Charitable Gambling Requirements Under Review in North Dakota

A newly proposed bill in North Dakota may restrict organizations from qualifying for charitable gambling.

Senate Bill 2035 Picks Up Speed

The proposal, Senate Bill 2035, seeks to revise the definitions for “public-spirited organizations” and educational organizations that are permitted to offer charitable gambling activities. Last week, the proposal was introduced and has undergone a first reading in the Senate.

Then, on Monday, Senate Bill 2035 reached the Senate Judiciary Committee. As announced by the North Dakota Monitor, the bill faced strong opposition during its latest hearing.

Currently non-profit organizations registered with the Secretary of State’s Office in North Dakota, which have been operating for two years within their relevant field, can qualify to conduct charitable gambling. Data from the Attorney General’s Office confirms that in fiscal year 2025, there were 337 organizations eligible to offer charitable gaming across the state.

A breakdown of the total shows that organizations that fell in the “public-spirited” category were 160. On the other hand, the remaining non-profit organizations eligible to conduct charitable gaming included different clubs and groups, like veterans’ groups for example.

Despite the opposition, the proposal picked up speed after a 5-2 vote. Senate Bill 2035 was permitted to advance with a do-pass recommendation. As with any bill, further changes to the language may be introduced at a later stage, possibly eliminating potential concerns related to the text of the proposal itself.

“A Bill for an Act to amend and reenact subsections 7 and 21 of section 53-06.1-01, subdivision a of subsection 1 of section 53-06.1-03, subsection 2 of section 53-06.1-10.1, and subdivision c of subsection 2 of section 53-06.1-11.1 of the North Dakota Century Code, relating to the definitions of an educational organization and public-spirited organization, and raffles; and to provide for application,“

reads Senate Bill 2035

The Proposal’s Opponents Voice Their Concerns

Teran Doerr, the Bowman County Development Corporation’s executive director, is among the opponents of the new proposal. Criticizing the clarity of the bill, the executive said: “I do believe that the language in Senate Bill 2035 is too subjective and creates some unnecessary uncertainty for organizations like ours.”

The tourism authority that helps promote engaging visitor experiences, the Bismarck-Mandan Convention & Visitors Bureau, is also among the critics of the new proposal. The Bureau’s CEO, Sheri Grossman, spoke about the importance of gambling activities for the organization’s budget.

She explained: “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.” According to Grossman, the removal of the valuable funding derived from gaming would be devastating for the organization that won’t be able to organize events such as the Fourth of July fireworks.

The speed the proposal recently gained doesn’t guarantee its passage. Still, it will be up to North Dakota lawmakers to amend, approve or ultimately shut down the proposal that may limit the organizations that may qualify for charitable gaming.