Nebraska lawmakers are pushing ahead with a bill aimed at tightening regulations on skill gaming machines present in various establishments statewide. The bill, LB685, spearheaded by State Sen. John Lowe of Kearney, has passed its initial stages with a resounding 31-0 vote in favor.

Proposed Laws Tackle Skill Games’ Growth with Taxes and Stricter Regulations

Skill games, often found in bars, restaurants, convenience stores, and other locales, have proliferated significantly over recent years. Unlike traditional slot machines, these games require a degree of skill to win, blurring the lines between entertainment and gambling. However, concerns have been raised about their addictive nature and potential societal impacts.

The proposed legislation seeks to address these concerns by implementing several key measures, reported WOWT. Firstly, it introduces a 5% tax on the net profits generated by these machines, alongside a $100 fee per machine paid by distributors. For larger distributors with 50 or more machines, this fee would increase to $5,000. 

The generated tax revenue would be allocated to various avenues, including property tax relief, funding for enforcement measures, and contributions to the state’s tourism initiatives.

Moreover, LB685 aims to establish stricter guidelines regarding the sale of co-branded alcoholic beverages, preventing their proximity to non-alcoholic counterparts. This measure aims to mitigate potential confusion among consumers and ensure compliance with age restrictions on alcohol sales.

Nebraska Legislative Debates Highlight Concerns Over Skill Games’ Resemblance to Slot Machines

During legislative debates, concerns were voiced regarding the distinction between games of skill and games of chance. Some senators argued that these skill games essentially function as modified slot machines, emphasizing luck over skill. 

Additionally, there were apprehensions about the proliferation of these machines, with worries that they could attract criminal activity and exacerbate societal issues.

However, proponents of the bill argue that tighter regulations are necessary to prevent the unchecked expansion of skill gaming establishments. 

Last year Nebraska faced a surge in skill games with over 4,700 units spread across retail venues, prompting lawmakers to reassess regulation and taxation. Concerns mounted over addiction risks and unlevel competition, leading to calls for increased oversight and enforcement, mirroring similar debates in other US states like Pennsylvania and Virginia.

By imposing taxes and enforcing revenue thresholds, the Alabama legislation aims to deter the creation of de facto casinos and promote responsible gaming practices.The bill’s advancement marks a significant step towards addressing the complexities surrounding skill gaming in Nebraska. As the debate continues, legislators are tasked with striking a balance between fostering economic opportunities and safeguarding the well-being of communities across the state.

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Since 2018 when the US Supreme Court struck down PASPA, sports betting expanded rapidly across the country. By now, 38 US states along with DC offer some form of legal wagering, leaving a handful of states that are currently trying to legalize the activity and a several that do not have any active legislation.

Currently, Nebraska offers only retail sports betting options. The state borders Iowa, Colorado, Kansas and Wyoming, all of which offer mobile sports betting. While nearby Missouri is anticipating legalizing wagering, South Dakota, another bordering state, is offering only retail sports betting.

With some Nebraskans choosing to visit a nearby state and place sports bets online, efforts toward the legalization of mobile betting in the state continue. Besides a bill proposing the legalization of online sports betting, industry stakeholders are also exploring options to push for the legalization of the activity.

Once such effort is led by a coalition with the participation of the Winnebago Tribe of Nebraska’s economic development arm, Ho-Chunk Inc., in collaboration with leading sports betting operators, a new report reveals. As announced by the Journal Star, the coalition that supports the legalization of online sports wagering includes Ho-Chunk, along with industry giants, FanDuel and DraftKings, Caesars and BetMGM.

Support of the Public Is Important

The efforts of the coalition seek in Nebraska to evaluate the likelihood of the residents of the state to support the addition of mobile betting. This can be achieved either via efforts by lawmakers or by adding a poll to the upcoming ballot in November.

To determine the support of Nebraskans, the coalition launched a public opinion poll on the topic. The poll launched on Monday this week and will conclude at the week’s end with the results expecting to shed light on the residents’ views about mobile wagering.

Lance Morgan, Ho-Chunk’s CEO, revealed that the coalition has “big plans” that can only be achieved with support from the public. “We don’t want to do anything until we see what happens,” he explained, joking that mobile betting is “something people want.”

Moreover, Morgan spoke about a growing number of requests from bettors for online sports wagering at WarHorse’s retail betting outlet. He explained that many people would rather use their smartphone to place a wager instead of driving miles to visit a retail sportsbook or go across the border to a nearby state.

