Nebraska receives new racetrack casino proposal from an investment firm in Fremont

Nebraska has received a new proposal for a casino from KRG Investment Group, which is seeking to build a racing and gambling venue in Fremont. The property would add to the six licensed racetracks that are currently eligible to build casinos under Nebraska law, although it is unclear if regulators will greenlight the development of new venues statewide.

Paul Bauer, a real estate agent with kwElite in Omaha, who represents KRG, told the Omaha World-Herald, that Fremont seems “well positioned" to build and host a new horse-racing facility with an accompanying gambling and hotel venue.

“We’re in the early stages of due diligence discussions with the City of Fremont," Bauer told the publication. "And the City of Fremont actually identified four potential sites for us.”

However, the members of the Nebraska Racing and Gaming Commission are yet to confirm if they favor authorizing additional racetrack casinos at this time. Gambling opponents have urged for a pause in granting new licenses until the impact of existing ones can be assessed.

Horsemen's Park, Omaha, Nebraska

State approval for new racetracks mandatory

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

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

Earlier on Friday, the commission received a market study according to which Nebraska does not need additional horse racing tracks. However, the report was heavily criticized by both industry leaders and commission members, who voted to form a panel to consider revising it or starting over and conducting a fresh study.

The six licensed racetracks currently eligible for casinos are 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.

Since the initial slate of six racinos was approved, additional racetrack casinos have been proposed in Bellevue, Norfolk, York, North Platte, Gering, Kimball, and now Fremont. The transfer of the Hastings racetrack license to Ogallala was approved conditionally by the commission, pending the results of the market study.

In recent related news, casino gambling in Nebraska completed its first full year in December with $89 million spent on slot machines, table games, and sports betting. A significant portion of that revenue, nearly $51.5 million, was gambled at Lincoln’s WarHorse Casino, which saw $50.2 million spent on slots and $1.3 million on sports betting.