Racing commission warns proposed change to dog wagering could drain commissions' revenue and threaten racing operations

Bruce Johnson, executive director of the North Dakota Racing Commission, told the House Appropriations Government Operations Division that revenue for the commission and for live racing in the state depends heavily on out‑of‑state account deposit wagering (ADW) companies and that Senate Bill 2,384 could cause some ADWs to exit North Dakota, sharply reducing funds that support the state’s racing programs.

Johnson said the commission licenses roughly 16 ADW companies that handle pari‑mutuel wagering on horse and dog racing; several ADWs rely significantly on greyhound (dog) racing revenue. Although North Dakota has no live greyhound tracks, Johnson said simulcast facilities at four in‑state venues (Williston, Grand Forks, Fargo and a casino site) offer dog‑race wagering that contributes to ADW revenue streams. He said eliminating the dog‑wagering component of ADW business — a change the commission believes SB 2,384 would bring — could cost the commission about $250,000 per year across the funds it manages and roughly a half‑million dollars on a biennial basis; he also warned that if ADW companies depart the state the revenue loss would be larger and harder to quantify.

Why this matters: the Racing Commission uses license fees and ADW‑generated revenue to fund three special accounts (promotion, purse and breed funds), to license participants, and to support two live racing venues — Chippewa Downs in the Turtle Mountain (Belcourt) area and the North Dakota Horse Park in Fargo. Johnson said those funds are largely exhausted after prize payments and track support each season, making the commissions’ revenues sensitive to any loss of ADW handle.

Key points from testimony and committee questions: - Funds and operations: Johnson said the commission returns net revenues to the state over multiple biennia and that much of the commission’s operating support depends on licensed ADW activity. He described returning more than appropriated amounts to the state in several prior biennia and said the current biennium is tracking similarly, absent legislative changes that would affect ADW business. - SB 2,384 concern: Johnson characterized SB 2,384 as a bill that — in part — would change how e‑gaming and related wagering products are regulated and said three lines in that bill would eliminate dog race wagering from the state’s ADW marketplace; he said several ADWs have told the commission they would leave North Dakota if dog wagering were removed, taking horse‑race business and license revenue with them. - Scale and local activity: Johnson estimated ADW licensing in North Dakota at about 16 companies; simulcast dog wagering is available at four in‑state facilities. He told legislators the simulcast dog wagering by itself accounts for under 1 percent of overall statewide wagering volumes but is critical to ADW companies' business models that combine multiple products. Johnson said commission breed and purse funds are largely depleted after distributions each season. - Live racing program: The commission supports two live tracks in North Dakota (seasonal runs June–July): Chippewa Downs (Belcourt/Turtle Mountain area) and North Dakota Horse Park (Fargo). The commission provides stewards, a state veterinarian, licensing and some purse and promotion support; it also runs an internship program that places college students in accounting, licensing and track operations roles.

Committee members asked for more detail on fund balances, the number of licensed ADWs and the economic link between dog wagering and ADW companies’ willingness to remain licensed in North Dakota. Johnson said he would provide exact fund balances and additional figures on simulcast revenue and ADW contributions. The committee elected to hold the Racing Commission budget on the worksheet pending resolution of SB 2,384 and requested Johnson return with precise numbers and fund balances for further review.

Ending: No appropriation vote was taken at the hearing. The committee said it would delay final action on the Racing Commission budget until the Legislature determines the fate of SB 2,384, which Johnson and several committee members described as potentially decisive for the commission’s revenue outlook.