North Dakota State Gaming Director Deb McDaniel recently asked state legislators for addition staff since she expects the growth of electronic pulltab machines will lead gamblers to wager $1 billion during the current two-year budget cycle. McDaniel said the introduction of electronic pulltab devices about a year ago and recent budget cuts have put pressure on her office. Currently it has 12 full-time employees, but McDaniel said she’ll need “at least” twice as many to properly regulate gambling operations.
State lawmakers approved electronic pulltabs during the 2017 session. As of August 31, nearly 2,000 electronic pulltab machines were operating in 524 sites, conducted by 183 charitable gaming organizations, McDaniel said. The machines are found in 210 cities and all but five counties in the state. Gross proceeds increased from more than $569 million in 2015-17 to an estimated $841 million in the 2017-19 budget cycle, which ended in June, according to state figures.
Charitable Gaming Association of North Dakota President Janelle Mitzel said charities have enjoyed higher proceeds to be used for their missions, but their tax bills have effectively tripled due to a tax structure “flaw” related to electronic pulltabs. “While electronic pulltabs may be providing a small windfall to the state, it is robbing charitable organizations of revenue that would be put to better use in our local communities supporting these organizations and their missions,” Mitzel said.
