North Dakota Gaming director raises alarm over possible money laundering with e-tab machines – InForum

BISMARCK — North Dakota’s gaming department chief this week expressed concerns about potential money laundering, fraud and other compliance issues related to the proliferation of electronic pull-tab machines in the state.

Commissioner Deb McDaniel told members of the state Assembly’s Transitional Justice Committee on Thursday, March 7, that money laundering is being investigated across the state’s more than 830 charitable gambling establishments, including approximately 4,900 electronic pull-tab machines. He said it was “nearly impossible” to detect.

McDaniel said traditional casinos have surveillance, trained staff and other safeguards in place to catch money launderers, but electronic tab machines at bars, restaurants and other businesses have similar He said there was no level monitoring.

“We know it’s happening, but we can’t quantify how often or in what quantity,” McDaniel said.

He cited an example in the Fargo area where the detection occurred when the agency asked manufacturers to submit activity reports. According to the report, customers put cash into the machine and then withdrawn the money without playing the device. McDaniel said the customer then took the voucher to the bar and received a check from the bar owner for about $8,000, a process that “cleansed” the money earned through drug sales and other illegal businesses. “It may be used to

“This is one report. For one device, we have 4,900 devices,” she said.

Rep. Jim Kasper, R-Fargo, asked McDaniel whether her office has the authority to investigate suspected money laundering cases under the state’s current law.

“I found it by accident,” McDaniel said. She added that she believes the department has the authority to contact local law enforcement for a follow-up investigation.

Mr. McDaniel also addressed concerns related to charitable gambling, including counterfeit banknotes and fraudulent pull tabs and vouchers, which can ultimately cost charities money.

Scott Meske, lobbyist for the North Dakota Gaming Alliance, said the industry is ready to work with lawmakers on possible improvements, but cautioned against passing legislation that would harm charities.

“Let’s try to deal with the bad guys and some of the bad things that are happening, but not throw a blanket over the whole industry and say it’s bad,” Meske told lawmakers.

E-tab machines, which resemble slot machines, began appearing in North Dakota in 2018 after Congress approved them. McDaniel said additional legislative amendments may be needed at the next meeting to continue oversight of an ever-evolving industry.

For example, at some sites, the only area around the e-tab machine is a taped area on the floor that says “beyond this point it must be 21,” McDaniel said.

She showed lawmakers photos of e-tab machines near children’s games and of adults playing e-tab machines with young children on their laps.

Sen. Diane Larson, R-Bismarck, asked whether McDaniel’s office had enough personnel to monitor activity and enforce the law.

Michael Achterling/Monitor, North Dakota

McDaniel said he is seeking direction from the Legislature on the future of charitable gambling in North Dakota to learn what is needed to regulate the industry.

“We’re not here today to recruit full-time employees, but I can tell you for sure: We’re very busy,” she said.

Sen. Janne Myrdal (R-Edinburg), chair of the Judiciary Committee, said she and other committee members define a “public-spirited organization” to be allowed to serve on the Judiciary Committee. He said he would spend the next few months drafting a bill to ensure clarity. Charitable gambling.

This article was originally published on NorthDakotaMonitor.com