According to Morgan, a petition drive to put the issue up for a vote in November would require significant expenses. Yet, he expressed hope that if the public opinion supports the expansion of gambling with the addition of mobile betting, lawmakers will take the initiative and add the matter to the upcoming ballot.

Provided that supporters try to legalize mobile betting through a petition drive, they would need to collect approximately 122,000 signatures from residents in the state. The deadline for the collection of the valid signatures is July 2024.

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Nebraska’s launch of legal casino gaming has impacted casinos in the neighboring state of Iowa. As reported by the Omaha World-Herald, two big Council Bluffs casinos have been recording lower revenues – an impact that was also outlined in the American Gaming Association’s (AGA) Q3 revenue report.

Eastern Nebraska launched slot gaming in late 2022, following the legalization of casino-style gambling at horse racing tracks in 2020. This appears to have quickly impacted gambling revenues in Iowa, proving the Nebraska Horsemen’s Benevolent and Protective Association’s claim that much of the money in Council Bluffs’ casinos is spent by Nebraskans.

The aforementioned group represents the interests of Nebraskan horse owners and trainers and was a fervent supporter of the legalization of casino-style gaming in the state.

Iowa Expected the Impact

In the meantime, the impact of gaming in Nebraska was not entirely surprising to Iowa. The Iowa Racing and Gaming Commission pointed out that locals have expected the Council Bluffs market to go down following the launch of gambling in the neighboring state.

For reference, Iowa’s regulator said that Ameristar, Harrah’s and Horseshoe reported $460 million in revenue in FY 2022-23, down 3% ($13.2 million) year-on-year. However, the first four months of FT 2024 alone saw the three Council Bluff casinos record a decline of $10.9 million.

For reference, Ameristar recorded a decline of $2.1 million. Horseshoe got the worst of it, with revenue for the period plummeting by $9.2 million year-on-year. Harrah’s was the only property to remain somewhat stable, reporting a modest increase of $400,000 for the first four months of FY 2024.

The Full Extent of the Impact Is Yet to Be Seen

Further revenue decline may await Iowa’s casinos as the property expected to have the profoundest impact on Council Bluffs is not completed yet. This is the WarHorse Omaha property, which would completely refurbish Horsemen’s Park, turning it into a very attractive gaming destination.

WarHorse Omaha’s casino operations should launch by autumn 2024 and, according to the Iowa Racing and Gaming Commission, will further add to Council Bluff’s woes. The Omaha World-Herald added that an earlier study expects Council Bluffs’ casinos to lose as much as $183.9 million in adjusted gross receipts once Nebraska fully powers its gambling operations.

The World-Herald also spoke with Nebraskan bettors who confirmed that the new casinos are much more convenient to them. In addition, some customers appreciate the fact that their gambling money is not leaving the state.

Despite that, costs, payouts and the overall experience are higher priorities for many bettors. This means that Iowa casinos still have a chance to channel customers toward their properties by offering great gaming experiences.

The Iowa Racing and Gaming Commission concluded that local properties will continue to invest in ramping up the experience to retain their competitive edge.

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WarHorse Gaming, a division of the Winnebago Tribe’s economic development arm, Ho-Chunk, Inc., is developing two brick-and-mortar casino resorts in the state- WarHorse Casino Lincoln at the Lincoln Race Course and WarHorse Casino Omaha at Horsemen’s Park. These developments will be a game-changer for local economies, and they come at a time when sports betting has also taken root in the state.

High-Profile Venues Will Redefine Nebraska’s Hospitality Sector

The WarHorse Casino projects in Lincoln and Omaha signify a vital step forward for Nebraska’s economy. The state’s decision to allow Las Vegas-style casinos to operate at licensed horse racetracks can allow such venues to become catalysts for economic growth in their respective regions. WarHorse’s two projects aim to open next year, redefining Nebraska’s hospitality industry.

Both developments will feature ongoing expansions, eventually including on-site hotels with approximately 200 guestrooms, further enhancing their appeal as entertainment destinations. The operator’s safe gambling efforts have been instrumental in maintaining a safe and secure environment, bolstering customer confidence, and fostering an enduring reputation for quality and social responsibility.

WarHorse Casino Omaha opened a temporary gaming space in September 2022, featuring over 400 slot machines and pari-mutuel simulcast wagering. This gaming venue, set up within the infield at Horsemen’s Park, marked the beginning of the operator’s operations in Omaha. Subsequently, WarHorse Gaming applied to expand its offering by introducing sports betting at this location.

