Overriding the opinions of state’s attorney general, the Nebraska Racing Commission recently voted 3-2 to authorize historical horseracing machines at the state’s thoroughbred racetracks. The board had approved the machines in October, but later nullified that vote due to suggestions the meeting violated state open-meeting rules.
Fonner Park Chief Executive Officer Chris Kotulak said the board’s decision would generate millions of dollars for the state and help its struggling thoroughbred racetracks. “It will be the urgent shot in the arm to help the horseracing industry. The surrounding states that offer thoroughbred racing all have additional gaming that supplements their purse money. They’re taking away the horses and trainers,” he said.
Kotulak said “hundreds” of the PariMax betting machines would be installed at racetracks in Grand Island, Omaha, Lincoln, Columbus and South Sioux City. He said he hoped Fonner Park could have the machines operational this fall. But he noted, “I’m certain there will be a legal challenge.”
Pat Loontjer, director of the anti-gambling group Gambling with the Good Life, said her group will provide that legal challenge, quickly. “It’s a slot machine. It walks like a duck, it talks like a duck—it’s a duck.”
A spokeswoman for the Nebraska attorney general’s office said it will provide an “appropriate response” after reviewing the commission’s final order. In January, the attorney general’s office warned the racing commission it would not defend it if it were sued over allowing the machines. Assistant Attorney General Laura Nigro told the board their vote would be illegal since only the legislature or state voters could approve expanded gambling.
But commission Chairman Dennis Lee, an Omaha attorney, previously said the commission does have the legal authority to regulate parimutuel betting in the state. He noted in Kentucky similar historical horseracing machines were ruled to be legal after a lengthy legal battle. Kotulak said, “Even though the devices look like slot machines, it is parimutuel wagering.”
In 2012 then-governor David Heineman vetoed legislation allowing historical horseracing machines and in 2014 the Nebraska Supreme Court issued a ruling to keep the issue off the state ballot. A petition drive has begun to place on the 2020 ballot a referendum regarding casino gambling at the state’s racetracks.
