Nebraska-based Big Red Keno has filed suit in Lancaster County District Court alleging that it has a contract that gives it the right to operate expanded gaming at the Lincoln horse racing track.
The contract, which Big Red Keno says is valid until 2033, is with the Omaha Exposition Racing Inc. and the Lincoln Race Course, the same course where the Ho-Chunk Inc of the Winnebago Tribe and the Nebraska Horsemen’s Benevolent and Protective Association have announced plans for a $220-million hotel and casino resort. The land is owned by the association.
The project was announced after Nebraska voters approved of a casino at the racetrack. Sixty-five percent approved Initiative 429 which amended the state constitution to allow “all forms of games of chance” by “authorized gaming operators within a licensed racetrack enclosure.”
Last month the legislature approved enabling legislation that approved sports betting at racetracks.
Big Red Keno points to this section of its contract: “If additional gambling activities are legalized in the future and you wish to offer those activities at the premises, we agree to use our best efforts to make those activities available to you on mutually agreed terms.”
An attorney for Big Red Keno issued this statement: “Despite Big Red Keno’s efforts to discuss the matter with Lincoln Race Course, Lincoln Race Course refused to honor the contract and has proceeded to breach the contract by moving forward with services from another provider.”
Omaha Exposition and Racing has countered that it is not expanding gaming. It leases the property from the association to operate racing and is not granted exclusive rights to the property.
Ho-Chunk Inc. said the lawsuit is an issue between Omaha Exposition Racing and Big Red Keno.
In a separate but related development, Prospect Enterprises LLC is seeking permits from the city of North Platte and the Nebraska Racing and Gaming Commission that will allow it to build a horseracing track on 73.58 acres south of Interstate 80. Under the terms of the measure passed by the voters last November, the company would be able to put a casino at the location.
According to its application, approval “will drive more economic resources to the community by adding jobs, supply and service needs to maintain and operate the facility and the customer needs generated from the operation of their businesses.”
The commission will have to approval the projects racetrack license as well as the type of racing permitted there.
