# N.D. Cent. Code § 53-06.1-01: 53-06.1-01. Definitions

> North Dakota · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_ND_T53_C53-06.1_S53-06.1-01

## Section

- **Citation:** N.D. Cent. Code § 53-06.1-01
- **Heading:** 53-06.1-01. Definitions
- **Jurisdiction:** North Dakota
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** ND Code / Title 53 / Chapter 53-06.1 / Section 53-06.1-01

## Text

53-06.1-01. Definitions

As used in this chapter:

1. "Adjusted gross proceeds" means gross proceeds less cash prizes, cost of

merchandise prizes, gaming tax, and federal excise tax imposed under section 4401 of

the Internal Revenue Code [26 U.S.C. 4401].

2. "Alcoholic beverage establishment" means an establishment licensed under section

5-01-21 or chapter 5-02 where alcoholic beverages are sold, dispensed, and

consumed by guests on the premises. The term does not include a liquor store, gas

station, grocery store, or convenience store.

3. "Charitable organization" means an organization whose primary purpose is for relief of

poor, distressed, underprivileged, diseased, elderly, or abused persons, prevention of

cruelty to children or animals, or similar condition of public concern.

4. "Civic and service organization" means an organization whose primary purpose is to

promote the common good and social welfare of a community as a sertoma, lion,

rotary, jaycee, kiwanis, or similar organization.

5. "Closely related organization" means an organization that controls, is controlled by, or

is under common control with another organization. Control exists when an

organization has the authority or ability to elect, appoint, or remove a majority of the

officers or directors of another organization or, by policy, contract, or otherwise, has

the authority or ability to directly or indirectly direct or cause the direction of the

management or policies of another organization.

6. "Distributor" means a person that sells, markets, or distributes equipment designed for

use in the conduct of games.

7. "Educational organization" means a nonprofit public or private elementary or

secondary school, two-year or four-year college, or university.

8. "Electronic pull tab device" means a device, approved by the attorney general, which

electronically displays pull tabs.

9. "Eligible organization" means a veterans, charitable, educational, religious, fraternal,

civic and service, public safety, or public-spirited organization domiciled in North

Dakota or authorized by the secretary of state as a foreign corporation under chapter

10-33, incorporated as a nonprofit organization, and which has been regularly and

actively fulfilling its primary purpose within this state during the two immediately

preceding years. However, an educational organization does not need to be

incorporated or be in existence for two years. An organization's primary purpose may

not involve the conduct of games. The organization may be issued a license by the

attorney general. For purposes of this section, a foreign corporation authorized under

chapter 10-33 is not an eligible organization unless authorized to conduct a raffle

under chapter 20.1-04 or 20.1-08 and may not conduct a game other than a raffle

under chapter 20.1-04 or 20.1-08.

10. "Fraternal organization" means an organization, except a school fraternity, which is a

branch, lodge, or chapter of a national or state organization and exists for the common

business, brotherhood, or other interests of its members. The organization must have

qualified for exemption from federal income tax under section 501(c)(8) or 501(c)(10)

of the Internal Revenue Code.

11. "Games" means games of chance.

12. "Gross proceeds" means all cash and checks received from conducting games.

13. "Licensed organization" means an eligible organization licensed by the attorney

general.

14. "Manufacturer" means, for a pull tab or bingo card, a person who designs, prints,

assembles, or produces the product. For a pull tab dispensing device, electronic pull

tab device operating system, bingo card marking device, or electronic raffle system, a

manufacturer means the person who directly controls and manages development of

and owns the rights to the proprietary software encoded on a processing chip that

enables the device or system to operate.
who designs, prints,

assembles, or produces the product. For a pull tab dispensing device, electronic pull

tab device operating system, bingo card marking device, or electronic raffle system, a

manufacturer means the person who directly controls and manages development of

and owns the rights to the proprietary software encoded on a processing chip that

enables the device or system to operate.

15. "Net income" means gross proceeds less cash prizes, cost of merchandise prizes, and

expenses to conduct the gaming activity.

16. "Net proceeds" means adjusted gross proceeds less allowable expenses and gaming

tax.

17. "Permit" means a local permit or restricted event permit issued by a governing body of

a city or county to a nonprofit organization or group of people domiciled in North

Dakota.

18. "Person" means any person, partnership, corporation, limited liability company,

association, or organization.

19. "Prize board" means a board used with pull tabs to award cash or merchandise prizes.

20. "Public safety organization" means an organization whose primary purpose is to

provide firefighting, ambulance service, crime prevention, or similar emergency

assistance.

21. "Public-spirited organization" means an organization whose primary purpose is for

scientific research, amateur sports competition, safety, literary, arts, preservation of

cultural heritage, educational activities, educational public service, youth, economic

development, tourism, community medical care, community recreation, or similar

organization, which does not meet the definition of any other type of eligible

organization. However, a nonprofit organization or a group of people recognized as a

public-spirited organization by a governing body of a city or county for obtaining a

permit does not need to meet this definition.

22. "Pull tab" means a folded or banded ticket or jar ticket, a pull tab card with break-open

tabs, or an electronic pull tab displaying concealed numbers or symbols or

combinations of concealed numbers and symbols which are exposed by a player to

determine the outcome. The terms "pull tab" and "jar ticket" are used interchangeably

unless otherwise stated. A winning pull tab contains certain symbols, numbers, or

combinations of symbols and numbers and may contain multiple winning symbols,

numbers, or combinations of symbols and numbers which have been previously

designated as winning symbols or numbers.

23. "Religious organization" means a church, body of communicants, or group gathered in

common membership whose primary purpose is for advancement of religion, mutual

support and edification in piety, worship, and religious observances.

24. "Veterans organization" means any congressionally chartered post organization, or

any branch or lodge or chapter of a nonprofit national or state organization whose

membership consists of individuals who are or were members of the armed services or

forces of the United States. The organization must have qualified for exemption from

federal income tax under section 501(c)(19) of the Internal Revenue Code.

## Nearby sections

- [N.D. Cent. Code § 53-06.1-01 53-06.1-01. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_ND_T53_C53-06.1_S53-06.1-01.md)
- [N.D. Cent. Code § 53-06.1-01.1 53-06.1-01.1. Gaming commission](https://www.frixlaw.com/law-library/statutes/STATE_ND_T53_C53-06.1_S53-06.1-01.1.md)
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- [N.D. Cent. Code § 53-06.1-03.4 53-06.1-03.4. Electronic video gaming devices - Limit on rent](https://www.frixlaw.com/law-library/statutes/STATE_ND_T53_C53-06.1_S53-06.1-03.4.md)
- [N.D. Cent. Code § 53-06.1-04 53-06.1-04. College fraternities and sororities allowed to conduct raffles, sports pools, and bingo - Use of proceeds](https://www.frixlaw.com/law-library/statutes/STATE_ND_T53_C53-06.1_S53-06.1-04.md)
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- [N.D. Cent. Code § 53-06.1-05.1 53-06.1-05.1. Regulation by city or county of number of twenty-one tables per site and number of sites per licensed organization](https://www.frixlaw.com/law-library/statutes/STATE_ND_T53_C53-06.1_S53-06.1-05.1.md)
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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_ND_T53_C53-06.1_S53-06.1-01. Check the current official text before relying on it. Not legal advice.
