BISMARCK, N.D. (AP) – North Dakota’s attorney general on Thursday announced a settlement with three gambling equipment distributors he accused in April of violating the state’s charitable gambling laws and regulations. But now their licenses could be in jeopardy if he finds issues with an email he said the companies sent to their customers regarding the settlement.
The settlement, which includes a $125,000 fine and acknowledgement of wrongdoing, comes as state lawmakers and gambling regulators have been dealing with issues related to electronic pull tab machines, which have proliferated in North Dakota since 2018. The Legislature this spring passed a bill to limit the devices, which function like slot machines, while a legislative study of the state’s charitable gambling issues unfolds.
Attorney General Drew Wrigley in April filed an administrative complaint accusing Western Distributing Company, Plains Gaming Distributing Inc. and Midwest Gaming Distributing Inc. of facilitating excessive rent payments and attempting to influence bars’ charitable gambling activities through the Wall of Honor veterans nonprofit. The Wall of Honor recognizes military members and veterans and emergency responders on indoor digital display boards in places such as bars, restaurants and fraternal organizations.
Wrigley had alleged a scheme involving the Wall of Honor as an enticement to get bars to use electronic pull tab machines provided exclusively by the three distributors, and to influence bars to switch charitable gambling organizations.
“These gaming violations undermine the integrity of charitable gaming in North Dakota. Those responsible for these improper actions violated the public trust and the trust of the charities that relied on them,” Wrigley said in a statement. “The last year has brought a new day in gaming enforcement, and the public can be assured that law enforcement and the outstanding professionals in the Attorney General’s Gaming Division are working hard to protect the integrity of the limited charitable gaming that is permitted under North Dakota law.”
Wrigley had sought to revoke the distributors’ licenses and fine them.
Among the settlement’s terms is a maximum $125,000 fine against the three distributors, who also must pay attorney costs incurred by Wrigley’s office, totaling over $36,000 so far. Western and Plains President and shareholder Dave Wisdom and his immediate relatives also will be removed from ownership and other involvement with the companies.
The settlement also includes an acknowledgement by the distributors of wrongdoing and of inaccurate public statements, and potential revocation of the distributors’ licenses if they don’t comply with the settlement’s terms or if they commit other violations during the next three years.
Wrigley said in an interview he is reviewing the email sent to the distributors’ customers and any related statements the companies might make, citing an agreement of the settlement that the distributors “will refrain from making any statements contrary” to the settlement’s terms and acknowledgements.
He wouldn’t elaborate on what in the email caught his attention, an email he called “a very significant and troubling development.” His office has reached out to the distributors’ counsel, he said.
“This is not a public relations matter for them. It’s a legal matter,” he told The Associated Press.
Wrigley said he has discretion to revoke the distributors’ licenses if he finds the email violated the terms of the settlement.
The Wall of Honor in a statement said its board of directors is “pleased a settlement has been reached between the Attorney General’s office and Western Distributing companies.” The nonprofit was not accused in the complaint.
The Wall of Honor has 132 locations, 68 of which are eligible for charitable gambling. Of those 68, the distributors named in the complaint have machines in 28 locations, “21 of which Western had long before the Wall of Honor concept,” the nonprofit said.
“The Wall of Honor did have discussions with several veteran organizations regarding the opportunity charitable gaming would provide their organizations to sustain their brand and keep membership alive. Sustainability of veteran organizations is as important as honoring the men and women who served our country,” Wall of Honor Volunteer Executive Director Tammy Ibach said in the statement.
