North Dakota tribes, charities at odds over online betting rights

North Dakota State Capitol, featuring an Art Deco tower – CC BY-SA

North Dakota’s five tribes have demanded a new compact for exclusive rights to North Dakota-originated sports betting and internet gambling, prompting representatives of the state’s charitable gambling to protest.

The tribe claimed that the Las Vegas-style pull tab devices used by the charities have harmed the tribes’ casinos. Meanwhile, the charities’ representatives objected to the request from the tribes as it would put a stop to charitable gambling, one of the state’s representatives told Gov. Doug Burgum.

According to reports, during a public hearing at the state Capitol, both representatives of the state’s five tribes and those in support of the charitable gambling sector sparred over their demands.

If the five tribes’ demands were satisfied, mobile phone bettors in North Dakota could place bets that would be routed through the computer server on tribal territories, as reported by Associated Press.

Rhonda Counts, a Sky Dancer Casino employee, claimed that since e-tabs became available online, the casino where she works has been forced to close some of its gaming options and lay off some employees.

According to Counts, granting the demands of the five tribes will only help reduce the losses caused by e-tabs.

“We are not able to compete with the e-tab machines,” Counts said.

The number of casino employees has reportedly decreased from an average of around 450 to only between 250 and 300 since charitable gaming was permitted to operate in North Dakota and offer e-tabs in 2017.

“We’re not winning with e-tabs,” Counts added. “That’s our main source of employment on our reservation.”

Deb McDaniel, as part of the North Dakota gambling regulator, disclosed that this year’s total gambling revenue—estimated at $75 million—has more than doubled from two years ago, especially in light of the rise in e-tab wagering.

However, according to the commander of a VFW post Matt Jameson, giving the tribes exclusive rights to online gambling and sports betting would be a severe blow to the business.

“Without veterans organizations, charitable gaming wouldn’t be here in North Dakota,” Jameson said.

Gov. Burgum said that the compacts’ terms would be finalized by the end of next month.