Following Nebraska voters’ approval of Las Vegas-style gambling at the state’s horse racetracks, Ho-Chunk Inc., the economic development agency of the Winnebago Tribe, formed WarHorse Gaming LLC to manage new casinos at racetracks in South Sioux City, Omaha and Lincoln. The company plans to invest $300 million in the new casinos. Ho-Chunk Chief Executive Officer Lance Morgan said, “This represented a large investment for us. I think it’s going to be a huge deal for Nebraska.”
Nearly 65 percent of voters approved three ballot initiatives that would amend the state’s constitution to permit casinos at the six licensed horseracing tracks, with some of the revenue directed to property tax relief and local governments. “You don’t get more of a mandate than 65-70 percent on something. For it to come through, with all the hurdles, is a huge deal,” Morgan said.
Observers said the initiatives passed after decades of effort due to the public’s increasing acceptance of gambling, the spread of casinos in neighboring states, the appeal of property tax relief and the Nebraska Supreme Court’s unexpected decision to allowing the proposals to appear on the ballot. State Senator Adam Morfeld commented, “It was the issue’s time.”
Proponents of the ballot issues claim Nebraskans spend more than $500 million at casinos in Iowa and other states every year. Governor Pete Ricketts, former Nebraska football coach Tom Osborne and others who oppose the new casinos claim the new venues would result in more bankruptcies, crime and other problem gambling issues.
Now it’s up to Ricketts to approve the three ballot measures. In a statement, he said, “Nebraska will respect the will of the people and the decision they made on Election Day.” Mike Newlin, chief executive officer and general manager at Lincoln Race Course and Horsemen’s Park in Omaha, said with the majority of voters clearly supporting the gambling issues, Ricketts should not take too long. “They made their voices heard, and loudly, and I hope the governor hears this,” Newlin said.
Morgan said construction is expected to start in South Sioux City in the spring, with Lincoln and Omaha tracks, which already have facilities, following about six months later. He added the Atokad Park racetrack in South Sioux City, owned by Ho-Chunk and consisting of only a track, would open nine months later. For several years, Ho-Chunk has held just one live racing date there, the minimum required to keep a state license. Gambling also now is authorized at Ag Park in Columbus and Fairplay Park in Hastings.
Ho-Chunk heavily financed the group Keep the Money in Nebraska to place the three measures on the ballot, despite Secretary of State Bob Evnen’s attempts to keep them off; the Nebraska Supreme Court intervened to let the measures move forward. The Nebraska Horsemen’s Benevolent and Protective Association will partner with Ho-Chunk’s WarHorse Gaming to manage the new casinos at the three tracks.
The Lincoln Race Course, with its new 7-furlong racetrack, is expected to become “the crown jewel of the state out of the gate,” Newlin said, noting the earliest it could open would be late 2021. The new racino could create 1,500 jobs and generate $100 million in local economic impact and $15 million in state and local tax revenue annually, Newlin said. Some of that money also would help the state’s horseracing industry. Eventually the property adjacent to Lincoln Race Course could offer a hotel and steakhouse. Newlin also noted the racetrack could change from hosting a couple of live races to full race cards up to 60 days a year.
At Fonner Park in Grand Island, Chief Executive Officer Chris Kotulak said casino gambling revenue will allow the facility to offer larger purses and attract fuller fields for live races. He said, “We expect the track to maintain the same first position on the calendar that we’ve held since 1954,” which gives Fonner “an 11-week span from the end of February until the first Saturday in May.”
Kotulak added Fonner officials began discussing partnerships with a casino developer prior to election day. “Our board has had preliminary discussions on the prospect of a casino being developed here at Fonner Park and there is not any concrete opposition to it. The windfall of casino profit that would go towards stimulating the racing industry will regenerate the whole Nebraska thoroughbred industry and make us competitive with the nearby states.”
Of course not everyone is thrilled that the initiatives passed. Pat Loontjer, founder of the anti-gambling group Gambling With the Good Life has been fighting against this moment for 25 year. “We thought the Supreme Court would agree with us, and they didn’t. It never should have been on the ballot.” She added, “Twenty-five years and they killed it in one vote. Nebraska will never be the same. We just became Nevada overnight.”
But Lynne McNally, executive vice president at the Nebraska Horsemen’s Benevolent and Protective Association, disagreed. “People don’t see this as the big scary thing that’s only permitted in Las Vegas,” McNally said.
Meanwhile, Iowa casino officials are concerned about the impact Nebraska racinos could have on their operations in Council Bluffs, with four casinos, as well as Sioux City, Onawa and Sloan—venues that already are feeling the impact of Covid-19. Wes Ehrecke, president of the Iowa Gaming Association, said, “We’re still trying to rebound in all the markets because of Covid-19. To have something like this coming online could have a ripple effect.”
