The Controversy Unfolds: Greyhound Bets and Horse Racing’s Fate

FARGO, N.D. — A legislative battle is brewing in North Dakota over a bill ostensibly aimed at curbing online greyhound racing, an activity already illegal within the state. However, opponents argue that Senate Bill 2348 could have devastating consequences for North Dakota’s horse racing industry and the ample revenue it generates.

The core of the issue revolves around Advance Deposit Wagering (ADW) companies, online platforms that allow individuals too place bets on horse and dog races from anywhere in the world. North Dakota, along with Oregon, stands out as a primary ADW licensing state. This means that ADWs licensed in North Dakota are required to pay taxes on their proceeds to the state and contribute to a local charity or nonprofit.

Sen. Claire Cory, R-Grand Forks, the bill’s sponsor, asserts that the legislation primarily targets obsolete language related to fiscal stamps on gambling machines, which are no longer necesary due to the use of serial numbers. She also claims the amendment preventing ADWs from accepting bets on dog racing would have minimal impact on the horse racing industry, citing a two-year phase-in period.“I would say (it will affect horse racing) very minimally,” Cory said during testimony before the judiciary committee on March 17. “Thay would have time to adapt to the changes.”

However, this assessment is strongly contested by Bruce Johnson, executive director of North Dakota Racing. “If this bill passes, I can say unequivocally, (horse) racing in the state will die in the state,” Johnson stated. “There is just no way we can up the funds that come in from our ADW partners.”

Financial Implications: A Closer Look at the Numbers

The financial stakes are significant.According to North Dakota Horse Park General Manager Hugh Alan Drexler, ADW licensing has generated over $16 million in tax dollars for the state over the past decade. “This licensing has brought in over $16 million in tax dollars for the state of North Dakota over the past 10 years,” Drexler said. “These ADW partners have been compliant, followed the rules and have been loyal supporters of North Dakota for decades.” This figure excludes the millions more contributed to local charities and nonprofits by these companies.

These tax revenues are crucial for funding the North Dakota Racing Commission, which in turn provides financial support to the state’s two live horse racing tracks: Chippewa Downs in Belcourt and the North Dakota Horse Park in Fargo. These funds are primarily used to cover purses (the prize money for individual races) and promotional activities, which are essential operational expenses for the tracks.

The reliance on ADW revenue highlights a critical vulnerability. If SB 2348 were to pass, the potential loss of these funds could severely cripple the horse racing industry in North Dakota, jeopardizing the future of live racing events and the economic benefits they bring to local communities.

Perspectives and Opposition: Who Stands Where?

The proposed legislation has drawn a clear line between supporters and opponents. While Sen. Cory and representatives from GREY2K USA Worldwide, an anti-greyhound racing advocacy group, support the bill, a broad coalition opposes it, including horsemen, the Spirit Lake Tribe, and numerous North Dakota charities.

The Spirit Lake Tribe’s opposition underscores the potential economic impact on Native American communities that rely on revenue generated by the horse racing industry. similarly, the concerns raised by North Dakota charities highlight the loss of funding for vital community programs that benefit from ADW contributions.

The debate extends beyond financial considerations, touching upon ethical concerns related to animal welfare. Proponents of the bill argue that it aligns with broader efforts to combat greyhound racing, while opponents maintain that it unfairly targets a legitimate industry and could have unintended consequences for horse racing.

The Broader Context: Online Gambling in the U.S.

the debate in North dakota mirrors broader discussions surrounding online gambling regulation across the United States. While some states have embraced online sports betting and casino games as a source of revenue, others remain hesitant due to concerns about problem gambling and potential negative social impacts.

The legal landscape surrounding online gambling in the U.S. is complex and varies significantly from state to state. The federal government’s role is primarily limited to regulating interstate and international gambling activities, leaving individual states with considerable autonomy to determine their own laws and regulations.

In recent years, there has been a growing trend toward legalization and regulation of online gambling, driven in part by the increasing popularity of online sports betting and the potential for significant tax revenue. However, concerns about problem gambling and consumer protection remain a key focus of regulatory efforts.

Looking Ahead: The Future of Horse Racing in North Dakota

The fate of SB 2348 remains uncertain as it awaits further consideration in the House Judiciary Committee.the outcome of this legislative battle will have significant implications for the future of horse racing in North Dakota, potentially shaping the industry’s financial viability and its role in the state’s economy.

Irrespective of the bill’s outcome, the debate highlights the need for a complete and lasting funding model for horse racing in North Dakota. Exploring option revenue streams, such as expanded marketing efforts and partnerships with local businesses, could help to ensure the long-term viability of the industry.

Ultimately, the future of horse racing in North Dakota will depend on the ability of stakeholders to work together to address the challenges facing the industry and to advocate for policies that support its continued growth and success.