Nebraska gaming commission study suggests there's no need for additional racetrack casinos

WarHorse Casino Lincoln.

2024-01-08

United States

Reading time 3:32 min

According to a report by the Nebraska Racing and Gaming Commission, the state has no need for additional horse racing tracks beyond the ones already licensed, a finding that could halt efforts to license new tracks across the state, as well as the casinos that would accompany them.

According to the report, there is "more than sufficient capacity with the state’s existing six racing licenses to allow for a tripling or quadrupling of racing in Nebraska," adding that "the data do not support the addition of more racing licenses."

As per the report, the six existing tracks had 53 race days in 2022. Fonner Park in Grand Island is the only track that offers a full racing schedule, with 42 race days this year.

The latest report delves into the ramifications of introducing a racetrack casino in Bellevue and determines that its establishment would significantly elevate the anticipated total gambling income within the state. Nonetheless, this new casino in Bellevue would inevitably diminish the earnings of current Nebraska racetrack casinos.

The report, crafted by The Innovation Group of New Orleans, highlights WarHorse Casino at Horsemen's Park in Omaha as the most affected entity among the existing establishments.

As per the data, the Bellevue proposal would generate about $60.7 million in revenue, of which $38.5 million would come from other operators. The Omaha WarHorse casino would lose $27.4 million of that, with much of the other losses coming from the Lincoln WarHorse casino.



WarHorse Casino in Lincoln, Nebraska

Denny Lee, Commission Chairman, said that the report is a draft that could be amended or supplemented in the future. While the Chairman did not read the report, he anticipated that commissioners would review it, and the report would be placed on the commission's January 19 meeting agenda, as reported by The North Plate Telegraph.

State lawmakers required the commission to study the statewide horse-racing and casino markets and also examine the socioeconomic impact of horse-racing and casino gambling statewide.

Under state law, commissioners must consider the impact when approving or denying new licenses. The law requires the commission to deny an application for a racetrack or casino gambling license if approval would be "detrimental" to the racing or gambling market "that exists across the state" based on the market studies.

In 2020, voters in 2020 approved a ballot initiative linking casino development to racing licenses. That means that anyone who wants to build a casino in Nebraska, other than the six existing racing license holders, must get state approval for a racetrack.

Currently, there are six licensed racetracks eligible for casinos: Legacy Downs in Lincoln, Fonner Park in Grand Island, Horsemen’s Park in Omaha, Atokad in South Sioux City, FairPlay Park in Hastings, and Columbus Exposition and Racing in Columbus.

Additional racetrack casinos have been proposed in Bellevue, Norfolk, York, North Platte, Gering, and Kimball. Also proposed is the transfer of the Hastings’ license to Ogallala.

The report is generating disagreement over how it may impact the Bellevue proposal. "This study kills Bellevue," said Lance Morgan, Chief Executive Officer of Ho-Chunk Inc., the parent company of WarHorse and the economic development arm of the Winnebago Tribe of Nebraska.

WarHorse is developing racetrack casinos in Lincoln, Omaha, and South Sioux City in partnership with the Nebraska Horsemen’s Benevolent and Protective Association. According to Morgan, Bellevue’s negative impact on existing Nebraska casinos should prevent its licensing.



Lance Morgan

However, John Hassett, a keno operator and applicant for the Bellevue license, said he disagrees with Morgan’s reading of the state law. Hassett believes the commission could approve new licenses if they aren’t detrimental to the state’s overall market, regardless of whether they affect a particular casino. "I wonder, too, how much the racing and gaming commission should be picking the winners and losers," he said.

The report appears to clear the way for the transfer of the Hastings Exposition and Racing license to Ogallala as part of a proposed casino development off Interstate 80. Commissioners in November gave conditional approval to that transfer, pending the study results. Hastings Exposition and Racing is partnering with Elite Casino Resorts on the project, which would include a 5/8-mile racetrack and racing facilities, 180 hotel rooms, an event center, a travel center, an RV park, and a casino.

If Bellevue gets a casino, anticipated gaming tax revenue for Douglas County and the City of Omaha would be reduced while Sarpy County and the City of Bellevue would gain. Meanwhile, moving the Hastings license to Ogallala would add $18 million in gambling revenue to the state's income, but would not take revenue from any of the other existing licenses.



Hastings racetrack and casino would be located near Lake McConaughy

Hassett said the study shows that Bellevue would be the highest-grossing market of any Nebraska city that doesn’t currently have an approved casino. The facility would be south of Bellevue, along Fairview Road, which is south of where it was originally proposed. "It’s the largest city and by far the largest county that doesn’t have a racetrack and casino," he said.