North Dakota law, specifically under North Dakota Century Code Chapter 53-06.1, governs charitable gaming. This chapter outlines the requirements for conducting lawful gaming activities for charitable purposes. The law mandates that organizations must be qualified entities, which typically include bona fide charitable, religious, educational, or fraternal organizations. These organizations must obtain a license from the State Auditor’s office. The law also specifies restrictions on the types of games allowed, the maximum wagers, and the distribution of proceeds. Proceeds from charitable gaming must be used for the organization’s charitable purposes, with a portion allowed for reasonable operating expenses. The concept of “bona fide” is crucial, meaning the organization must have a genuine purpose beyond just conducting gaming. This requires demonstrating active operation and engagement in its stated mission. For instance, an organization that has been in existence for a significant period, actively serves its community, and has a clear mission statement is more likely to be considered a bona fide organization. The licensing process involves an application that details the organization’s structure, financial history, and proposed gaming activities. The State Auditor’s office then reviews this application to ensure compliance with all statutory requirements. Failure to adhere to these regulations can result in penalties, including license revocation and fines. The emphasis is on transparency and ensuring that gaming revenue genuinely supports charitable endeavors within North Dakota.

The North Dakota Century Code, specifically Chapter 53-06.1, governs charitable gaming. Section 53-06.1-09 outlines the requirements for the purchase of gaming supplies. This statute mandates that a licensed organization must purchase gaming supplies from a supplier who is licensed by the State Gaming Director. The purpose of this regulation is to ensure accountability and prevent unregulated sales of gaming equipment and materials that could be used in illegal gambling activities. Licensed suppliers are subject to oversight and background checks, contributing to the integrity of the charitable gaming system in North Dakota. Failure to adhere to this purchasing requirement can result in penalties for the organization, including potential suspension or revocation of their gaming license. The law aims to maintain a controlled environment for charitable gaming, protecting both the participating public and the integrity of the charitable organizations. This includes ensuring that the proceeds from gaming are indeed used for charitable purposes as intended by the licensing process.

The North Dakota Century Code, specifically Chapter 53-06.1, governs charitable gaming. This chapter outlines the requirements for obtaining and maintaining a charitable gaming license. A key aspect is the definition of “net proceeds” and how they are to be used. Net proceeds are defined as gross revenue less prizes paid and reasonable operating expenses. North Dakota law mandates that net proceeds from charitable gaming must be used for charitable, civic, religious, or educational purposes as approved by the licensing authority. The law also specifies that no part of the net proceeds may inure to the benefit of any individual, shareholder, or member, except as specifically permitted for reasonable operating expenses or as a prize. The licensing authority, which is typically the State Treasurer’s office or a designated gaming commission, reviews and approves the proposed use of funds. If a licensee uses net proceeds for purposes not aligned with the approved charitable or civic objectives, or for personal gain outside of authorized expenses, it constitutes a violation of the licensing terms and North Dakota gaming law, potentially leading to license suspension or revocation. The focus is on ensuring that the gaming activity genuinely benefits the public good and that the funds generated are channeled appropriately.

The scenario presented involves a tribal casino in North Dakota that wishes to expand its gaming operations by introducing a new type of electronic gaming device. North Dakota’s gaming laws, particularly those governing tribal gaming, are established through a combination of federal Indian Gaming Regulatory Act (IGRA) principles and state-specific compacts and regulations. Under IGRA, Class III gaming, which typically includes electronic gaming devices that simulate slot machines or operate like casino games, requires a tribal-state compact. North Dakota has entered into such compacts with federally recognized tribes. These compacts outline the specific types of gaming permitted, the regulatory framework, revenue sharing, and licensing requirements. Introducing a new class of electronic gaming device would necessitate a review and potential amendment or renegotiation of the existing tribal-state compact to ensure compliance with both federal and state gaming laws. This process involves demonstrating that the proposed devices meet the definitions and standards set forth in the compact and relevant North Dakota Century Code provisions. Furthermore, the North Dakota Attorney General’s office plays a role in overseeing gaming activities and ensuring compliance with state laws and compacts. Therefore, the tribal gaming entity must engage with the state regulatory bodies, specifically through the established compact framework, to gain approval for the new gaming devices. This ensures that the expansion aligns with the regulatory structure designed to maintain the integrity of gaming in North Dakota while respecting tribal sovereignty.