WarHorse Will Also Capitalize on the Launch of Sports Betting

The recent approval by the Nebraska Racing and Gaming Commission allowed WarHorse to offer sports wagering at select venues after 1 November. The company has partnered with Kambi for its sports betting operations, leveraging the supplier’s substantial experience in the tribal gaming industry. This collaboration reflects the WarHorse’s commitment to providing patrons with a high-quality sports wagering experience.

The launch of sports betting in Omaha holds particular significance as it coincides with the height of the football season. The NFL and the NCAA traditionally dwarf all other sports during this period, and sports fans will finally have the chance to support their favorite teams. Legalizing sports betting should also eliminate the need for cross-state trips to Iowa, bolstering the local economy.

WarHorse Casino has expertly timed its entry into Nebraska to capitalize on its expanded gaming options. The recent regulatory developments and high-profile launches should stimulate local economies, provide a source of entertainment, and enhance the state’s gaming landscape. WarHorse Gaming’s commitment to delivering a superior gaming and sports betting experience aims to transform Nebraska’s gaming industry and aid sustained growth.

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A surge in the popularity of so-called “skill games” has prompted state legislators to reexamine the regulation and taxation of these video gaming machines, now widely found in convenience stores and bars across Nebraska.

Lawmakers and Casino CEOs Sound Alarm Bells Over Unchecked Growth of “Skill Games”

The machines, which resemble traditional slot machines, have multiplied at an astonishing rate, with 4,752 units currently spread across nearly 1,600 retail locations in the state, reported The Nebraska Examiner. Since the beginning of the year, an additional 1,113 skill games have been installed, reflecting a growth rate of 27%. Approximately 900 more machines have received state permits but are yet to be deployed, raising concerns among lawmakers, problem gambling counselors, and casino operators.

Lance Morgan, President and CEO of Ho-Chunk Inc., which operates the WarHorse Casino in Lincoln, expressed his astonishment at the rapid proliferation of skill games. Unlike casinos, where slot machines require costly licenses, skill game machines can be installed after obtaining a $250 state sticker, leading to what Morgan perceives as an unlevel playing field.

State Senator John Lowe of Kearney, chair of the General Affairs Committee, has called for a public hearing at the State Capitol to address the concerns surrounding these machines. Lowe expressed his curiosity about the reasons behind the proliferation of these games, questioning whether they had inadvertently spawned a new industry.

Lawmakers Struggle with Regulation Amidst Rising Addiction Worries

While proponents of skill games argue that they involve an element of skill, critics argue that they are as addictive as traditional slot machines. David Geier, director of the Nebraska Gamblers Assistance Program, highlighted the rising concern of young gamblers engaging with these machines, which are often located in public spaces where age verification is not strictly enforced.

In response to these concerns, Albion Senator Tom Briese introduced a bill earlier this year aimed at increasing regulation and taxation on skill machines. However, the bill failed to advance, leaving the issue unresolved.

Some advocates, like Morgan, are urging for increased regulation and enforcement through the State Racing and Gaming Commission, hoping to level the playing field and address the growing issue of problem gambling associated with these skill games.

Other US states are also battling video gaming machines. A contentious debate recently took place in the Pennsylvania Senate Community, Economic, and Recreational Development Committee over the regulation of “skill games,” which have proliferated in bars, clubs, gas stations, and convenience stores across the state. A proposed bill, Senate Bill 706, aiming to regulate and tax these games, faced opposition from the state’s regulated casino industry, claiming these unregulated machines bypass gaming laws and draw patrons away from casinos. At the same time, the Supreme Court of Virginia unexpectedly reinstated the state’s ban on slots-like skill machines, reversing a lower court decision that prevented enforcement of the ban.

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However, a year after the opening of WarHorse Lincoln, the first state-licensed casino in Nebraska, these fears have proven unfounded.

Lincoln Casino Surprises with Minimal Police Calls Despite Concerns

Despite vocal concerns from notable figures like former Gov. Pete Ricketts, billionaire Warren Buffet, and former Husker football coach Tom Osborne, casino gambling in Lincoln has not led to the anticipated increase in criminal activities, reported The Lincoln Journal Star. Law enforcement data reveals that the Lincoln Police Department responded to the casino only 78 times in the past year. These calls were primarily related to minor disturbances and trespassing incidents, resulting in infrequent citations.

