Nebraska Gambling Initiatives Will Benefit Racing

Nebraska voters overwhelmingly approved three initiatives that will greatly benefit horseracing. Purses at Fonner Park in Grand Island will increase, said Chief Executive Officer Chris Kotulak (l.), similar to those being offered in Iowa, Minnesota, Oklahoma and Wyoming. "We will now be on par with them," he said. Kotulak anticipates some form of casino gambling will launch next year.

Nebraska Gambling Initiatives Will Benefit Racing

Three gambling initiatives that passed in Nebraska on November 3 will allow casinos at licensed horseracing tracks and direct most of the tax revenue to property tax relief across the state. “This is going to be a tremendous lifeline for the Nebraska thoroughbred industry. So that’s good for Fonner Park. That’s good for horsemen. And that’s good for Nebraska agriculture, for the farmers and horse breeders,” said

Fonner Park Chief Executive Officer Chris Kotulak.

He pointed out casino revenue will allow the racetrack to increase purses and breeder incentive and awards. For example, he said, 60 percent of a $10,000 race would go to the winning owner, 20 percent to the second-place owner and 7 percent to third place. However, Kotulak said, “The problem is we don’t have a lot of races with $10,000 purse. We have a lot of races with $5,000 purses. And so the horsemen and the owners are pretty much racing for peanuts.”

By doubling the purse structure, “now we can be competitive. And we can have a stronger racing product to offer. Because currently the kind of purse money that we believe we will offer is being offered in Iowa and Minnesota and Oklahoma and Wyoming, where we get our horsemen. We will now be on par with them,” Kotulak said.

He anticipates “we would start to have some form of casino operation underway here in the coming year, 2021. Casino gaming probably will come in stages, “meaning we would very likely use some form of the existing facility whilst another phase would be planned for later development,” Kotulak said. The first step toward opening a casino, however, is for the governor to name a gaming commission to regulate the games.

All forms of Class I casino gaming will be permitted, including craps, blackjack, roulette, card games “and naturally slot machines which typically generate more than 80 percent of casino revenue,” he said.

Kotulak said it’s possible the casino could be operated by Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska, which financed the majority of the pro-gambling campaign. “Ho Chunk Inc. is only one of possibly 50 casino operators that are available to us. Ho-Chuck Inc. has an agreement with the racetrack in South Sioux City, Nebraska, Omaha and Lincoln. And that is their business. They have an agreement. We can make an agreement with any casino operator we so choose, or any casino management we so choose, including Ho Chunk Inc., but it could be any other of the casinos that are out there,” Kotulak said.

A Fonner Park casino could create “easily a few hundred jobs that just were not here before. These would be jobs in food and beverage, hospitality, IT, marketing, security, surveillance and so on,” he said.

Kotulak pointed out Fonner’s race season ends in May, so any benefits of casino gaming for local horsemen may not materialize “until after the race meet,” he said. Tracks in Lincoln, Omaha and Columbus could benefit in 2021 because they race into August and September. “Those tracks will have a better opportunity to become operational” and provide money to horsemen in 2021”, he said.

Grand Island Chamber of Commerce President Cindy Johnson noted, “Not only did the casino measures pass, they passed overwhelmingly. Gambling is not new to Nebraska or Grand Island. Keno and lottery tickets are two options already in existence. Additionally, Fonner Park and its legacy of horseracing has been a longstanding entertainment (and gambling) tradition in Grand Island. Casinos will add to our array of entertainment options. At the same time, the casino will help promote and support horseracing.”