the Dyea River at Sheep Camp, and thence conveyed by pipes and flumes to the power house at Sheep Camp.” The DKT Company built a powerhouse at Canyon City and a tramway depot at the Scales, but erected no known improvements at Sheep Camp.
Sheep Camp numbered 250 persons by mid September. On September 18, 1897 a wall of water swept through the camp. This inundated the large assemblage of tents on the west side of the river south of the crossing. One source claimed that the “tower of water” was nearly forty feet high. Others have suggested a height of five feet or less. All of the camp’s residents survived the debacle, but hundreds of outfits were buried or swept downriver by the rampaging floodwater. The small community quickly recovered.
With the freezing of the Interior rivers growth in the camp slowed. The camp did not change noticeably during October 1897. At late as January 1898 there were still a relative handful of wooden buildings to complement the “couple of hundred tents straggled along the floor of the gorge.” By the standards of the time and circumstances, Sheep Camp was relatively businesslike, even prudish. One diarist remarked that it was a quiet community; there was a notable lack of dance halls, “gambling joints,” and prostitution.

The Black Sheep Casino, operated by the Black Sheep Casino Company, was based out of Cameron Park in California. It was fairly small, which may have contributed to its going out of business, but it was very popular with those who lived nearby.

The Casino Black Sheep was situated in a small neighbourhood shopping centre up on a fairly remote road in the mountains. If you didn't live in the area or know it was up there, you would probably not expect a casino in such an area. There wasn't a large amount of parking in the strip mall area, but people who wanted to visit Black Sheep could find a place to park if they didn't mind a short walk. The building itself was a very nice room, but while its wide windows made the area feel rather spacious, the truth is that Black Sheep only had room for two nine-player tables.

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Black Sheep Casino wasn't the only good casino in California. The state actually has a good number of casinos, including more than 65 Indian casinos and over 90 different poker casinos. The legal age to make bets is 18, but because most casinos serve alcohol, the de facto age to gamble is 21. In addition to BlackSheep and these casinos, California also allows betting on horse races, playing the state lottery, and gambling in charity games. State legislation has been passed that prohibits casino-type gambling such as those found in Nevada.