A growing number of North Dakota charities are purchasing bars and restaurants outright in order to secure permanent locations for electronic pull tab machines, rather than competing each year for limited space. With roughly 340 charitable organizations competing for only 940 available e-tab sites statewide, placements have become highly competitive in some markets, and the North Dakota Gaming Alliance has identified 22 charities now tied to business ownership, about 2 percent of all gaming-dependent charities in the state.
Charitable gaming remains a significant revenue source for North Dakota nonprofits, generating an estimated $2.5 billion in gross proceeds last year, with roughly $230 million of that from e-tabs alone. State lawmakers are currently reviewing whether this trend calls for updated legislation.
This is a developing issue for the hospitality industry, and NDHA is continuing to monitor it as the legislative and regulatory conversation evolves. For more background, see this explainer from KFYR-TV and this opinion column from The Forum.
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