Beulah CVB Loses Gaming License Following Investigation into Misused Funds

Bismarck, ND – The North Dakota Attorney General’s Office has revoked the gaming license of the Beulah Convention and Visitors Bureau (CVB) following an investigation that revealed multiple violations of state gaming laws and regulations. The CVB is also required to repay nearly $400,000 in improperly spent funds and faces additional penalties.

Investigation Findings

The investigation, conducted by the Attorney General’s Gaming Division, uncovered several instances of misconduct, including:

• False Reporting: The Beulah CVB falsely reported the disbursement of $277,747 in net proceeds to a business, when the funds were actually distributed to the CVB itself. $20,500 in net proceeds were falsely reported as being disbursed to a golf course, when they were directly given to an individual. North Dakota Attorney General’s Office
• False Documentation: The CVB reported “donations” to organizations like the Pfennig Museum that were never made and submitted misleading applications for gaming funds. North Dakota Attorney General’s Office
• Conflict of Interest: A member of the CVB Board, who also leases property to the CVB, improperly influenced the Board’s decisions regarding the distribution of gaming net proceeds. North Dakota Attorney General’s Office
• Unlawful Transactions: Over $100,000 in net proceeds were used for ineligible purposes, including debt acquisition and direct disbursements to individuals. North Dakota Attorney General’s Office

Enforcement Actions and Penalties

As a result of the investigation, the following enforcement actions have been taken:

• Revocation of the Beulah CVB’s gaming license. Valley News Live
• The CVB must return $398,287 in improperly expended net proceeds to its trust account. North Dakota Attorney General’s Office
• A $50,000 penalty will be paid to the state of North Dakota. North Dakota Attorney General’s Office
• Several individuals have been prohibited from participating in gaming activities. North Dakota Attorney General’s Office
• Number Works LLC, a consulting business, was fined $2,500. Valley News Live
• Lawson Leonard was fined $2,500. Valley News Live
• Uncle Maddio’s Pizza received a 90-day suspension of its gaming site authorization. Valley News Live

Statement from Attorney General Wrigley

“Gaming organizations in North Dakota must follow strict rules, and it’s our responsibility to enforce them fairly,” said Attorney General Drew Wrigley. “Unfortunately, some organizations and individuals do not take these obligations seriously, as we saw with BCVB.” Valley News Live

Wrigley added that the actions taken are intended to uphold the integrity of charitable gaming and ensure compliance across North Dakota. North Dakota Attorney General’s Office