Nebraska Legislators Reject Gambling Bill

In a 27-16 vote, Nebraska state senators squashed a bill that would have asked voters to let the legislature expand gambling via a majority vote. State Senator Paul Schumacher, the bill's sponsor, said the measure would keep in the state some of the $300 million-$400 million Nebraskans spend at casinos in neighboring states.

Nebraska state senators recently voted 27-16 to indefinitely postpone LR 10CA, a proposed ballot measure that would have asked voters to allow the legislature to expand gambling through a simple majority vote. Introduced by state Senator Paul Schumacher, the bill faced strong opposition from anti-gambling groups. State Senator Beau McCoy said when it comes to gambling, “that the legislature should not have the preeminent place for that. It should be the people of Nebraska making that decision of whether or not they want to expand gambling.” He added the state should maintain its current system that allows expanded gambling only if voters approve a constitutional amendment.

Schumacher said over time the Nebraska Constitution has been amended to permit the legislature to decide numerous issues that previously only were decided through a vote of the people, including horseracing and lotteries. He noted the proposal would have helped Nebraska compete with neighboring states where Nebraskans spend $300-$400 million on gambling. “The question is whether sovereigns should be able to respond to raids on their resources by neighboring sovereigns,” he said.

Legalized gambling in Nebraska includes horserace betting, state lottery and charitable gaming such as keno and pickle cards. The state also allows tribal gaming, such as the Ohiya Casino operated by the Santee Sioux Tribe in northern Knox County. The tribe recently built a new casino along Nebraska Highway 12 and will open a golf course later this year.

Voters have rejected off-track betting, casinos and slot machines. In 2006, an initiative that would have allowed video keno games lost 61-39 percent. In 2004 voters rejected to casino proposals.

Other gaming bills in the current session include LB 70, a tax on illegal slots, currently promoted as games of skill; LB 250, which would allow less than five minutes between keno games; and LB 619, which would permit poker rooms at bars.