Gaming Update June 2013

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1 North Dakota Gaming Update June 2013 This Issue: Summary of Legislative Changes 2 List of Licensed Distributors 3 List of Licensed Manufacturers 3 Tribal/State Gaming Compacts 3 Seeking Gaming Advisory Board Members 4 Gaming Activity Up 4 Training Schedule 4 Changes to Games of Chance Law Books 5 Employee Acknowledgement Helpline B Gaming Employees B The Gaming Update newsletter is published quarterly. Current and previous issues are available for download at no charge, at ag.nd.gov/gaming/gaming. htm. Reduced Gaming Taxes Approved The Conference Committee appointed to work out the differences between the Senate and House versions of Senate Bill No ultimately agreed on a two-tiered progressive gaming tax rate which taxes gross proceeds for licensed organizations at graduated rates as follows: Organizations with gross proceeds not exceeding $1,500,000 are taxed at 1% of the gross proceeds (increased from $500,000 in the previous gaming tax rates); and Organizations with gross proceeds exceeding $1,500,000 pay $15,000 ($1,500,000 x 1%) plus 2.25% on gross proceeds exceeding $1,500,000. The previous 1.5% and 2% gaming tax rates which applied to some organizations has been eliminated and the 2.5% maximum tax rate was reduced to 2.25%. The fiscal impact of this bill has been estimated at a $3 million reduction in gaming taxes to the gaming industry in the biennium and $3.4 million during the biennium. The small difference between the two biennia is because the change, which takes effect on July 1, 2013, still requires gaming organizations to pay at the old gaming tax rates for the first quarter collected during the next biennium (April June 2013 quarterly gaming taxes are due on July 31, 2013). Currency Validators - Violations Some currency validators for pull tab dispensing devices may be validating currency in excess of the $50 maximum allowed under the administrative rules. Several distributors have been contacted by the manufacturer to correct this potential problem, but organizations should be aware of this restriction which is outlined in the manufacturer s chapter (NDAC (1).

2 Summary of Legislative Changes Five gaming related bills were passed and one additional bill was defeated in the 2013 legislative session. The gaming tax reduction bill and Attorney General s appropriation bill will take effect on July 1, The remaining three bills will become effective on August 1, HB 1003 Attorney General s Office and State Gaming Commission s Appropriation Bill. The State Gaming Commission s budget of $7,368 for the biennium was approved. This is the same amount appropriated during the previous biennium. The bill also approved $510,000 in gaming tax payback grants to assist local cities and counties with gaming enforcement. The effective date of the appropriations for the State Gaming Commission and the gaming tax payback is July 1, HB 1241 Amendment Relating to Possession of a Firearm or Dangerous Weapon in a Gaming Site. This bill was decided in conference committee. Effective August 1, 2013, an individual who enters or remains in a bar or gaming site at which bingo is the primary gaming activity while in the possession of a firearm or dangerous weapon is guilty of a class A misdemeanor. The law excludes certain individuals including a law enforcement officer, the proprietor or their employee, a designee of the proprietor displaying an unloaded firearm that is a prize for a raffle or auction, and private security personnel while on duty. HB 1294 Removes the Governor as the Primary Negotiator for the Tribal/State Gaming Compacts. This bill would have replaced the Governor with Legislative Management or their designee as the primary negotiator of any future Tribal/State Gaming Compacts. The bill was ultimately amended by the Senate and failed on a vote of SB 2163 Changes the Current Gaming Tax Rates. This bill modified the existing gaming tax rate structure and provided further gaming tax reductions for the 30 largest gaming organizations in the state. See separate article on the new gaming taxes on page 1 for more details. The effective date is July 1, SB 2177 Increases the Maximum Rent Allowed for Pull Tabs if Twenty-one and Paddlewheels are not Conducted at a Site. The maximum amount of rent for a pull tab site that an organization may pay to a bar owner when bingo is not the primary game and twenty-one and paddlewheels are not conducted increased to $400, whether played in a jar bar, dispensing device, or both. Effective August 1, SB 2311 Maximum Cash Prize Limits for Raffles. This new provision of section (Raffles) eliminates the $4,000 maximum cash prize limit for raffles conducted by publicspirited organizations that support amateur collegiate athletics, and is effective August 1, (2)

