The Nebraska Racing and Gaming Commission recently issued the results of a study by the Innovation Group of New Orleans, indicating the state does not need additional horse racing tracks beyond those currently licensed.
The report said, “There is more than sufficient capacity with the state’s existing six racing licenses to allow for a tripling or quadrupling of racing in Nebraska. The data do not support the addition of more racing licenses.”
According to the report, the six tracks offered 53 race days in 2022; Fonner Park in Grand Island is the only track offering a full racing schedule, including 42 race days this year.
The report said although a proposed racino in Bellevue could significantly increase gambling revenue in the state, it would lower revenue at the state’s existing racinos. The Bellevue racino would generate about $60.7 in annual revenue, with $38.5 million of that coming from other Nebraska gaming venues; WarHorse Casino at Horsemen’s Park in Omaha, now under construction, would be the hardest hit, losing $27.4 million.
Lance Morgan, chief executive officer at Ho-Chunk, the parent company of WarHorse, noted state law prohibits new racinos if they have a negative effect on the existing market. “This study kills Bellevue,” Morgan said.
However, keno operator John Hassett, an applicant for the Bellevue license, said he disagrees with Morgan’s interpretation of the state law. Hassett said the commission could approve new licenses if they are not detrimental to the state’s overall gaming market, even if they impact a particular casino. “I wonder, too, how much the racing and gaming commission should be picking the winners and losers,” Hassett said.
Hassett added Bellevue Downs would race quarter horses, so it wouldn’t compete with Thoroughbred tracks such as Horsemen’s Park. He said the report estimates 500 to 1,000 Nebraska-bred quarter horses are available to race. “The quarter horse racetrack will be a unique draw. We expect it to be very popular with the public, because quarter horse racing provides a faster-paced race experience,” Hassett told the Omaha World-Herald.
Bellevue Mayor Rusty Hike released a statement: “As a Nebraska/Iowa border community, Bellevue provides a unique opportunity to pull revenue from Southwest Iowa, Northwest Missouri, Cass County, Nebraska and Sarpy County which has a population over 200,000. Bellevue and Sarpy County should not be denied the benefits of hosting a facility.”
He said a Bellevue racino would generate more revenue than the report estimated, noting other market studies estimated annual revenue between $102 million and $112 million.
The report would seem to allow the transfer of the Hastings Exposition and Racing license to Ogallala, which also would race quarter horses. In November, commissioners gave conditional approval to the transfer, pending results of the study. Hastings Exposition and Racing is partnering with Elite Casino Resorts on the project, which analysts estimate would generate $18 million in gambling revenue for the state and not take revenue from other existing licensees.
The study was required by state lawmakers to review the statewide horse racing and casino markets and also examine the socioeconomic impact of horse racing and casino gambling statewide.
The six existing licensed racetracks eligible for casinos are: Legacy Downs in Lincoln, Fonner Park in Grand Island, Horsemen’s Park in Omaha, Atokad in South Sioux City, FairPlay Park in Hastings and Columbus Exposition and Racing in Columbus.
WarHorse is developing racinos in Lincoln, Omaha and South Sioux City in partnership with the Nebraska Horsemen’s Benevolent and Protective Association.