The North Dakota Attorney General’s office is responsible for overseeing charitable gaming activities within the state. Specifically, North Dakota Century Code (NDCC) Chapter 12.1-42 governs charitable gaming. Section 12.1-42-04 outlines the requirements for obtaining a license. This section mandates that an application for a charitable gaming license must be filed with the Attorney General, and it specifies the information that must accompany the application. This includes details about the organization, the proposed gaming activities, financial projections, and the individuals who will be managing the gaming. Furthermore, NDCC 12.1-42-05 details the grounds for denial or revocation of a license, which can include providing false information on the application or engaging in fraudulent practices. The licensing process is designed to ensure that charitable gaming is conducted in a manner that benefits the public and adheres to the state’s regulations, thereby protecting both the public and the integrity of charitable gaming operations. The Attorney General’s office, through this regulatory framework, acts as the primary authority for licensing and enforcement of charitable gaming laws in North Dakota.

The North Dakota Century Code, specifically Chapter 53-01.1, governs charitable gaming. Section 53-01.1-02 defines “net receipts” as gross receipts less the cost of prizes and expenses directly related to conducting the gaming activity. For a Class C license, which is typically for bingo or raffles conducted by qualified organizations, the permissible expenses are narrowly defined. These generally include the cost of prizes, printing of tickets or cards, advertising, and rental of premises for the event. However, administrative overhead, general operating costs not directly attributable to the specific gaming event, or salaries of individuals not solely engaged in the direct conduct of that event are typically excluded from the definition of allowable expenses for calculating net receipts for the purpose of determining the portion dedicated to charitable purposes. Therefore, if a gaming organization incurs costs for accounting services that are not solely and directly tied to the administration of a specific, licensed gaming event, but rather cover broader organizational accounting needs, these would not be considered direct expenses deductible from gross receipts to arrive at net receipts under North Dakota law for charitable gaming purposes.

In North Dakota, the regulation of charitable gaming is primarily governed by the North Dakota Century Code, specifically Chapter 53-06.1, concerning Charitable Gaming. This chapter outlines the licensing requirements, operational guidelines, and prohibitions for organizations conducting charitable gaming activities. One key aspect is the definition of what constitutes a “bona fide charitable organization.” Generally, this refers to organizations that are recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code, or other specific provisions allowing for charitable or fraternal purposes, and that primarily engage in activities for public benefit, such as relief of poverty, advancement of education, or promotion of religion. The law is designed to ensure that gaming proceeds are genuinely used for charitable purposes and not for private gain or excessive administrative costs. The distinction between a lawful charitable gaming activity and an unlawful lottery or gambling operation hinges on the organizational status and the specific intent and use of the funds generated. North Dakota law specifically prohibits certain types of games and requires detailed record-keeping and reporting to maintain transparency and accountability. The North Dakota Gaming Commission oversees the administration and enforcement of these regulations, issuing licenses and conducting investigations into potential violations. The focus is always on the charitable purpose and the integrity of the gaming process.

The North Dakota Gaming Control Act, specifically focusing on the licensing and regulation of charitable gaming, establishes stringent requirements for organizations seeking to conduct such activities. A key aspect of this regulation is the definition of a “bona fide charitable organization.” This definition, as outlined in North Dakota Century Code (NDCC) Chapter 12.1-30, generally requires an organization to have been in continuous existence for a specified period, typically two years, and to primarily operate for purposes that are exclusively charitable, educational, religious, fraternal, or for the promotion of community welfare. The organization must also demonstrate that its net earnings do not benefit any private shareholder or individual. When considering an organization that has recently merged with another entity, the critical factor for licensure under North Dakota gaming law is whether the *surviving* or *resulting* entity, post-merger, meets the established criteria for a bona fide charitable organization. This includes demonstrating the required period of continuous operation and the continuation of its charitable purposes. A merger does not automatically disqualify an organization, but it necessitates a review of the new entity’s compliance with all statutory requirements. Therefore, an organization formed by the merger of two pre-existing entities would need to establish its own eligibility based on its post-merger operational history and adherence to the statutory definition of a bona fide charitable organization, rather than relying solely on the prior histories of the merged entities independently. The focus is on the operational continuity and charitable nature of the entity seeking the license at the time of application.

