Nebraska Group Nears Goal

Keep the Money in Nebraska is close to raising $1 million and gathering enough signatures in an effort to allow casino gambling in state-licensed horse racetracks. The group said Nebraska could gain an additional $120 million in tax revenue and help the state's horse racing industry if casino gambling were legalized.

Former state Senator Scott Lautenbaugh, a spokesman for Keep the Money in Nebraska, recently said the group, which is pushing for casino gambling at Nebraska horse racetracks, has raised nearly million and most likely will succeed in placing the issue on the November ballot. “We’re confident we’re going to make it,” Lautenbaugh said. He added the campaign is ahead of schedule and has met signature goals in several counties. The group’s petition drive began last September.

Keep the Money in Nebraska said the state could realize an additional $120 million in tax revenue if casino gambling were legalized, providing money to save the state’s thoroughbred horse racing industry. Slot machines only would be allowed at state-licensed racetracks in Omaha, Lincoln, Grand Island, Columbus and Hastings. In addition, Lance Morgan, chief executive officer of Ho-Chunk, the economic development arm of the Winnebago Tribe of Nebraska, said if the issue passes, the tribe would reopen the former Atokad racetrack it owns in South Sioux City and open a casino there.

Keep the Money in Nebraska is circulating three petitions. One is a state constitutional amendment that would allow games of chance at licensed racetracks. The other two petitions propose changes in state law to regulate gambling at licensed racetracks and to direct how revenues from taxes on gambling would be divided. The group has proposed a 20 percent tax on gross gambling revenues, with three-quarters of those funds going to the state and one-quarter to local governments where casinos are located.

To qualify for the November ballot, the proposed constitutional amendment requires 113,900 valid signatures. The statutory changes require about 79,700 signatures. The drive also has to collect signatures from at least 5 percent of registered voters in a minimum of 38 counties. The signatures are due by July 7.

State campaign finance reports indicate Keep the Money in Nebraska had raised $904,167 through March 26. Ho-Chunk provided about 97 percent of those funds, or $875,007.

The opposition group, Gambling with the Good Life, reported raising about $12,500 in recent months, and has $97,000 in the bank. The group’s president, Pat Loontjer, said, “We’re not throwing in the towel yet, but $1 million will buy you a lot of signatures.” She said her group has not yet asked people for funds because the petition drive may not succeed. But she admitted she expects Keep the Money in Nebraska to outspend her group “25 to 1.”

Loontjer said Governor Pete Ricketts has donated funds to Gambling with the Good Life in the past and is a former board member of the group. She added the owners of Council Bluffs casinos would oppose Keep the Money in Nebraska’s efforts and raise money to protect their interests. That happened in 2006 when a group called Committee for Better Schools and More Jobs in Nebraska—primarily supported by Boyd Gaming of Las Vegas–spent $2.1 million to get expanded gambling on the ballot. Voters rejected the ballot issues.

Morgan noted Ho-Chunk plans to spend “what it takes to win” approval of the current gambling proposals. “Obviously, it’s an expensive gamble because it may not win. Everyone I talk to thinks it’s time” to allow casino gambling in Nebraska and keep the estimated $500 million Nebraskans wager at casinos in other states, he said. Morgan added he’s confident voters will approve the gambling proposals if they make it onto the November ballot.

Loontjer stated, “This is all because they want Indian casinos all over the state. They don’t have any interest in saving live horse racing. They know if they change the constitution, they could have unlimited Indian casinos in the state.”