3 Distributors and Manufacturers The Office of Attorney General completed the license renewal process for Gaming Distributors and Manufacturers for the fiscal year April 1, 2013 through March 31, Below is a compiled list of all Licensed Gaming Distributors and Manufacturers for the current licensing year. List of Licensed Distributors NAME MAILING ADDRESS TELEPHONE Dakota Gaming Supply Inc E Ave F, Bismarck, ND (701) Western Distributing Co. PO Box 832, Bismarck, ND (701) Borchert Distributing LLC 811 8th Ave N, Fargo, ND (701) FPN Gaming 3317 Fiechtner Dr, Fargo, ND (701) Lien Games Inc 1113 Main Ave, Fargo, ND (701) Mr. Ed s Bingo & Casino Supply PO Box 848, Fargo, ND (701) Northland Gaming 6233 Martens Way, Fargo, ND (701) Plains Gaming Distributing PO Box 101, Fargo, ND (218) Central Gaming 2204 HWY 1806 S, Mandan, ND (701) Charitable Equipment of ND 2100 E Main Ave, West Fargo, ND (701) Chuck s Incorporated PO Box 490, Williston, ND (701) List of Licensed Manufacturers NAME MAILING ADDRESS TELEPHONE Arrow International Inc Clinton Road, Brooklyn, OH (216) B Squared Leasing LLC* th St S Suite B, Fargo, ND (701) Douglas Press 2810 Madison St, Bellwood, IL (708) Fortunet Inc Graphic Center Dr, Las Vegas, NV (702) International Gamco Inc N 48th St, Omaha, NE (402) Paramount Games Inc. 30 Mills Street, Wheatland, PA (724) Planet Bingo LLC Gerald Ford Drive, Palm Desert, CA (760) Pollard Games Inc./American th Avenue, Council Bluffs, IA (712) Technik Manufacturing Inc.* th St, Columbus, NE (402) Universal Manufacturing Co Deramus, Kansas City, MO (816) Video King & Power Bingo 2717 N 118th Circle # 210, Omaha, NE (402) World Wide Press 801 River Drive S, Great Falls, MT (406) * (Pull Tab Dispensing Device Manufacturers Only) Tribal/State Gaming Compacts The Department of Interior formally approved all of the new Tribal/State Gaming Compacts on March 11, Copies of the approved compacts are available online at under the Gaming link. (3)

4 Seeking Gaming Advisory Board Members The Office of Attorney General is seeking individuals to serve on the Gaming Advisory Board. The two-year terms of all current members expire on June 30, Since 1985, the Gaming Advisory Board has provided guidance and invaluable assistance to the Gaming Commission and Office of Attorney General on many regulatory policy issues, in revising the gaming rules and recommended law changes. The Gaming Advisory Board meets a few times each year as needed. The meetings usually are one-half to one day in length and are normally held in Bismarck. Members serve on a voluntary basis and are not reimbursed for expenses unless they are also members of the legislature. If you are interested in volunteering to serve on the Gaming Advisory Board, please notify this office in writing no later than June 30, Gaming Activity Up Over $75 million was wagered on charitable games of chance for the quarter ended December 31, Charitable gaming was up by 2.9% or $2,159,746 when compared to the same quarter in The largest increases were in twenty-one with an increase of $1,111,806 or 5%, pull tab dispensing devices with an increase of $960,393 or 5.4%, and pull tabs with an increase of $309,927 or 1.4%. For the calendar year ended December 31, 2012, the charitable gaming industry had gross wagers of just over $300 million. This was the second highest calendar year ever with gross wagers just slightly behind the $304 million wagered during calendar year ended December 31, Quarterly gaming activity reports for the past eight quarters are available online at gov on the Gaming link. Training Schedule The Gaming Division will be conducting training sessions in two major cities during the month of August 2013: Fargo - Tuesday, August 6, 2013 Bismarck Tuesday, August 13, 2013 These training sessions relate to the administrative rules which took effect on July 1, 2012 and are offered for those who were unable to attend training sessions held last summer (August 2012). Pre-registration is required and limited to four individuals per organization. Class sizes are limited and registration will be taken as received. A pre-registration form is enclosed and also can be downloaded at on the Gaming link. According to N.D.A.C (1) a gaming manager and an employee who is principally responsible for auditing closed games, daily activity, or does bookkeeping and has no previous gaming-related experience in those capacities shall request training from the attorney general within thirty days of employment. The training must include the gaming law and rules, recordkeeping, internal control, and tax return. (4)