The North Dakota Century Code, specifically Chapter 53-06.1, governs charitable gaming. This chapter outlines the licensing requirements, operational rules, and distribution of proceeds for organizations conducting charitable gaming activities. For a qualified organization to conduct gaming, it must be a nonprofit entity that has been in existence in North Dakota for at least three years prior to applying for a license and has a primary purpose other than the mere distribution of funds to members. The law emphasizes that proceeds from charitable gaming must be used for lawful charitable purposes within North Dakota. This includes supporting religious, educational, civic, fraternal, veterans, or charitable activities. The law also specifies limitations on the types of games that can be conducted and the maximum prize amounts, all designed to ensure the integrity of charitable gaming and that the funds benefit the public good. A key aspect is the requirement for detailed record-keeping and reporting to the state, ensuring transparency and accountability in the management of gaming revenue. Failure to adhere to these regulations can result in license suspension or revocation.

North Dakota law, specifically Chapter 18-02 of the North Dakota Century Code, governs charitable gaming. A key aspect of this regulation is the definition and permissible use of proceeds from charitable gaming activities. Organizations conducting such games are required to use the net proceeds for the specific charitable or public-spirited purposes for which they are licensed. This means that after deducting authorized expenses associated with conducting the gaming activity, the remaining funds must be directly applied to furthering the organization’s stated charitable mission. Funds cannot be used for private benefit, political lobbying, or any purpose outside the scope of the approved charitable purpose. For example, if a license is granted for a raffle to benefit a local animal shelter’s operational costs, the net proceeds must be used for those costs and cannot be diverted to pay for unrelated administrative overhead not directly tied to the gaming operation itself, nor can they be used for general fundraising expenses of the organization unrelated to the specific gaming event. The law emphasizes transparency and accountability in the handling of charitable gaming proceeds to ensure public trust and the integrity of these activities.

North Dakota law, specifically under Chapter 53-06.1 of the North Dakota Century Code, governs charitable gaming. This chapter outlines the requirements for obtaining and maintaining a license for conducting charitable gaming activities. A key aspect of these regulations pertains to the distribution of net proceeds derived from charitable gaming. The law mandates that a significant portion of these net proceeds must be used for charitable purposes. Specifically, it requires that at least 70% of the net proceeds from all charitable gaming activities conducted by a licensed organization must be distributed for charitable purposes or for the expenses of the organization directly related to the charitable gaming activities. The remaining 30% can be used for administrative expenses, including reasonable compensation for employees, and other operational costs, provided these are properly documented and approved. Therefore, if an organization reports \$100,000 in net proceeds, at least \$70,000 must be allocated to charitable purposes. The law also specifies reporting requirements and audits to ensure compliance with these distribution mandates. The definition of “net proceeds” is crucial, as it is the amount remaining after deducting prizes and the cost of prizes from gross receipts. This ensures that the charitable benefit is derived from the profit of the gaming, not just the total revenue.

