Nebraska Secretary of State Bob Evnen recently blocked an initiative proposal authorizing casino gambling at Atokad Park in South Sioux City and other state horseracing tracks from appearing on the November 2 ballot. The secretary of state is required to certify the November general election ballot by September 11.
Evnen ruled even though the three proposed gambling initiatives had enough signatures to be placed on the ballot, they did not comply with a state requirement that the measures stick to one subject with clear language. The initiatives were backed by Ho-Chunk Inc., the economic arm of the Winnebago Tribe of Nebraska.
Evnen noted, “The constitutional right to bring forward initiative petitions for a vote of the people is fundamental to our state governance and is to be zealously protected. But part of the protection of the right of initiative is to assure such petitions are neither misleading nor manipulative.”
The initiatives would amend the state constitution to legalize casino gambling at horseracing tracks, establish laws regulating and taxing the industry and directing revenue toward lowering local property taxes.
Ho-Chunk President and Chief Executive Officer Lance Morgan said Keep the Money in Nebraska, sponsors of the signature drive, will take the issue to court. “It seems to me that political considerations” were behind the decision to deny the initiatives from appearing on the ballot, Morgan said. He noted Evnen questioned the initiatives “on the exact day that Governor Pete Ricketts wrote a column opposing expanded gambling.”
Morgan commented the petitions were signed by 475,000 Nebraskans, “more than voted for Evnen in 2018 when he was elected with 406,000 votes. I looked it up.”
Morgan said Keep the Money in Nebraska estimated reopening Atokad Park as a racino would have an economic impact of $8.3 million annually, create 87 jobs and generate $1 million in state and local taxes. Statewide, a study showed six proposed casinos would produce more than $300 million a year in gambling revenues and create more than 4,500 new jobs. Besides South Sioux City, racetracks in or near Omaha, Lincoln, Grand Island, Hastings and Columbus also would have been allowed to offer casino gambling.
Nebraska Horsemen’s Benevolent and Protective Association Executive Vice President Lynne McNally stated her group will succeed in court. “The secretary of state specifically is denying Nebraskans their constitutional right to make a decision on this issue,” she said.
Ricketts said he agrees with Evnen’s “thoughtful analysis.” He said the initiatives would not only allow gambling on tribal lands but also could “potentially expand Indian gambling across Nebraska.”
Pat Loontjer, executive director of the anti-gambling group Gambling With the Good Life, said the proposal to allow “unlimited casino gambling all over the state would have been devastating to our businesses and families.” She said she expects the Nebraska Supreme Court to eventually rule on the issue.
A similar petition drive in 2016 failed to reach the ballot after then-Secretary of State John Gale’s office rejected nearly 42,000 signatures, causing the initiatives to fall short of the required number. Ho-Chunk later sued the company it had hired to circulate the petitions; that lawsuit is pending.
Winnebago-based Ho-Chunk acquired Atokad in 2013. The original track closed because of falling attendance. Ho-Chunk built a new track there and holds live racing one day a year, the minimum required by state regulators. It plans to build a casino and events center at the racetrack if expanded gambling eventually succeeds.
