Council narrows new gaming site rules but keeps 75% residency requirement with exemptions

The Grand Forks City Council on Aug. 18 approved an ordinance amendment governing gaming site authorizations that generally requires eligible charitable organizations to have 75% of staff and board members residing in Grand Forks or Polk County, but the council adopted two exemptions: the 75% requirement does not apply if an eligible organization owns the real property of a single site in the city, and it does not apply to one‑time or single‑event site authorizations such as raffle events.

Don Santor, representing the North Dakota Association for the Disabled (NDAD), addressed the council during citizen comment and warned the 75% rule as initially drafted would force NDAD to cease gaming operations at its local location, the Southgate Casino Bar and Grill. “The outcome of losing our Grand Forks site means dozens of jobs lost, 2,000,000 in wages gone, and most importantly, it would strip away essential services from the people who need them most,” Santor said, adding that the organization had operated charitable gaming in Grand Forks since 1984 and that gaming revenues were used to fund statewide services.

Vice President Weigel moved an amendment that would exempt an organization that owns the bar where it operates from the 75% residency requirement for a single site; the council added a second exemption for single‑event site authorizations after staff raised concerns such a rule might unintentionally exclude statewide organizations that need site authorization for specific fundraising events. City staff explained the 75% rule applies to both employees who work on the charitable mission and board members who decide distributions; the proposed exemption for a single owned property would not apply if an organization owned more than one location.

Council members expressed two competing priorities: preventing outside organizations from buying multiple sites to establish gaming operations while preserving the ability of local nonprofits that already own a site to continue operations. “I’m just worried that we’re shooting ourselves in the foot if there’s a future nonprofit that wants to come to the state … I’m gonna be voting no on this,” said Miss Berg, who cast the sole dissent in the final vote. After discussion, the council approved the ordinance amendment 6–1 (Berg dissenting).

City staff said they will incorporate the exemptions in the drafted ordinance language and that the policy change will be advanced per the city’s ordinance process. Don Santor’s public remarks were entered into the record and councilmembers acknowledged the potential local impact on NDAD and other charities that rely on gaming revenue.