North Dakota’s tribal gaming compacts are governed by federal law, specifically the Indian Gaming Regulatory Act (IGRA) of 1988, and state law. IGRA mandates that tribes may only conduct gaming operations if they have entered into a compact with the state. These compacts must address various aspects of gaming, including the types of games permitted, regulations, taxation, and the distribution of revenues. For Class III gaming, which includes casino-style games like slot machines and table games, the compact is crucial. The negotiation process for these compacts is a key area of state-tribal relations. While the federal government oversees IGRA, states play a significant role in the compacting process. The specific terms of a compact can vary widely between tribes and states, reflecting the unique circumstances and negotiation outcomes. In North Dakota, the Governor is typically the primary state official responsible for negotiating these compacts, with legislative oversight and approval often required. The process involves identifying permissible games, establishing regulatory frameworks, and agreeing on revenue sharing mechanisms, if any, that comply with federal and state law. The Governor’s authority to enter into these agreements is derived from state statutes that authorize cooperation with federally recognized Indian tribes for gaming purposes.

North Dakota Century Code (NDCC) Chapter 53-06.1 governs charitable gaming. Specifically, NDCC § 53-06.1-03 outlines the requirements for obtaining a license to conduct charitable gaming. This section mandates that an applicant must be a qualified organization as defined by the law, which includes specific types of non-profit entities. Furthermore, the applicant must demonstrate that the gaming activities will be conducted for a charitable purpose, as defined by North Dakota statutes, which generally involves benefiting the public or a significant segment of the public. The application process involves submitting detailed information about the organization, its financial status, and the proposed gaming activities, including the types of games, location, and how the proceeds will be used. The gaming commission reviews these applications to ensure compliance with all statutory requirements and to protect the integrity of charitable gaming. The question tests the understanding of the fundamental prerequisites for an organization to be legally permitted to conduct charitable gaming within North Dakota, focusing on the dual requirements of organizational qualification and the intended use of proceeds for a charitable purpose, as established by the state’s legislative framework for such activities.

The North Dakota Century Code, specifically Chapter 53-01.1, governs charitable gaming. This chapter outlines the requirements for obtaining and maintaining licenses for charitable gaming activities. A key aspect is the definition of what constitutes a “qualified organization” eligible to conduct such gaming. Generally, a qualified organization must be a nonprofit entity that has been in existence for a specified period, typically two years, and whose primary purpose is charitable, educational, civic, or religious. The law also mandates that the proceeds from charitable gaming must be used for the organization’s stated charitable purposes. Failure to adhere to these provisions, such as diverting funds for private benefit or conducting gaming without a proper license, can result in penalties. The question assesses the understanding of the statutory requirements for an organization to be legally permitted to conduct charitable gaming in North Dakota, focusing on the definition of a qualified entity and the permissible use of gaming revenue. This requires knowledge of the specific criteria set forth in North Dakota’s gaming statutes, which are designed to ensure that gaming activities genuinely benefit the public good and are not exploited for private gain. The emphasis is on the organizational structure and the intended use of funds, which are foundational to the regulatory framework of charitable gaming in the state.

The North Dakota Century Code, specifically Chapter 53-06.1, governs charitable gaming. Section 53-06.1-02 outlines the types of organizations eligible to conduct charitable gaming, including those organized for religious, charitable, fraternal, or civic purposes, as well as veterans’ organizations and volunteer fire departments. A key aspect of eligibility is that the organization must have been in existence for a specified period, typically at least three years prior to applying for a license, and must operate on a non-profit basis. The law also mandates that the net proceeds from charitable gaming must be used for the organization’s stated charitable purposes, not for the private benefit of any individual. The definition of “net proceeds” is crucial; it refers to the gross revenue from gaming activities less the actual cost of prizes paid and expenses directly related to conducting the gaming, such as licensing fees, equipment rental, and supplies. Administrative overhead not directly tied to the gaming event itself, such as general office rent or salaries for non-gaming related staff, is generally not deductible. Therefore, if an organization has gross revenues of $10,000, pays $3,000 in prizes, and incurs $1,500 in direct gaming expenses (licensing, supplies, equipment), the net proceeds would be $10,000 – $3,000 – $1,500 = $5,500. This $5,500 is the amount that must be used for the organization’s charitable mission. The question tests the understanding of what constitutes “net proceeds” and how it is calculated under North Dakota law, emphasizing the exclusion of general operational costs not directly attributable to the gaming activity.

