BISMARCK — North Dakota may eliminate its Gaming Commission and place all authority to regulate gambling with the state Attorney General’s Office if a proposed bill moves forward.

The Senate Judiciary Committee on Tuesday gave a do-pass recommendation on

Senate Bill 2224

by a vote of 4-3. The bill seeks to streamline the gambling regulation process by eliminating the state Gaming Commission. Several legislators questioned what benefit the Commission provides, but the gambling industry warned the bill would remove key checks on the attorney general’s power.

The Gaming Commission is an independent entity whose members are appointed by the governor. The Commission acts as an added buffer between the Attorney General’s Office and the Administrative Rules Committee comprised of legislators.

“Gov. Armstrong mentioned all the boards and commissions and things that we have in our state, and how we need to look at which ones are pivotal for the functioning of our government and which ones are not,” Sen. Janne Myrdal, R-Edinburg, the primary sponsor of the bill, said in committee.

“This came to me from some concerned entities that felt like this particular commission in its duties — which they faithfully execute, obviously — is really a step that we can eliminate in the gaming industry.”

Charitable gambling generated roughly $220 million in revenue in North Dakota as of 2022, and $35 million in tax revenue for the state.

The current flow of gambling regulation in North Dakota starts with the state Attorney General’s Office, which crafts administrative rules regulating the gambling industry. Any proposed rule changes must be looked at by the Gaming Commission, which approves or denies and sends the rules back to the Attorney General’s Office. The Attorney General’s Office then sends the proposed rules to the Administrative Rules Committee where they are finalized and adopted.

North Dakota Director of Charitable Gaming Deb McDaniel said the removal of the Commission would not impact the amount of work the state Attorney General’s Office is responsible for.

“I’ve always worked with the Gaming Commission, and their role is to promulgate the administrative rules … by law,” McDaniel said. “I would just be able to promulgate them without them (the Commission.)”

McDaniel said that while the Commission itself does not hinder the work of her office, it can create situations that do. The Commission must have all five commissioners to meet and approve rules from the Attorney General’s Office. The last time they were able to do so was Jan. 1, 2023.

Since then, there has been at least one vacancy on the Commission — there are currently two — that Gov. Doug Burgum did not fill before leaving office and Gov. Kelly Armstrong has yet to fill.

Until the vacancies are filled, McDaniel is stuck in limbo, unable to make administrative rule changes to regulate the gambling industry.

The gambling industry expressed concern about the elimination of the Commission, saying it provides a beneficial check on the attorney general’s power to govern the industry.

“Our founders knew that it would be a bad idea to give too much power to one single body,” Scott Meske, a lobbyist for the North Dakota Gaming Alliance, said. “That’s kind of what Senate Bill 2224 does; giving 100% of the oversight and regulation to one office. We think the attorney general has done a fine job in overall regulating this industry as it’s grown and changed and morphed over the past few years. But taking away this level of checks and balances is — just sets a very precarious precedent.”

McDaniel said even without the Commission the rules would still need to be finalized by the Administrative Rules Committee, and statute guarantees opportunities for the public — and industry — to provide comment on proposed rule changes.

The bill is expected on the Senate floor Wednesday.