MINOT — North Dakota’s laws around charitable gaming are absurdly loose. So much so that, especially after the gambling boom which has occurred since state lawmakers approved the use of electronic pull tab machines, some charitable causes have come to look like little more than fig leaves covering casino businesses.
It’s not at all unusual, now, to see charities — veterans groups, advocates for the disabled, and even youth sports organizations — buy up bars to protect turf for their gambling operations. We’re now left with a strange state of affairs in which a local wrestling club might own and operate several drinking establishments so that it can offer gambling to its patrons and generate revenues that are often far beyond the needs of the young wrestlers.
As bizarre and concerning as that is, it may be even stranger that a subsidiary of the North Dakota Horse Park bought a West Fargo bar to expand its gambling operations.
We now seem to have “charitable gaming” in which the charity in question is another gambling operation.
“Rookies was acquired by AB & D Hospitality LLC, a wholly owned subsidiary of the Horse Park of North Dakota,”
Brina Beyer reported this week.
According to her story, “the funds generated from the gaming operations at Rookies will play a critical role in the horse park’s financial goals, helping pay down special assessments and eventually funding a new, year-round building at the track.”
The park’s operations rely heavily on North Dakota’s statutory pari-mutuel wagering framework. State-regulated Advanced Deposit Wagering licensing fees and race-purse funds managed through the state generate about 30%–40% of the racetrack’s operating budget.
The premise behind charitable gambling has always been that its revenues would be directed to the public good. Charities can generate more money and help more people. But our current laws defining what constitutes an eligible charity are wide open.
According to section 53-06.1-01 of the North Dakota Century Code, the types of organizations that can operate gambling are public safety groups (like volunteer fire departments), fraternal and civic organizations (like the Eagles or SERTOMA), veterans groups, education organizations (like private schools), churches and other religious groups, charities aimed at helping the poor or disabled, and, finally, a catch-all category called “public-spirited” organizations.
Would it surprise you to learn that most of the organizations running gambling in North Dakota fall under that last, generic category? Last year, in 2025, Deb McDaniel, the head of the state’s Gaming Division who has since retired, told me that more than 48% of all gaming organizations were authorized under this category.
And it was growing quickly.
“Our office used to receive only one or two applications a year,” she told me at the time. “Now, with e-tabs, we are looking at a steady stream of applicants.”
The North Dakota Horse Park does claim to fulfill other functions outside of betting on horse races, such as equine education, but it is dependent on gambling to survive, and is now expanding its gambling operations to generate more revenue to support its existing gambling operations.
And we’re to believe that this is charitable.
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