The North Dakota Attorney General is vested with the authority to investigate violations of North Dakota’s gaming laws. This investigative power is crucial for ensuring compliance with statutes such as the North Dakota Century Code Chapter 12.1-32, which addresses gambling offenses, and regulations promulgated by the State Gaming Commission. The Attorney General’s office can initiate investigations based on complaints, referrals from other law enforcement agencies, or its own proactive intelligence gathering. During an investigation, the Attorney General’s office has broad powers, including the ability to subpoena witnesses and documents, conduct surveillance, and coordinate with federal and tribal law enforcement agencies. The purpose of these investigations is to gather evidence to determine if illegal gambling activities have occurred and, if so, to pursue appropriate legal remedies, which may include civil penalties, criminal prosecution, or regulatory actions. The Attorney General also plays a role in advising the Governor and the legislature on matters pertaining to gaming law and policy in North Dakota. This broad mandate underscores the Attorney General’s central role in the enforcement and oversight of the state’s gaming regulatory framework, ensuring the integrity of gaming operations and protecting the public from illegal gambling practices.

North Dakota law, specifically the North Dakota Century Code (NDCC) Chapter 23-12, governs charitable gaming activities. This chapter outlines the requirements for obtaining and maintaining licenses for conducting various forms of charitable gaming, including raffles, bazaars, and pull-tabs. A key aspect of this regulation is the definition of what constitutes a “bona fide charitable organization” eligible to conduct gaming. NDCC 23-12-01 defines such an organization as one that is organized and operated primarily for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals, and which does not permit any part of its net earnings to inure to the benefit of any private shareholder or individual. Furthermore, the law specifies that an organization must have been in existence and actively functioning in North Dakota for at least two years immediately preceding the application for a gaming license. This two-year requirement is a crucial threshold to ensure that organizations seeking to conduct gaming have a demonstrated history of serving their stated charitable purposes within the state, preventing opportunistic or transient groups from engaging in regulated gaming activities. Therefore, an organization that has only been operating for eighteen months, regardless of its stated mission or the nature of its activities, would not meet the statutory prerequisite for licensure.

The scenario involves a tribal casino in North Dakota that wishes to expand its gaming operations by introducing a new type of electronic gaming machine not currently authorized under existing tribal-state compacts or North Dakota Century Code provisions governing charitable gaming. The North Dakota Gaming Control Act, specifically focusing on the regulatory framework for gaming, dictates the process for authorizing new forms of gaming. Introduction of any new gaming device or game type requires explicit authorization, which typically involves amendments to existing compacts or legislative approval. North Dakota Century Code Chapter 53-06.1 outlines the regulatory authority and procedures for gaming. Specifically, the introduction of electronic gaming devices falls under the purview of the State Gaming Commission, which oversees licensing, regulation, and enforcement of gaming laws. Any expansion or modification of gaming offerings must adhere to the established statutory and regulatory requirements, including obtaining necessary approvals and ensuring compliance with the terms of any tribal-state compacts that govern gaming on tribal lands within the state. The process for authorizing new electronic gaming machines would involve a formal application to the State Gaming Commission, a review of the proposed technology, and a determination of its compliance with North Dakota’s gaming laws and regulations. Without this authorization, the introduction of such machines would constitute an illegal gaming operation. Therefore, the critical step is securing the appropriate regulatory approval from the state.

The North Dakota Century Code, specifically Chapter 53-06.1, governs charitable gaming. This chapter outlines the requirements for organizations to conduct gaming activities for charitable purposes. A key aspect is the definition of a “qualified organization,” which must be a nonprofit entity that has been in existence for a specified period and uses its proceeds for charitable, benevolent, educational, or civic purposes within North Dakota. The law also details the types of gaming permitted, licensing procedures, reporting requirements, and the allocation of proceeds. For instance, a certain percentage of net proceeds must be dedicated to charitable purposes, with specific limitations on administrative costs. The question focuses on the fundamental eligibility criteria for an organization to engage in charitable gaming in North Dakota. Understanding the definition of a qualified organization, its organizational structure, and its purpose is paramount to complying with state gaming laws. The duration of existence and the nature of its activities are crucial factors that the North Dakota Attorney General’s office or the State Gaming Commissioner would scrutinize when reviewing an application or conducting an audit.

