Nebraska: WarHorse casino project at Omaha's racetrack to break ground by summer

As Nebraska comes closer to seeing its casino industry expansion, WarHorse Gaming —a subsidiary of Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska— plans to break ground this summer on its casino, racing and entertainment project at the current site of Horsemen’s Park Omaha.

Drew Niehaus, a representative for WarHorse, said he expects the groundbreaking ceremony at the Omaha location to take place sometime in mid- to late summer, Omaha World-Herald reports. When construction begins in the existing building, simulcasting will be moved to temporary trailers on the infield to continue operations.

The project involves several renovations to the existing complex as well as nearly 67,000 square feet in new construction and expansion, according to documents submitted to the City of Omaha last year. The expansive facility will hold gambling tables and more than 1,200 gaming machines, as well as live and simulcast racing. There are also plans for a live entertainment stage, multiple bars, a food hall and a coffee shop.

Once renovations are complete, a transitional facility will be set up with roughly 800 gambling machines. Niehaus said the temporary casino should be ready for public use about 10 months after the groundbreaking.

The expansion of casino gambling operations at licensed racetracks was approved by voters through a trio of ballot initiatives in 2020. But more than 18 months later, construction and renovations have yet to begin at any of the proposed locations.

According to a tax-increment financing application submitted to the city last year, WarHorse had hoped to break ground on the Omaha facility by summer 2021 and wrap up construction by September of this year. At the time, the project was expected to cost $220 million. WarHorse was awarded $17.5 million in TIF to fund the redevelopment at Horsemen’s Park, including more than $6 million allocated for offsite public improvements.

The delay in Omaha and across Nebraska is largely due to the high volume of regulatory work facing the state. “The state of Nebraska is launching an entirely new industry,” Niehaus said. “Obviously there will be amendments, but they want to get it right from the get-go.”

The Nebraska Racing and Gaming Commission formally approved a 67-page set of rules and regulations for casino gambling in December. Gov. Pete Ricketts approved the regulations earlier this month, opening the window for potential casino operators to apply for licenses.

However, before construction can begin, the gaming commission must approve an application fee structure for casino operators. The commission was scheduled to vote on the fees at its May 6 meeting, but the agenda item was laid over. Lynne McNally, EVP of the Nebraska Horsemen’s Benevolent and Protective Association, told the Lincoln Journal Star earlier this month that the fees are expected to be approved at the June 2 meeting. If fees are approved at that meeting, potential casino operators could start submitting applications as early as June 6. It will take a month or two for those applications to be processed, and the commission will then have to approve each application during its monthly meeting.

The horsemen’s group is partnering with Ho-Chunk Inc. to develop casinos under the WarHorse brand at racetracks in Omaha, Lincoln and South Sioux City.

Statewide, the development of casinos will be initially restricted to the six counties in Nebraska —Omaha, Lincoln, Columbus, Grand Island, South Sioux City and Hastings— with existing racetracks. Legislation passed last month required the Nebraska Racing and Gaming Commission to hold up proposals for new racetracks and casinos until socio-economic impact and statewide market conditions studies are finished.