Nebraska Judge Rejects Lincoln Racino Lawsuit

A Nebraska judge rejected Big Red Keno’s lawsuit over offering casino gambling at Lincoln Race Course. The judge said Omaha Exposition and Racing, which had granted Big Red Keno exclusive gaming rights, had no jurisdiction in the matter.

Nebraska Judge Rejects Lincoln Racino Lawsuit

In Nebraska, Big Red Keno’s lawsuit over who will offer casino gaming at the Lincoln Race Course was dismissed by Lancaster County District Judge Robert Otte. The ruling means the Nebraska Horsemen’s Benevolent & Protective Association can continue its partnership with Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska, to provide casino gambling at the Lincoln venue. The horsemen’s group took over management of the Lincoln and Omaha racetracks on January 1.

In June 2021, Big Red Keno sued the Nebraska Horsemen’s Benevolent & Protective Association, Lincoln Race Course, Omaha Exposition and Racing and Ho-Chunk Inc. and Warhorse, claiming Omaha Exposition and Racing was reneging on an agreement allowing Big Red Keno to provide keno gambling and any other expanded gambling through 2033. Otte ruled that Omaha Exposition and Racing did not have the authority to grant Big Red Keno such exclusive gaming rights according to its lease on the Lincoln racetrack with the horsemen’s association.

However, Otte did rule that Big Red Keno had a valid claim for damages against the Omaha Exposition and Racing. The judge gave Big Red Keno 30 days to file an amended lawsuit on that issue. Big Red Keno’s attorney said the company is considering its options, including filing an appeal.

Lance Morgan, chief executive officer of Ho-Chunk and board chairman of its casino subsidiary, Warhorse, said he never took Big Red Keno’s lawsuit seriously since it previously worked against allowing expanded gambling in Nebraska. Warhorse is planning to build a $200 million casino at Lincoln Race Course.

Morgan and Lynne McNally, chief executive officer of the horsemen’s association, said they’re awaiting final approval of casino rules and regulations by Governor Pete Ricketts, an opponent of casino gaming. Following his approval, the six existing racetracks can apply for a state gaming license; those include venues in Omaha, Lincoln, Columbus, Grand Island, South Sioux City and Hastings. Other communities that want a racino will be required to complete economic impact studies.