The North Dakota Century Code, specifically Chapter 53-06.1, governs charitable gaming. This chapter outlines the requirements for obtaining and maintaining a license for charitable gaming activities. A key aspect is the reporting of financial activities. Section 53-06.1-09 mandates that all gross revenue from charitable gaming must be deposited into a separate bank account. Furthermore, Section 53-06.1-10 details the disposition of net proceeds, stating that these proceeds must be used for the charitable purpose for which the license was granted. The law also specifies record-keeping requirements, ensuring transparency and accountability. Any deviation from these reporting and disposition rules can lead to penalties, including license suspension or revocation. The question probes the understanding of where gross revenue must be placed and how net proceeds must be utilized, which are fundamental compliance requirements under North Dakota law for organizations conducting charitable gaming. Understanding the distinction between gross revenue and net proceeds, and their respective legal destinations, is crucial for lawful operation.

The North Dakota Attorney General is responsible for overseeing the regulation and enforcement of charitable gaming activities within the state. This includes the licensing of organizations, the approval of gaming devices, and the investigation of potential violations. Specifically, under North Dakota Century Code (NDCC) Chapter 12.1-26, which governs gambling, and the regulations promulgated by the Attorney General’s office, the Attorney General has the authority to issue, deny, suspend, or revoke licenses for charitable gaming. This authority is crucial for ensuring that gaming proceeds are used for their intended charitable purposes and that the integrity of these operations is maintained. The Attorney General’s office also plays a role in establishing rules for the conduct of charitable gaming, including record-keeping requirements, limits on wagers, and the types of games permitted. This oversight is a core function to prevent fraud and ensure compliance with state law, thereby protecting both the public and the charitable organizations themselves. The Attorney General’s role is thus central to the lawful operation of charitable gaming in North Dakota.

North Dakota gaming law, specifically concerning charitable gaming, outlines strict requirements for the operation and oversight of these activities. The North Dakota Attorney General is the primary regulatory authority. Licensed organizations must adhere to specific rules regarding the conduct of games, the use of proceeds, and record-keeping. For instance, the law mandates that at least 50% of the net proceeds from charitable gaming activities must be used for the charitable purpose for which the license was granted. Net proceeds are calculated by subtracting the cost of prizes and direct operating expenses from the gross revenue. If an organization operates multiple gaming events, the 50% rule applies to the aggregate net proceeds from all such events within a licensing period. Failure to comply can result in penalties, including license suspension or revocation. The question tests the understanding of this fundamental requirement for charitable gaming organizations in North Dakota. The calculation to determine the minimum required charitable contribution is straightforward: 50% of net proceeds. In this scenario, the net proceeds are $15,000. Therefore, the minimum amount that must be used for the charitable purpose is \(0.50 \times \$15,000 = \$7,500\). This ensures that the primary intent of charitable gaming – to benefit the community – is upheld.

North Dakota law, specifically Chapter 18-03 of the North Dakota Century Code, governs the operation of charitable gaming. This chapter details the requirements for organizations to be eligible to conduct charitable gaming, including the necessity of being a bona fide charitable, religious, fraternal, or veterans’ organization. Furthermore, it outlines the permissible types of gaming activities, such as raffles, pull tabs, and bingo. A critical aspect of charitable gaming regulation is the requirement for licensing and the strict oversight of proceeds. Organizations must obtain a license from the North Dakota Attorney General’s office to conduct these activities. The law mandates that at least 70% of the net proceeds from any charitable gaming activity must be used for the charitable purposes for which the organization is organized and for which the gaming is conducted. The remaining 30% can be used for administrative expenses, operational costs, and other lawful purposes of the organization, but not for private gain or profit of any individual. This 70% rule is a fundamental principle designed to ensure that the primary intent of charitable gaming—to benefit the public good—is upheld. Failure to adhere to this distribution requirement can result in penalties, including license revocation. The question tests the understanding of this specific statutory requirement regarding the allocation of gaming proceeds for licensed charitable gaming operations within North Dakota.

