North Dakota Senate Approves Charitable Gaming Limits

On Thursday, the North Dakota Senate narrowly approved Senate Bill 2035, a proposal that would significantly narrow the definition of organizations allowed to conduct charitable gaming in the state. The legislation, aimed at clarifying the purpose of charitable gaming laws, passed with a close vote of 27-20.

 

Key Provisions of Senate Bill 2035

The bill, sponsored by the Legislative Management Committee, seeks to redefine what qualifies as a “public-spirited” organization, removing categories such as “tourism” and “economic development” from the definition. Additionally, adult amateur sports organizations would no longer be permitted to host charitable gaming events under the revised guidelines.

Gaming Director Deb McDaniel defended the bill, stating that its intent is to provide a clearer framework to ensure charitable gaming benefits genuine causes. She noted that her office frequently receives complaints about organizations that may not fit the traditional understanding of a charity.

“This legislation is designed to focus charitable gaming efforts on supporting bona fide charitable initiatives rather than broad interpretations of public benefit,” McDaniel said.

North Dakota has been proactive in regulating gaming activities. In 2022, the state established rules limiting the companies allowed to operate electronic pull-tab machines, signaling a trend toward tighter oversight. Senate Bill 2035 continues this regulatory trajectory, sparking heated debate over who should be eligible to participate in charitable gaming.

 

Opposition to the Bill

The proposed changes have faced criticism from several quarters. Teran Doerr, executive director of the Bowman County Development Corporation, urged the Senate Judiciary Committee to reconsider the bill. He expressed concerns about its subjective language and the potential harm it could cause to local development efforts.

“I do believe that the language in Senate Bill 2035 is too subjective and creates some unnecessary uncertainty for organizations like ours,” Doerr stated in a publication by the Bismarck Tribune.

Scott Meske, a member of the North Dakota Gaming Alliance (NDGA), also voiced strong opposition, arguing that the bill misses the mark. Meske emphasized that charitable gaming in North Dakota has generated $73 million for community causes over the past two years. Instead of limiting who can host games, he suggested addressing concerns about how proceeds are spent.

“There are ways to ensure transparency and accountability without stripping organizations of their ability to support their communities,” Meske testified.

The passage of Senate Bill 2035 could reshape North Dakota’s charitable gaming landscape, with tourism, economic development, and amateur sports groups likely to feel the impact. Critics argue that these changes might undermine the spirit of community support that charitable gaming was designed to foster. Proponents, however, contend that the revised framework will prevent potential misuse of gaming privileges and ensure resources are directed toward authentic charitable initiatives.

 

Looking Ahead

As the bill moves forward, North Dakota faces a critical question: how to balance regulatory oversight with preserving the broad community impact of charitable gaming. The narrow Senate vote highlights deep divisions on this issue, suggesting that further debates may be on the horizon as stakeholders and lawmakers seek common ground.