Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska, announced the development of a new casino in South Sioux City, Nebraska will be delayed. Ho-Chunk Chief Executive Officer Lance Morgan said the tribe recently received provisional gaming licenses for its WarHorse casinos in Omaha and Lincoln, which have more funding and resources than the Sioux City project.
Morgan stated, “It’s been harder to line up the financing for South Sioux, so we’re going to fund it internally, but we only have so many resources, both in terms of people and in terms of capital. And since Omaha and Lincoln are larger markets, that’s where we’re going to focus.”
Morgan said the new South Sioux City casino, located about a mile away from Atokad Park, will be finished about six to12 months after the Omaha and Lincoln facilities are completed and create 200 new jobs.
WarHorse Gaming and the Nebraska Horsemen’s Benevolent and Protective Association applied for licenses for proposed Lincoln and Omaha casinos on June 2−the same day the Nebraska Racing and Gaming Commission approved the licensing fee structure. Provisional licenses are granted for 90 days; they do not authorize operators to commence gaming, but they provide the necessary documentation for arranging financing and ordering equipment.
Lynne McNally, executive vice president of the horsemen’s group, said WarHorse plans to break ground on the Omaha project this summer and open a temporary facility with 800 slot machines within 10 months.
A temporary casino would also open in Lincoln, with 300 slots. The permanent $220 million casino at Lincoln Race Course will offer more than 1,200 gaming stations, a 196-room hotel, event space, spa and several restaurants. Construction is expected to take 18-24 months to complete.
McNally recently said WarHorse is seeking to borrow $560 million to finance casino construction, which also includes $80 for the South Sioux City facility. She said WarHorse has no immediate plans to apply for a gaming license for that venue; she said, “It’s been more of a struggle to line up financing for that project, due to a saturated gaming market in metro Sioux City.”
A gaming license will cost $5 million for a 5-year term, including an initial $1 million payment due at the time of application and $1 million per year thereafter.
In Grand Island, Fonner Park officials said a temporary casino with 200 slots will open this fall. In addition, Caesars Entertainment will open a Harrah’s Casino in Columbus by the second half of 2023. The Chickasaw Nation also plans to develop a new racino in Hastings.
Proposals for six other racinos are on hold since the legislature in April passed a moratorium on any new operations until the Racing and Gaming Commission can complete studies of the horse racing and casino markets and their socioeconomic impact.