The North Dakota Gaming Control Act, specifically focusing on charitable gaming, outlines strict regulations regarding the operation and oversight of these activities. When a charitable organization in North Dakota plans to conduct a raffle, a key requirement is to obtain a permit from the Gaming Division of the North Dakota Attorney General’s Office. This permit process ensures that the gaming activity is conducted in accordance with the law, that proceeds are used for legitimate charitable purposes, and that proper accounting and reporting are maintained. The law mandates that any organization intending to conduct a raffle, which involves selling tickets for a chance to win a prize, must first secure this authorization. Failure to obtain the necessary permit before conducting the raffle constitutes a violation of North Dakota gaming laws. The permit application typically requires detailed information about the organization, the proposed raffle, the prizes, the intended use of the net proceeds, and the individuals responsible for managing the event. This regulatory framework is designed to prevent fraud, ensure accountability, and protect the integrity of charitable gaming operations within the state, safeguarding both the public’s trust and the intended beneficiaries of the charitable endeavors.

North Dakota law, specifically under the purview of the North Dakota Gaming Commission, governs the operation of charitable gaming. A key aspect of this regulation involves the distribution of proceeds from these activities. When a licensed charitable organization conducts gaming, a portion of the net proceeds must be allocated to the charitable purpose for which the license was granted. North Dakota Century Code (NDCC) Section 23.1-13-07 outlines the permissible uses of gaming proceeds. This section specifies that at least 70% of the net proceeds from a charitable gaming event must be used for the charitable purpose. The remaining 30% can be used for administrative expenses, including reasonable compensation for workers, operational costs, and other expenses directly related to the conduct of the gaming activity. The question posits a scenario where a licensed organization has net proceeds of \$10,000. To determine the minimum amount that must be allocated to the charitable purpose, we apply the 70% rule. Therefore, the calculation is as follows: \$10,000 (Net Proceeds) * 0.70 (Minimum Charitable Allocation Percentage) = \$7,000. This \$7,000 represents the minimum amount that must be directly applied to the organization’s stated charitable mission. The remaining \$3,000 can be used for operational expenses. Understanding this statutory allocation is crucial for compliance with North Dakota’s charitable gaming statutes.

In North Dakota, the regulation of charitable gaming is primarily governed by Chapter 23-06.2 of the North Dakota Century Code, which outlines the requirements for obtaining and maintaining a charitable gaming license. A key aspect of this regulation is the process for approving or denying applications. When an application for a charitable gaming license is submitted, it is reviewed by the relevant state authority, which in North Dakota is the Attorney General’s office, specifically the Charitable Gaming Division. The law mandates that the Attorney General must approve or deny an application within a specified timeframe. This timeframe is crucial for ensuring efficiency in the licensing process and providing certainty to applicants. North Dakota law, specifically in relation to charitable gaming licenses, generally requires a decision within 90 days of a complete application being filed, unless specific circumstances necessitate an extension, which must be communicated to the applicant. Failure to act within this period, without proper notification of an extension, can lead to certain legal presumptions regarding the application’s status. The core principle is that applicants should not face indefinite delays in receiving a decision on their license, which is essential for their operational planning and fundraising activities. Therefore, the Attorney General’s office is statutorily bound to make a determination within this prescribed period.

