North Dakota debates e-pull tabs machines, gambling revenues and more

North Dakota is a state that loves gambling but in doing so, it may have enabled certain operations that are not exactly cleared under the existing law. Responding to those concerns the North Dakota Gaming Commission recently ordered pull-tab machines at various venues to take a time-out.

The measure concerns those gaming machines that are located outside of casinos, including liquor, grocery, and convenience stores. It was a close vote with 3 to 2 commissioners in favor of the measure. Internal debate is still going on, but there seems to be a breakthrough in realizing that gaming machines may need to be brought under tighter control.

Many convenience stores have used the rather ambiguous gambling law in the state to start offering such electronic machines, acknowledging that they have been an important part of their business. It’s big money too with at least $1.3 billion spent on these machines in 2021 alone. But, things are even better if you own such machines in 2022, as gamblers are likely to spend close to $1.8 billion.

Meanwhile, the state received some $25.5 million in various gambling taxes in 2020, when the last publicly available data has been published. Even charities have jumped on the bandwagon, sponsoring various gambling machines and tables in order to get extra funding for their respective operations.

But the main rub that North Dakota faces right now is that it lacks a proper way of sending money from gambling tax to addiction services, which means that there is a vacuum for adequate help when it comes to problem gamblers, and it’s the main objection used when calls for expanded gambling are heard. The North Dakota Gambling Commission allocates some $320,000, but this is it.

So, where does this put North Dakota? The state already allows sports gambling in its tribal casinos and it’s openly flirtatious with expanding gambling further. A possible solution though is being discussed right now as the North Dakota Legislature wants to see charitable gambling allocate some $40,000 annually to help treatment programs.

But there are other interests to consider as well. Deb McDaniel, the state’s gaming director, said that while these e-pull tabs may seem like a good idea at first glance, they may also lead to tribal casino revenues losing 60% of their revenue.

Tribal casinos reminded the state that they are one of the top employers and already fund numerous programs across the state. Encroaching their business through poorly-regulated gambling venues may not be a good idea for anyone, they argued.

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