North Dakota Contemplates Centralizing Gambling Regulation Under Attorney General

In a move to potentially restructure the oversight of gambling activities, North Dakota legislators are evaluating a proposal to dissolve the state’s Gaming Commission and transfer its regulatory responsibilities to the Attorney General’s Office. Senate Bill 2224, introduced on January 20, 2025, seeks to amend section 53-06.1-01.1 of the North Dakota Century Code, effectively abolishing the Gaming Commission and granting the Attorney General authority to ister and regulate gaming.

Legislative Progress and Intent

The Senate Judiciary Committee recently endorsed the bill with a narrow 4-3 vote, signaling a step forward in the legislative process. Proponents of the bill argue that eliminating the Gaming Commission would streamline the regulatory framework, reducing redundancy in governmental oversight. Senator Janne Myrdal, R-Edinburg, the bill’s primary sponsor, emphasized the importance of evaluating the necessity of various state boards and commissions. She noted that concerned parties believe the Gaming Commission’s duties, though diligently executed, represent an additional layer that could be removed to simplify the gaming industry’s regulation.

Presently, the Gaming Commission operates as an independent body with appointed by the governor. Its role includes reviewing and approving istrative rules related to gambling, which are initially developed by the Attorney General’s Office. Once the Commission approves these rules, they proceed to the istrative Rules Committee, composed of legislators, for final adoption. This multi-tiered process is designed to ensure comprehensive oversight and checks and balances within the state’s gambling regulation.

Operational Challenges and Proposed Changes

Deb McDaniel, North Dakota’s Director of Charitable Gaming, highlighted operational challenges faced by the Gaming Commission, particularly issues stemming from unfilled positions. The Commission requires all five to be present to approve regulatory changes; however, it has struggled to maintain a full . The last meeting with all seats occupied occurred on January 1, 2023. Since then, at least one vacancy has remained, and currently, two positions are unfilled. These vacancies have stalled necessary istrative rule changes, as the Commission cannot function effectively without a complete roster.

McDaniel suggested that dissolving the Commission would not significantly impact the workload of the Attorney General’s Office. She stated that, by law, the Commission’s role is to promulgate istrative rules, a function that could be absorbed by her office if the Commission were eliminated. This change could potentially expedite the implementation of regulatory updates that are currently delayed due to the Commission’s incomplete hip.

Despite arguments favoring the bill, representatives from the gambling industry have expressed apprehension about consolidating regulatory power within a single office. Scott Meske, a lobbyist for the North Dakota Gaming Alliance, cautioned that removing the Commission could set a concerning precedent by centralizing authority. He emphasized the importance of maintaining checks and balances, reflecting the founders’ intent to prevent excessive power concentration in any single entity.

In response to these concerns, McDaniel assured that, even without the Gaming Commission, the istrative Rules Committee would continue to provide oversight. Additionally, the public and industry stakeholders would retain opportunities to offer input on rule changes before their finalization, ensuring that the regulatory process remains transparent and inclusive.

Next Steps

Senate Bill 2224 is scheduled for debate on the Senate floor, where North Dakota. As the state continues to assess the efficiency and necessity of its various boards and commissions, the proposal to centralize gambling oversight under the Attorney General’s Office represents a significant consideration in the broader discussion of governmental reform.

Source:

”North Dakota bill looks to dissolve gambling oversight commission”, cdcgaming.com, January 28, 2025.