The North Dakota Office of Attorney General has taken enforcement actions against the Beulah Convention and Visitors Bureau (CVB) after an investigation found several violations of state gaming laws. The Gaming Division determined that the CVB engaged in activities that did not meet legal requirements, including misrepresenting financial distributions, making improper transfers of net proceeds, and submitting inaccurate official reports.
Investigators reported that the CVB falsely claimed to have distributed $277,747 in net proceeds to a business when it actually transferred those funds to itself. Similarly, $20,500 was reported as given to a golf course but was instead disbursed directly to an individual. The investigation also revealed that the CVB listed donations to organizations such as the Pfennig Museum that were never made and submitted misleading applications for gaming funds.
A conflict of interest was identified involving a board member who leased property to the CVB and participated in decisions about distributing gaming proceeds. Additionally, more than $100,000 in net proceeds were used for purposes not allowed under state law, including paying off debt and making direct payments to individuals.
As a result of these findings, enforcement measures include revoking Beulah CVB’s gaming license. The organization is required to return $398,287 in improperly spent net proceeds to its trust account and pay a $50,000 penalty to the state. Certain individuals are now prohibited from participating in gaming activities. Number Works LLC faces a $2,500 fine for its role in unlawful transactions related to these violations. Uncle Maddio’s Pizza received a 90-day suspension of its gaming site authorization. Lawson Leonard was fined $2,500.
Attorney General Drew Wrigley stated: “Gaming organizations in North Dakota must follow strict rules, and it’s our responsibility to enforce them fairly. Unfortunately, some organizations and individuals do not take these obligations seriously, as we saw with BCVB. Given the scope and gravity of these violations and lack of cooperation with the investigators, I have no choice but to revoke BCVB’s license and require repayment of unlawfully distributed funds. BCVB and the individuals involved will have the opportunity to respond and request a hearing if they wish.”
Wrigley added that these steps are necessary “to uphold the integrity of charitable gaming and ensure compliance across North Dakota.”
The Attorney General’s Consumer Protection and Antitrust Division continues its work protecting residents from deceptive or unlawful practices by enforcing antitrust and consumer protection laws.
