North Dakota May Legalize Sports Betting Outside of Tribal Lands

The Bismarck Tribune reported that House Concurrent Resolution 3002 was submitted for hearing to the House Judiciary Committee by Fargo representative Greg Stemen. The resolution proposes an amendment to the North Dakota constitution allowing for sports betting to be offered across the state and to be regulated and licensed by it.

A Change in Constitution Is Subject to Public Vote

If the proposed measure is approved by a vote in the Senate it will be subjected to a public vote during the general elections in November 2024. A change to the North Dakota state constitution requires a public vote in order to be implemented.

So, North Dakota residents will have the final word on whether they want legalized sports betting available in the state or not. In case the measure is approved during the public vote, then lawmakers shall have to work on legislative changes that will allow for the launch of regulated sports betting in North Dakota.

So far the House Judiciary Committee has recommended that the resolution should not be passed, however, it will still be subject to a vote in the Senate where the final decision will be made.

Illegal Sports Betting Already Present in North Dakota

Fargo representative Greg Stemen has highlighted that state residents are already enjoying sports betting but they are doing so illegally and without any regulation. Stemen elaborated further in a statement made to The Bismarck Tribune: “If it’s already happening, let’s regulate it, let’s provide oversight, let’s put consumer protections in place and allow legitimate American gaming entities to partner with the state, and so that the people who are doing it have some protections built in.”

Stemen further added that the legalization of sports betting could bring a lot of funds in the form of tax revenue. He suggested that a tax rate of 10% is a common practice, which means that the North Dakota state budget may benefit from revenues of $3.5 million per year.

According to estimations based on data compiled by the American Gaming Association, around 138,000 residents of the states are active gamblers that are placing bets amounting to more than $300 million per year. All of these wagers go to offshore sports betting operators, which are based out of counties such as Panama and Latvia, among others.

Despite the benefits pointed to by Stemen, there is opposition to the legalization of sports betting in North Dakota. Mark Hagerott, the North Dakota University System Chancellor, has expressed an opinion that he is not in favor of the legalization as gambling compromises the integrity of sports and is going to affect the lives of students in a negative way.