North Dakota lawmakers advance bill to redefine charitable gambling eligibility

A proposed bill aiming to refine which organizations qualify to conduct charitable gambling has advanced in North Dakota’s legislature amid concerns over the rapid growth of the industry and its financial implications.  

The Senate Judiciary Committee voted 5-2 on Monday to approve Senate Bill 2035, which introduces a narrower definition of "public-spirited organizations" eligible to conduct gambling. The bill addresses the state's burgeoning charitable gambling sector, which includes 5,250 electronic pull-tab machines spread across 846 locations as of December 31.  

Under the proposed law, organizations must focus on areas such as scientific research, safety, cultural preservation, or community care to qualify as public-spirited. Nonprofit clubs that primarily benefit members, such as snowmobile and motorcycle clubs, would no longer qualify.  

Tourism and economic development organizations, which currently benefit from charitable gambling revenues, would also lose eligibility under the new definition, sparking criticism from local leaders.  

Sheri Grossman, CEO of the Bismarck-Mandan Convention and Visitors Bureau, said gambling revenues account for half of her organization’s budget, which funds local events like the Fourth of July fireworks and Mandan Rodeo Days.  

“Our gaming funds are used to bring people to Bismarck-Mandan to spend money in our restaurants, hotels, and stores, and visit our attractions,” Grossman said. Without these funds, many of the events would be at risk, she added.

Teran Doerr, executive director of the Bowman County Development Corporation, echoed concerns, calling the bill’s language “too subjective” and warning of unnecessary uncertainty for organizations reliant on gambling revenue.  
  
Supporters of the bill argue it is necessary to provide clarity and prevent misuse in an industry that has grown substantially in recent years.  

“It’s a big, big money business,” said Sen. Janne Myrdal, R-Edinburg, the bill’s sponsor and chair of the interim Judiciary Committee. She emphasized the importance of implementing “guard rails” to ensure proper oversight.  

Director of Gaming Deb McDaniel said her office regularly receives complaints about nonprofits conducting gambling and supported clearer guidelines for eligibility.  

Despite significant opposition and no public testimony in favor of the bill, the committee advanced it with a do-pass recommendation. Senators Claire Cory, R-Grand Forks, and Ryan Braunberger, D-Fargo, voted against it.  

Myrdal acknowledged the bill’s definitions may require further revisions as it moves through the legislative process.  

The proposal comes as North Dakota’s charitable gambling industry, buoyed by electronic pull tab machines, continues to grow, raising questions about its scope and beneficiaries.