5 Changes to Games of Chance Law Books The Office of Attorney General is reprinting the cover page and selected pages of the law section of the North Dakota Games of Chance Laws and Administrative Rules book. The revised cover and replacement pages will be distributed to all organizations that had previously ordered the mustard yellow law and rule books. A revised copy of the law is available online at on the Gaming page under Rules and Regulations. Set B Booklet - Selected Sections of the Laws and Rules for Dispensing Device Sites The smaller Set B booklet containing select sections of the laws and rules related to dispensing device sites will not be reprinted at this time because of the minimal law changes affecting this booklet. Please make the following changes on Page 2 of the Law section of Set B with strikethrough (xxx) language eliminated and underlined (xxx) language added as follows: Gross proceeds Allowable expenses Rent limits. 5. For a site where bingo is not the primary game: b. If twenty-one and paddlewheels are not conducted but pull tabs is conducted involving either a jar bar or dispensing device, but not or both, the monthly rent may not exceed two hundred seventy-five four hundred dollars. If pull tabs is conducted involving both a jar bar and dispensing device, the monthly rent for pull tabs may not exceed three hundred dollars. Also, the cover of Set B should be temporarily changed with a strikeout of the year and replaced with the year 2013 as follows: CHAPTER OF THE NORTH DAKOTA CENTURY CODE EFFECTIVE AUGUST 1, Employee Acknowledgments An updated Employee Acknowledgment form is enclosed and is also available through our office s web page at Based on the revisions of the gaming taxes by the 2013 legislative assembly, section (Gaming tax Deposits and allocations) of this form should be reviewed by the gaming manager and bookkeeper positions. Although the rules require these employees to review all provisions outlined on this form, particular attention should also be given to the changes made to subsection 5 of section (Gross proceeds-allowable expenses-rent limits) to understand the new maximum rent amount for pull tab sites only. See page 2 regarding Senate Bill No for the new maximum rent amount for more details. A new Employee Acknowledgment form should be completed by the gaming manager and bookkeeper prior to August 1, (5)

6 Office of Attorney General Gaming Division 600 East Boulevard Avenue Dept 125 Bismarck, ND Official Mail State of North Dakota Return Service Requested 211 Helpline The 211 Helpline is a 24 hour statewide free phone service with specialists offering supportive, nonjudgmental listening ears and also providing information about community support programs. This service provides, but is not limited to helping with suicide prevention, addiction support (including gambling addictions), assistance services during disasters, locations of emergency shelters, and information regarding financial & food assistance, as well as linking volunteers with nonprofit organizations. For additional information on the 211 Helpline, visit Gaming Employees Lynn Henke joined the Gaming Division on June 3, 2013, as an audit technician responsible for tax return processing. Lynn was most recently employed as an office manager with a local chiropractor. The audit technician position became available when Beth Leintz transferred to the licensing section to work with Missy Tesky. The Gaming Division welcomes Lynn and congratulates Beth on her promotion to the licensing section.

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