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North Dakota Lotteries

The North Dakota Lottery was established in 2004 with a loan from the state for start-up costs and launched its state-run lottery on 25 March 2004. North Dakota conducts five multi-state lottery games: Powerball, Mega Millions, Hot Lotto, Wild Card 2 and 2by2.

The Lottery is unique among U.S. lotteries because the North Dakota constitution specifically limits the games that can be offered to online games and multi-state games. The Lottery cannot provide in-state lotto games, instant ticket games, or pick 3 and 4 games. Because of this restriction, the Lottery must partner with other government-authorized lotteries to conduct a game.

The Lottery is a separate, self-sustaining division that reports to the Office of Attorney General (AGO). The law dictates that state revenues may not be used to pay Lottery expenses or prizes. The 2004 Lottery statutes also established a commission, which serves as policy advisor to the AG and as the Lottery Audit Committee for the Lottery. The Commission is a five-member board appointed by the Governor for three-year staggered terms. The Commission may use the resources of the AGO to carry out its duties. The Commission’s budget is controlled by the AGO.

The Lottery is required to transfer 23% of its net proceeds to the state general fund. A 1 July 2005 law required $50,000, approximately 1% of net proceeds, to be transferred quarterly to the Compulsive Gambling Prevention and Treatment Fund and on 1 July 2007, $105,625, approximately 2% of net proceeds, to be transferred to the Multi-Jurisdictional Drug Task Force Grant Fund, before any proceeds were transferred to the state general fund.

Lottery retailers receive a 5% commission on each ticket sold and for retailer-initiated subscription sales. The Lottery does not provide retailers a commission for redeeming winning tickets. However, the Lottery began paying retailers a bonus commission for selling jackpot, grand prize and specific high-tier prize-winning tickets in 2006. A retailer must pay $500 for the first year’s license fee. The renewal fee for retailers is $150.

Credit cards are prohibited for buying lottery tickets.
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