On Thursday, the North Dakota Senate voted on a bill aiming to limit the number of organizations permitted to carry out charitable gaming in the state. The proposed law would remove certain categories from the law’s definition of a “public-spirited” organization.
The vote on Senate Bill 2035 was a close one. A total of 27 representatives gave their ‘yes’ and 20 representatives said ‘no’ to the bill.
The bill is being sponsored by the legislative management. That consists of 16 members, including Representative Mike Lefor, the chairman of the group. Also included is Senator David Hogue, serving as vice chairman, and Representative Glenn Bosch with a host of others.
This is not the first time North Dakota has made regulatory changes toward gaming. In 2022, the state set rules as to which companies would be allowed to offer electronic pull-tab machines.
What does Senate Bill 2035 entail?
Questions have been raised on what kind of gambling organization will be taking the hit to halt charitable gaming.
At the center of the controversy were changes to the definition of “public-spirited” organizations. These organizations are permitted to host gambling events. The committee’s revisions struck the words “tourism” and “economic development” from the definition. The new language would also bar adult amateur sports organizations from participating in charitable gaming.
The question of what makes a charity a charity has been a recurring theme in North Dakota’s gaming discussion. According to Gaming Director Deb McDaniel, her office frequently gets complaints about which organizations truly qualify as charities.
In response, she explained that the proposed bill is designed to provide a clear framework to ensure that the state’s charitable gaming laws are used as originally intended. That is to support genuine charitable causes, not just any group that claims to be one.
Senate Bill 2035 faces opposition
This bill has been faced with opposition from a couple of bodies. That includes Teran Doerr, executive director of the Bowman County Development Corporation. Doerr requested that the Senate Judiciary Committee reconsider the bill. He has concerns about its potential impact on the development efforts of the Peace Garden State.
In a Bismarck Tribune publication, Doerr said:
I do believe that the language in Senate Bill 2035 is too subjective and creates some unnecessary uncertainty for organizations like ours.
According to Scott Meske, a member of the North Dakota Gaming Alliance (NDGA), when North Dakota authorized charitable gaming, the goal was to support local charities. Over the past two years, $73 million has been poured into community causes across the state. So, when lawmakers start debating who should be allowed to conduct these games, he thinks they’re focusing on the wrong issue.
There could be concerns about how charities are spending proceeds. If so, Meske suggests instead of limiting who can host games, the state should work together to address those concerns instead of creating limitations.
In a testimony of opposition that was addressed to Madame Chair Larson and Members of the Senate Judiciary Committee, Meske said:
On behalf of the members of the NDGA, we stand in opposition to Senate Bill 2035.
“Madame Chair and Members of the Committee, you will have several bills before you this session that, while on the surface look reasonable in their regulatory intent, yet when applied in blanket fashion across the state, merely hinder those charities that work to improve our communities, those organizations this activity supports. This was proven during the 2023 session with SB 2304. The legislative intent of a portion of that bill dealing with site authorization is not being interpreted as to what the intent of the legislature was. We just wanted to point that out because it happens, and that is what our main fear is with this bill. Intent vs. interpretation.”