Some 70 percent of the tax revenues from casinos in Nebraska will go towards property tax relief. Just how much that figure comes to is open to conjecture. One source predicted $63 million a year from the six casinos expected to be built at racetracks around the state. Another prediction put the number at $82 million, and closer to $98 million if two more tracks were licensed.
But Anthony Lucas, a professor of casino management at the University of Nevada, Las Vegas, warned that collection depends on the number, location, and quality of the facilities, according to the Omaha World-Herald. Driving distance is another factor.
“That’s why you see these estimates are all over the place,” he said. “This is a pretty common problem for new jurisdictions.”
Nebraska legalized casinos last year, but only at racetracks. Casinos pay a 20 percent tax on gross gambling revenue. Casino startup prices in Nebraska comes to $1 million
Besides the property tax relief, the rest of the gambling tax gets divvied up between the city and county where the track is located, state government and the Compulsive Gamblers Assistance Fund.
During the casino campaign, Keep the Money in Nebraska, the group pushing the initiatives estimated casino revenue at about $325 million, which would yield $45.5 million in property tax relief, a number now considered low.
Lance Morgan, president and CEO of Ho-Chunk Inc., part of the Winnebago Tribe of Nebraska, said newer predictions place revenue near $450 million, with property tax relief somewhere around $63 million.
Sean Boyd, president of Global Gaming Nebraska, part of the Chickasaw Nation of Oklahoma, estimated that casinos at the six current tracks could produce about $583 million in revenue and almost $82 million for property tax relief. Adding casinos to potential tracks in North Platte and Gering would push revenue close to $698 million and the property tax money almost $100 million.
He said the projections were based on a proprietary model that considers such things as population, drive times, other forms of entertainment and competition. The model also looks at area residents’ “propensity to game.”
“The findings of this study verify our belief that western Nebraska is an untapped market for this type of entertainment facility,” Boyd said. “We believe we can deliver revenue to the state and, in turn, to property tax relief.”
Morgan says the high revenue numbers are about getting support for the new tracks.
“They’re looking for a big number because they want to sell the concept,” he said. “I think the average Nebraskan can smell when they are being manipulated.”
In the meantime, state Senator Tom Briese, who chairs the General Affairs Committee, plans legislation in January to limit the number of track/casino combinations. One idea requires track/casinos to be at least 50 miles apart and to have a minimum number of race days.
“I think it’s fair to say that Nebraskans don’t want a casino at every I-80 interchange or every county seat,” he said. “You want to end up with something that is economically viable and competitive.”
