Peterson played a point guard position for the Blue Devils basketball team in 1940-43 and 1946-47 before the term was even known. Peterson, deceased, scored 410 career points, but dribbling was his forte. When the Blue Devils qualified to the NAIA Nationals in Kansas City in 1942, he won over fans with a solo dribbling exhibition that may have lasted four minutes during an opening 47-42 win over Texas Wesleyan. Peterson was also a master of the look-away pass. As did many students, Peterson joined the armed services during World War II, then returned to Stout after the war.