North Dakota Bill Seeks to Eliminate the Gambling Commission
A bill in North Dakota seeking to eliminate the state's Gaming Commission has gained traction, with lawmakers considering whether gambling oversight should be consolidated under the authority of the state Attorney General's Office. Senate Bill 2224, which aims to streamline the regulatory process by dissolving the Gaming Commission, received a 4-3 "do-pass" recommendation from the Senate Judiciary Committee on Tuesday.
LISTEN TO THIS ARTICLE:The Gaming Commission, currently an independent entity with members appointed by the governor, functions as an intermediary between the Attorney General's Office and the Administrative Rules Committee, which consists of legislators. Supporters of the bill argue that removing this additional layer would simplify the regulatory framework, while opponents warn that such a move could lead to unchecked power concentrated within a single government office.
Related: North Dakota Lawmakers Nix Online Sports Betting ResolutionSen. Janne Myrdal, R-Edinburg, the bill's primary sponsor, indicated that the proposal aligns with broader efforts to evaluate the necessity of various boards and commissions in North Dakota. She noted that some concerned parties believe the commission's duties, while faithfully executed, add an extra step in gambling oversight that may no longer be needed.
Gambling has become a significant revenue source for North Dakota, with charitable gaming generating approximately $220 million in revenue as of 2022 and contributing $35 million in tax revenue to the state. The current regulatory process requires the Attorney General's Office to develop administrative rules for gambling, which then must be reviewed and either approved or denied by the Gaming Commission. The rules are subsequently forwarded to the Administrative Rules Committee for final adoption.
North Dakota's Director of Charitable Gaming, Deb McDaniel, stated that eliminating the commission would not increase the workload for the Attorney General's Office. She explained that while the commission serves as a legal step in the rulemaking process, its removal would allow her office to directly promulgate rules without requiring the commission's approval. McDaniel added that the commission itself does not obstruct regulatory functions but that its structure sometimes leads to inefficiencies.
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One such inefficiency stems from the requirement that all five commission members be present to approve regulatory changes. The last time the commission was fully staffed and able to meet was January 1, 2023.
Since then, vacancies have persisted, with two of the five seats currently unfilled. Former Governor Doug Burgum did not appoint replacements before leaving office, and Governor Kelly Armstrong has yet to do so. As a result, McDaniel has been unable to implement administrative rule changes, leaving some regulatory matters in limbo.
While proponents of the bill argue that the commission's elimination would resolve these bureaucratic delays, representatives from the gambling industry have expressed concern over concentrating regulatory power within the Attorney General's Office. Scott Meske, a lobbyist for the North Dakota Gaming Alliance, cautioned that shifting full oversight responsibility to a single government office could set a risky precedent. He acknowledged that the Attorney General has effectively regulated the industry in recent years but argued that removing a layer of oversight diminishes necessary checks and balances.
Despite these concerns, McDaniel emphasized that even without the commission, proposed gambling regulations would still require final approval from the Administrative Rules Committee. She also noted that public and industry input would remain part of the rulemaking process, ensuring opportunities for comment and feedback.
With the bill advancing out of committee, it is now set for debate on the Senate floor.
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