Members of the anti-gambling group Gambling with the Good Life are traveling throughout Nebraska to increase opposition to a November ballot initiative that would allow historic racing machines. Executive Director Pat Loontjer if the constitutional amendment passes, it would clear the way for the video terminals at licensed race tracks in Omaha, Lincoln, Hastings, Grand Island and Columbus. “This is the camel’s nose under the tent,” Loontjer said. He added the machines on which previously recorded horseraces are shown resemble casino-style slots and are equally addictive. Also, Loontjer noted the machines are unlikely to save the state’s struggling racetracks.
Proponents disagree, saying the machines will help Nebraska’s horseracing industry, which is losing business to casinos in neighboring states. “In no way is this expanded gambling,” said Gene McCloud, a Grand Island businessman and racehorse owner. The Nebraska Farm Bureau Federation backs the proposal due to horseracing’s ties to agriculture and its support for 4-H programs.
The measure’s sponsor, state Senator Scott Lautenbaugh, also believes the games could help revive the industry and preserve jobs. He said casino slots purely are games of chance, while the horseracing machines require a degree of skill, such as assessing a horse’s record before each race is shown on the screen; information that could identify specific horses or races is removed. The machines “can look like whatever you want them to look like. What matters is what they actually do.”
The amendment would distribute 49 percent of tax revenue the games generate to schools, 49 percent to reduce property taxes and 2 percent to a state fund for treating compulsive gamblers. Loontjer said the property tax benefit would amount to only a few cents per person annually.
In 2012 Governor Dave Heineman vetoed a bill that would have allowed the Nebraska Racing Commission to license and regulate historic horseracing terminals. However, a+ constitutional amendment does not require the governor’s approval. Nebraska lawmakers approved the amendment for the ballot with the minimum requirement of 30 votes. Voters have resisted video gambling machines although the state allows keno, horseracing and a lottery.
Nebraskans are responsible for generating $327 million in gross revenue for Iowa casinos last year, according to a consultant for the Iowa Racing and Gaming Commission. Total gross revenue for the casinos was $1.4 billion, but only 53 percent came from Iowa gamblers.
