In a recent address to the South Sioux City Chamber of Commerce, Nebraska Governor Pete Ricketts raised objections to a proposed ballot measure to legalize casinos in the state. In particular, he focused on Ho-Chunk Inc.’s proposed gambling center at the former Atokad Downs dog racetrack in Sioux City.
“For every dollar you collect in tax revenues, you are spending three dollars in social services, whether it is child abuse, spousal abuse, embezzlement. So, gambling is not an economic driver for the state,” said Ricketts, an Omaha businessman who won his first term as governor in 2014. He cited a study of medium-sized counties in neighboring Iowa, indicating money going to businesses and coming to the state in sales taxes are lower in counties with casinos compared to those without gambling.
Officials at Ho-Chunk, the economic development arm of the Winnebago Tribe of Nebraska, said they would build a new short track with bleachers near the finish line and a 6,000 square foot building with a full kitchen and sports bar accommodating up to 250 people, as well as a simulcast center at the Atokad site, which it purchased in 2013. Development Director Alexcia Boggs stated no matter whether the casino ballot issue passes or not, Ho-Chunk plans to construct the track this summer and run a race in September. Track officials are waiting for license approval from the state racing commission.
Ho-Chunk has contributed more than $700,000 to the pro-gambling group Keep the Money in Nebraska, which has been circulating petitions for a constitutional amendment to legalize casinos at the state’s horse racetracks. The group hopes to place the ballot measure before voters in November. It claims in recent years the state has lost billions of dollars as Nebraskans seek gambling options elsewhere.
Four tribes currently operate one casino each in Nebraska. The newest, the Ohiya Casino & Resort in Niobrara, opened in 2013.
