The rapid proliferation of electronic pull tabs has ignited a debate in North Dakota, sparking discussions about the future of charitable gambling within the state and the need for effective regulation of these Las Vegas-style gaming machines.

Senator Myrdal Pushes for Clarity in North Dakota’s Gambling Laws

Functioning similarly to traditional slot machines, the electronic pull-tab machines made their debut in 2018 after receiving approval from the Republican-controlled Legislature.

Addressing the concerns on e-tabs appropriate locations and operators, Republican State Senator Janne Myrdal, who chairs an interim legislative panel responsible for a comprehensive yearlong study of charitable gambling issues, emphasized the importance of aligning with the original intent of the state’s laws. She explained that certain things had gone off course and that they were beyond the scope of what the state laws were meant to cover.

Myrdal expressed her hope that the study’s outcomes would provide practical solutions by the next legislative session scheduled for 2025, reported the Associated Press. She particularly highlighted the significance of determining appropriate locations for these electronic gambling machines.

In July, North Dakota’s Attorney General, Drew Wrigley, reached a settlement with three gambling equipment distributors, namely Western Distributing Company, Plains Gaming Distributing Inc., and Midwest Gaming Distributing Inc. These distributors were accused of breaching the state’s charitable gambling regulations, resulting in a $125,000 fine. 

Legislators Raise Concerns Over E-Tab Expansion in North Dakota

During this year’s legislative session, lawmakers voiced worries about the presence of these machines in certain establishments, especially gas stations, which could potentially allow minors access to e-tabs. The widespread distribution of these machines, with over 4,700 units across the state, has also raised concerns regarding tribal nations’ interests, the regulation of these devices, and the potential for money laundering.

In the last fiscal year ending on June 30, e-tabs generated nearly $2 billion in gross proceeds from cash and replayed winnings, contributing $205 million to various charitable causes, including just over $72 million earmarked for specific charitable purposes. 

While state law traditionally did not dictate the locations for charitable gambling, e-tabs began appearing in select gas stations and convenience stores due to a liberal interpretation of the term “alcoholic beverage establishment.” 

To address this issue, the bill initiating the study provided a revised definition, excluding gas stations, convenience stores, grocery stores, and liquor stores. However, this new definition fails to account for other establishments, such as hair salons and indoor golf centers, which can serve and dispense alcohol.

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Visitors to Deadwood, South Dakota are in for a treat, after Hard Rock International celebrated the opening of its newest boutique hotel and casino, offering different entertainment and hospitality options. A grand ceremony, commemorating the opening of the Rocksino by Hard Rock, took place earlier this week. The glamorous event saw the participation of the state’s governor, leaders of the Seminole Tribe of Florida and the South Dakota Sioux tribes, along with music stars and many guests.

The new Rocksino brings iconic Hard Rock hospitality, offering a boutique hotel and casino. The venue is slightly smaller in size than the usual Hard Rock resort properties, but it is still packed with entertaining options, including music memorabilia, a full-service restaurant and a bar that offers craft cocktails.

Not unexpectedly the Rocksino offers gambling entertainment as well and visitors can play 86 new slot machines. As with other such entertainment locations, a Rock Shop is also available where visitors can purchase custom apparel from Hard Rock Deadwood. Judging by a statement released by Hard Rock, later this year, the property will open its renovated luxury guest rooms.

Celebrating the grand opening ceremony, Hard Rock Deadwood made a donation of $40,000 to the Oglala Sioux Tribe Veterans Shelter. The generous contribution came from the Hard Rock Heals Foundation in collaboration with the Willie G. Invitational Golf Tournament.

Besides the donation, the opening ceremony included Hard Rock’s popular Guitar Smash where 22 individuals appeared on stage, smashing guitars. However, Big Kenny, from the country music duo Big & Rich, explained that the smashed guitars weren’t real guitars but rather Hollywood props. He outlined that thousands of real guitars are donated by Hard Rock to different communities around the globe.

Deadwood Expands Entertainment Options

David Ruth, Deadwood’s Mayor, praised the efforts of Steve Slowey and Marc Oswald, which helped deliver the iconic Hard Rock brand to one of the most popular Wild West towns in the US. “As a community famous for entertaining guests since 1876, Deadwood is excited to welcome Rocksino by Hard Rock Deadwood as our newest, can’t-miss property,” he said. Finally, Ruth pointed out that the new Rocksino will fit well with the region and deliver supreme experiences for its visitors.

“Our rich, Old West history combined with the Hard Rock brand will enhance the Deadwood experience for which we are known for. The Rocksino by Hard Rock Deadwood is sure to be an additional gem luring visitors to this amazing town.“

David Ruth, Mayor of Deadwood, South Dakota

South Dakota Gov. Kristi Noem also attended the recent grand opening ceremony. She said that for years, different initiatives delivered unique experiences for visitors to Deadwood. Now, according to Gov. Noem, the new Rocksino will further expand the entertainment options available for visitors to the city.

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According to KX News, an amendment created by Sen. Larry Luick to remove universities, colleges, and high schools from House Concurrent Resolution 3002 failed by one vote of 24 to 23 earlier this week.

This means that the text of the resolution as it was originally presented will be subject to voting by the Senate. The purpose of the resolution is to place a constitutional measure that would give the green light to professional sports betting in North Dakota on the ballot in November 2024.

Changes in the Text of the Resolution

The amendment created by the Senate Judiciary on Wednesday would have changed the wording used by the legislative assembly from “shall” in regard to the authorization of sports betting to “may.”

The same amendment would have also added the phrase “to be conducted on professional sports” to the text. This would have helped guarantee that sports betting would not be allowed on the grounds of educational institutions.

Sen. Larry Luick, R-Dis. 25, Fairmount spoke about the “serious problems with mental health issues” recorded among athletes in universities, colleges, and high schools. He put the emphasis on matters like anxiety, depression, and mental exhaustion, describing them as “increasing intensively.”

The Senator also spoke about the way in which allowing gambling in schools would be a sure path to generating financial issues for students living on campuses where sports betting would be allowed.

Gambling on Certain Players Would Influence Players

Sen. Luick also took the opportunity to address the matter of players that might be influenced by social media to perform in a certain way on the field, depending on the bets placed on them.

Referencing prop bets which are side bets on sporting events that might negatively influence athletes in North Dakota, Sen. Luick gave the example of people harassing athletes and their families to generate a certain result for an upcoming match.

Sen. Scott Meyer, R-Dis. 18, Grand Forks spoke about the lack of a clear reference regarding high school or collegiate athletics in Resolution 3002, explaining how important it is to keep the constitution clean.

House Concurrent Resolution 3002 was sent for hearing to the House Judiciary Committee by Greg Stemen at the start of the year. In North Dakota, the Senate represents the upper house of the Legislative Assembly and it is smaller than the House of Representatives.

Ultimately, residents in North Dakota will have the final say on whether to allow sports betting outside of tribal casinos to become legal in their state or deny it.

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