The first rally was held on 14 August 1938, by the "Jackpine Gypsies" motorcycle club,[1] who still own and operate the tracks, hillclimb, and field areas where the rally is centered. The first event was called the "Black Hills Classic" and consisted of a single race with nine participants and a small audience. The founder is generally considered to be Clarence "Pappy" Hoel. He purchased an Indian Motorcycle franchise in Sturgis in 1936 and formed the "Jackpine Gypsies" that same year.[1]
The focus of a motorcycle rally was originally racing and stunts. In 1961, the rally was expanded to include the Hillclimb and Motocross races.[1] This could include half-mile track racing (the first year in Sturgis, there were 19 participants), intentional board wall crashes, ramp jumps and head-on collisions with automobiles.
The Sturgis Rally has been held every year, with exceptions during World War II. For instance, in 1942, the event was not held due to gasoline rationing.[1]