Nebraska Debates Racino Limits

Seven new horse racetracks have been proposed in Nebraska, including one that would affect Ho-Chunk’s proposed $200 million WarHorse Casino in Omaha. State Senator Tom Briese (l.) says enough is enough.

Nebraska Debates Racino Limits

In 2020, Nebraska voters approved three ballot measures allowing casino gambling at licensed horse racetracks. At the time, there were six tracks: in Omaha, Lincoln, Grand Island, Hastings, Columbus and South Sioux City. Since then, plans have been floated for seven new tracks: in Bellevue, York, Norfolk, North Platte, Ogallala, Gering and Kimball.

To stop unlimited casino development, state Senator Tom Briese, who chairs the General Affairs Committee, introduced LB 876 to put the brakes on unchecked gaming. He said he believes Nebraska voters want a “well-regulated, financially sound” casino industry. “I don’t think the public wants to see a casino at every exit on Interstate 80.”

LB 876 would set requirements for the approval of new horse racetracks in the state and as a result, limit the number of casinos. The original measure required tracks to offer at least five racing days a year, up from one currently, and it required a new track to be located at least 50 miles from other tracks. Briese has since offered an amendment that would require tracks to offer at least 15 racing days and for tracks to be at least 75 miles apart, except in counties of 100,000 or more people, including Douglas, Lancaster and Sarpy.

Lance Morgan, president and chief executive officer at Ho-Chunk Inc., the economic development arm of the of the Winnebago Tribe, said he supports the increased race days and distance restrictions. But he opposes the exemptions for large counties. He said WarHorse Gaming, a division of Ho-Chunk, has plans to a $200 million casino at Horseman’s Park in Omaha and a $220 million WarHorse Casino in Lincoln as well as a venue at Atokad in South Sioux City. “Our goal is to create a powerhouse to compete with three Iowa casinos” just across the Missouri River, Morgan said, urging lawmakers not to “tie the hands of the Omaha facility before we even get started.”

Don Wesely, a registered lobbyist for the Winnebago Tribe, noted Omaha will “need a casino that is spectacular to compete with the Council Bluffs casinos” that attract Nebraskans across the river.

Morgan noted a competing casino in Sarpy County would force Ho-Chunk to reduce its Douglas County casino proposal by $100 million and 300 jobs, and lower the number of slots from 1,700 to 1,000 or less. “The Ponca Tribe is waiting to see what happens. We’re fighting against very strong companies across the river,” Morgan said, namely casinos in Council Bluffs and Carter Lake. He stated the exemption would allow the proposed Bellevue track and casino to go forward, impacting the Omaha venue’s power to attract gambling dollars back to Nebraska and provide tax revenue to the state.

Morgan added, Iowa “has been very strategic in adding facilities that would not hurt existing casinos. We want Nebraskans to feel comfortable that there will be reasonable, not open-ended, expansion” of casinos in the state.”

John Hassett, Aksarben Equine director, said studies show the metropolitan Omaha area can accommodate two casinos, which would “generate more money for property tax relief.” Bellevue Mayor Rusty Hike added, “I do not believe the legislature should pick winners and losers

Tom Sage, executive director of the Nebraska Racing and Gaming Commission, asked legislators to provide some guidance to commissioners as they debate approving or denying new racetrack proposals. The commission has taken no action on the issue to date.