North Dakota lawmakers work to refine which groups can conduct charitable gambling • North Dakota Monitor
A bill under consideration by North Dakota lawmakers would restrict which organizations qualify to conduct charitable gambling.
The discussion comes as electronic pull tab machines have proliferated in North Dakota, with 5,250 devices similar to slot machines at 846 sites across the state as of Dec. 31.
The Legislature’s interim Judiciary Committee proposed Senate Bill 2035 to define what qualifies as a “public spirited organization” and can conduct gambling. Sen. Janne Myrdal, R-Edinburg, said the intent is to provide clarity and guard rails to limit unintended consequences of the charitable gambling industry.
“It’s a big, big money business,” said Myrdal, who chaired the interim committee.
In fiscal year 2025, the state had 337 charitable organizations licensed to conduct charitable gambling, according to the Attorney General’s Office. Of those, more than 160 organizations were classified as public spirited organizations. Other categories include veterans groups, public safety organizations like volunteer fire departments and civic groups such as Lions clubs.
Director of Gaming Deb McDaniel said her office sometimes gets complaints about nonprofit groups like snowmobile clubs or motorcycle clubs that have permits to conduct charitable gambling.
McDaniel said she’d like lawmakers to clarify which groups should qualify. Right now, she said, any nonprofit registered with the Secretary of State’s Office that has been fulfilling its primary purpose for two years is eligible.
The proposal met significant opposition during a Senate Judiciary Committee hearing Monday.
Opponents took issue with the elimination of the words “tourism” and “economic development” from the definition of a public spirited organization. The bill would also prevent amateur adult athletic groups from conducting gambling, but would continue to allow youth and collegiate athletic groups.
Sheri Grossman, chief executive officer of the Bismarck-Mandan Convention and Visitors Bureau, said charitable gambling accounts for about half of its budget.
“Our gaming funds are used to bring people to Bismarck-Mandan to spend money in our restaurants, hotels and stores, and visit our attractions, and showcase our communities to others who may want to live here,” Grossman said. Without the funds, she added, the organization wouldn’t be able to help fund annual events like the Fourth of July fireworks or Mandan Rodeo Days.
Teran Doerr, executive director of the Bowman County Development Corporation, also opposed the bill.
“I do believe that the language in Senate Bill 2035 is too subjective and creates some unnecessary uncertainty for organizations like ours,” Doerr said.
McDaniel said the bill would allow convention and visitor bureaus to keep conducting charitable gambling.
The committee voted 5-2 to advance the bill with a do-pass recommendation. Sen. Claire Cory, R-Grand Forks, and Sen. Ryan Braunberger, D-Fargo, voted against the bill.
Myrdal said the new definitions could be revisited as the bill progresses through the legislative process.
No members of the public testified in favor of the bill.
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