Nebraska Lawmaker Proposes Casino Gambling

Nebraska state Senator Russ Karpisek proposed a constitutional amendment to let voters decide if they want casino gambling. If the bill is approved, half of the casino tax revenue collected would help lower property taxes statewide, and it also would advance Ho-Chunk's proposed $30 million casino in South Sioux City.

Nebraska state Senator Russ Karpisek, now in his last year in the state legislature, recently introduced a proposed constitutional amendment that would let voters decide this fall if they want casino gambling in the state. Karpisek said Nebraskans spend about 0 million annually gambling at Iowa casinos. The Senate General Affairs Committee, which Karpisek chairs, will hold a hearing on his measure in the next few weeks. The proposal most likely would be filibustered in the full Senate, requiring 33 of the 50 senators to vote to end debate. Under Karpisek’s proposal, voters in a city or county in which a casino is proposed would have to approve it.

Karpisek said state Senator Scott Lautenbaugh’s measure, which would allow betting on historic horse races via video terminals, “stands a lot better chance” of passing since it won first round approval last year and remains alive in the current session. Last year legislators fell one vote short of overriding Governor Dave Heineman’s veto of a similar measure.

If Karpisek’s proposal makes it all the way to law, Nebraska residents would stand to benefit, since the measure calls for casino tax revenue to lower property taxes statewide. Lautenbaugh’s measure would be a “good first step” toward the development of a $30 million casino complex at the site of the former Atokad horsetrack in South Sioux City by Ho-Chunk Inc., the Winnebago Tribe of Nebraska’s economic development corporation. Ho-Chunk President and Chief Executive Officer Lance Morgan said, “In my mind, I think it’s a question of when, not if” expanded gambling is approved. Ho-Chunk, which operates WinnaVegas Casino in Sloan, Iowa, has two registered lobbyists working to advance gambling proposals in the legislature.

The Ho-Chunk Casino and Events Center could open as early as 2015 if Nebraska voters were to approve a constitutional amendment legalizing casino gambling in November, Morgan said. He noted studies indicate the new casino could capture 25 percent of the metro Sioux City gaming market in competition with the $128.5 million Hard Rock, now under construction. 

Pat Loontjer, head of Gambling With the Good Life said the anti-gambling group plans to fight Karpisek’s proposal and any other measure to expand gambling in Nebraska. She noted Karpisek’s bill is unlikely to advance in the short session that ends in April unless lawmakers designate it as a priority.