A Beulah organization whose gaming operations have come under investigation by the North Dakota Attorney General has renewed its Minot gaming sites.

The Minot City Council voted Monday, July 6, to approve Beulah Convention and Visitors Bureau’s site authorizations for Comfort Suites and Uncle Maddio’s, with the stipulation that authorization will be canceled should the state later revoke the organization’s gaming license.

City Attorney Stefanie Stalheim said state action against Beulah CVB is pending.

City Clerk Mikayla McWilliams said correspondence from the state indicated there is no existing license suspension or revocation of Beulah CVB’s gaming license for either of the two Minot locations requested for renewal, although the final outcome of the case hasn’t been determined.

“They are not able to advise us on our actions, but they are not taking any formal, adverse action unless and until it is warranted,” McWilliams said.

Last March, the Attorney General’s Gaming Division announced its findings that Beulah CVB engaged in practices that did not comply with North Dakota gaming requirements, including misrepresentation of financial distributions, improper transfers of net proceeds and inaccurate reporting on official documents.

The complaint stated the Beulah CVB falsely reported disbursements of proceeds that went to itself. It reported donations that never were made and allowed a conflict of interest by a CVB board member who leased a Minot gaming site to the CVB. More than $100,000 of net proceeds were unlawfully used for ineligible purposes, including acquisition of debt and making direct disbursements to individuals, according to the complaint.

Potential remedies listed included license revocation, penalties and repayment of funds into the CVB’s Trust Account.

However, with no finalization of the case, Minot City Council members questioned whether it has cause to disapprove Beulah CVB’s site renewals.

“Without cause, can we be found to harm them if we don’t issue the license?” council member Mike Blessum asked. That could particularly be concerning if the Attorney General eventually dismisses the case, he added.

“Is that a worse path for us than simply approving it and waiting for action – should it come – from the state level. And if the state level action comes, it’s a moot point, because they’re going to lose their license anyway,” he said.

Stalheim recommended the council approve the site authorizations but make continuation of those sites contingent upon retaining a gaming license following the Attorney General’s investigation.

The council unanimously approved the site authorizations, subject to the outcome of the state investigation.