The Forum
BISMARCK -- After glowing speeches about its potential for economic
development, jobs and unique opportunities, the House voted Wednesday
to have the state become a national headquarters for companies that
host worldwide live Internet poker.
Rep. Bill Kretschmar, R-Venturia, said North Dakota would offer to
regulate the industry here, collecting taxes and fees for its general
fund in the process.
"It`s like `If you build it they will come,` " he said. No companies
operate in the U.S. now, he said. They are in the Caribbean or other
foreign countries.
Rep. Jim Kasper, R-Fargo, is the prime sponsor of House Bill 1509 and
said the state could enjoy tremendous revenue from licensing and
regulating the industry.
"This industry is growing at about 10 percent per month. No single
state has passed legislation like this. We would be the first to do
that," he said. "So the market is tremendous and as you know, the first
one out of the chute generally has a pretty good opportunity to capture
that marketplace."
He said that because the Internet sites are already there, "This is not an expansion of gaming whatsoever."
He said if the state licenses 200 poker sites, it could take in $40
million. There are 50 million Internet poker players in the country now
and 300 million worldwide. If the state licensed 50 million players,
"That`s 500 million dollars per year new revenue to North Dakota."
Another sponsor, Rep. Ron Iverson, R-Fargo, said, "This is a rare
opportunity for us to be first out of the gate here. The reason other
states aren`t doing this is they don`t have the foresight. This is our
time. This is our time to seize this opportunity."
Rep. Lawrence Klemin, R-Fargo, said he doesn`t think companies would
bring jobs here. It`s more likely the company would bring a
4-foot-by-4-foot computer server, he said.
The bill passed 49-43.
The House vote comes less than two weeks after North Dakota`s horse
betting industry scandal culminated in conviction of Racing Services
Inc. and owner Susan Bala on a dozen federal charges related to a
clandestine, illegal off-track betting parlor.
In RSI`s case, Bala made her company and North Dakota a national and
international leader in simulcast horse race wagering. Until news of
state and federal investigations surfaced in 2003, she had lured
gamblers who bet as much as $160 million a year through RSI and the
state reaped a windfall that has now dried up.
The bill is an "enabling act` that would only go into effect if the
Legislature and the state`s voters approve a constitutional amendment
to allow the industry.
The bill now goes to the Senate.