North Dakota law, specifically under the North Dakota Century Code (NDCC) Chapter 53-06.1, governs charitable gaming. This chapter outlines the requirements for obtaining and maintaining licenses for charitable gaming activities. Section 53-06.1-05 details the permissible activities and limitations. When a qualified organization conducts a raffle, the net proceeds from that raffle must be used for lawful charitable purposes as defined by the law. The law specifies that “net proceeds” are the gross revenue from the gaming activity less the actual and necessary expenses incurred in conducting that activity. For a raffle, this would include the cost of prizes, printing of tickets, advertising directly related to the raffle, and other direct operational costs. Funds used for administrative overhead not directly attributable to the specific gaming event, or for purposes not deemed charitable under NDCC 53-06.1-01, would not qualify as a permissible use of net proceeds. Therefore, if an organization uses funds that represent the net proceeds of a raffle to pay for general operating expenses that are not directly tied to the charitable gaming activity itself, or for purposes that do not align with the statutory definition of charitable purposes, they would be in violation of the law. The key is the direct attribution of expenses and the specific nature of the charitable use of the funds.

North Dakota law, specifically concerning charitable gaming, outlines distinct responsibilities for organizations conducting such activities. The North Dakota Gaming Control Act and associated administrative rules, such as those found in Chapter 39-01 of the North Dakota Administrative Code, govern these operations. A key aspect is the proper allocation of gross revenue. For instance, if a licensed organization conducts a raffle with a total gross revenue of $10,000, and the expenses directly related to conducting that specific raffle (e.g., cost of prizes, printing tickets) amount to $1,500, then the net proceeds available for the charitable purpose are calculated by subtracting these direct expenses from the gross revenue. Calculation: Gross Revenue: $10,000 Direct Expenses: $1,500 Net Proceeds for Charitable Purpose = Gross Revenue – Direct Expenses Net Proceeds for Charitable Purpose = $10,000 – $1,500 = $8,500 This calculation demonstrates the fundamental principle that only net proceeds, after accounting for legitimate and directly associated costs of the gaming activity, can be designated for the organization’s charitable mission. Any revenue remaining after these deductions must be applied to the stated charitable purpose as defined in the organization’s license and application. Misappropriation or improper allocation of these funds can lead to severe penalties under North Dakota gaming law, including license suspension or revocation and potential criminal charges. The law emphasizes transparency and accountability in the handling of funds generated through charitable gaming activities.

North Dakota gaming law, specifically concerning charitable gaming, distinguishes between different types of organizations and the activities they are permitted to conduct. Licensed organizations must adhere to strict regulations regarding the management and distribution of gaming proceeds. A key aspect of these regulations is the requirement that net proceeds from charitable gaming activities must be used for lawful charitable purposes within North Dakota. This includes supporting religious, educational, youth, civic, or community projects that benefit the public. The North Dakota Attorney General’s office oversees these regulations and provides guidance on permissible uses of funds. Organizations are prohibited from using gaming proceeds for the personal benefit of any individual, officer, or member, or for political lobbying activities. The definition of “lawful charitable purposes” is broad but is interpreted to exclude activities that are primarily commercial or that do not directly serve a recognized charitable or public benefit. Therefore, any expenditure that does not align with these defined charitable purposes, such as funding a for-profit venture or an activity primarily for the entertainment of members without a broader public benefit, would be considered a violation of North Dakota’s charitable gaming laws. The emphasis is on the direct and tangible benefit to the North Dakota community or its residents through approved charitable activities.

The North Dakota Gaming Control Act, specifically North Dakota Century Code (NDCC) Chapter 12.1-28, governs the licensing and operation of charitable gaming. A key aspect of this regulation is the requirement for organizations to obtain a license to conduct gaming activities. The Act outlines various types of gaming, including raffles, bazaars, and pull-tabs. For an organization to be eligible for a gaming license, it must generally be a bona fide charitable, religious, fraternal, or civic organization that has been in existence for a specified period, typically two years, and operates for purposes other than the distribution of profits to its members. This duration requirement ensures the organization has a stable operational history and is genuinely engaged in its stated charitable or civic mission. The Act also details the process for application, including the submission of organizational documents and financial statements, and specifies the fees associated with licensing. Furthermore, the law mandates that all proceeds from charitable gaming must be used for the organization’s stated charitable purposes, with strict limitations on the use of funds for administrative or operational expenses. The regulatory framework is designed to prevent fraud and ensure that the public’s participation in charitable gaming directly benefits the intended charitable causes within North Dakota.