Lincoln Police Captain Don Scheinost, who leads LPD’s Southwest Team, expressed his surprise at the low number of incidents. He credited the casino’s cooperative staff and management for maintaining a secure environment. 

Comparatively, other public places like hospitals and grocery stores in the city have generated more calls to the police. For instance, Bryan West Campus, a local hospital, experienced 1,425 police calls, while the Walmart near Lincoln’s southeastern edge had 326 calls during the same period.

Scheinost emphasized that crimes such as car thefts and vehicle break-ins, which are largely preventable, pose more significant challenges to law enforcement. He added that concerns about casino-related crime are not prominent among Lincoln residents, noting that he has rarely been questioned about the casino’s impact on the community.

Nebraska Racing and Gaming Commission Proactively Addresses Gambling Issues

The Nebraska Racing and Gaming Commission, responsible for overseeing the state’s casinos, has proactively addressed potential issues related to gambling establishments. In an effort to prevent human trafficking, a problem sometimes associated with casinos, the commission has mandated staff training and the display of human trafficking awareness posters and hotlines in casino bathrooms.

Casey Ricketts, the director of compliance at the commission, acknowledged the possibility of future challenges but expressed confidence in their preparedness. She stated that they were trying to take a very proactive approach, emphasizing the need for collaboration among casinos, problem gaming advocates, law enforcement, and trafficking experts.

Last year Nebraska Gov. Pete Ricketts approved rules allowing casino gambling in the state, with applications that opened in June 2023. The delay was due to the Nebraska Racing and Gaming Commission finalizing the licensing fees. 

In October 2022, Nebraska also made progress toward legalizing sports betting in the state, with rules approved by the Nebraska Racing and Gaming Commission. While the exact launch date remains uncertain, sports betting will be limited to in-person bets at horse racetrack casinos. In a 2020 ballot, 65% of voters supported casino gambling to keep revenue within the state, potentially boosting Nebraska’s treasury by $60 million to $120 million annually.

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Running a legal gambling venue is a complex process. It involves licensing, approvals, equipment and more importantly, a legal framework that outlines clearly the rules. With any market, the first step involves the legalization of the activity and the establishment of a gambling regulator.

Then, this regulator ensures that licensees adhere to the rules and constantly monitors retail and online gambling activities within the jurisdiction. One such gambling expansion is currently underway in Nebraska. But one challenge the regulator in the state is reportedly facing involves manpower.

Back in 2020, Nebraska voters showed overwhelming support for the expansion of gambling activities in the state to include casino gambling via horse racetracks. Since then, much has changed, and two temporary gambling locations opened their doors to visitors. A third temporary casino, located at Platte County Agricultural Park in Columbus recently secured a license from the state gambling regulator, the Nebraska Racing and Gaming Commission (NRGC), and is expected to open its doors for visitors soon.

While the market in Nebraska seeks to grow and operators are eager to offer their services, the process of launching a gambling venue is complex and requires a lot of scrutiny, primarily from the gambling regulator. One challenge the NRGC is currently facing is the number of employees, a recent report by KETV suggests.

It was last summer when the regulator started hiring employees. Last year in June, the first license fees were received, allowing the NRGC to officially start hiring employees. In a year, from a total of three, now the regulator’s workforce is approximately 18 members. But according to Tom Sage, NRGC’s executive director, the current number of employees is “not near enough.”

More State Regulator Employees Will Be Needed

Sage explained that with more temporary and permanent casino properties opening doors, more Commission employees will be needed. He acknowledged that once Nebraska hits its full casino capacity, the NRGC may need between 50 and 60 employees.

A prime reason for that is to implement effective regulation, one that keeps minors away from the casino floors and ensures fair gambling entertainment. “We want to have personnel at these casinos 24 hours a day, and when I mean personnel, I mean state employees,” explained the Commission’s executive director.

According to Sage, the ultimate goal of the regulator is to see Nebraska residents and out-of-state guests “feel that our industry is regulated and they’re getting a fair shake.” He also spoke about the benefits gambling taxes bring to the state. Finally, Sage acknowledged that while increasing manpower can be a challenge, other states are surprised by the rate the Commission has been growing.

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This comes after the Nebraska Racing and Gaming Commission granted a license to Caesars Entertainment, Harrah’s owners, and the company’s local investors and representatives, the necessary licenses to press on with the opening.

Harrah’s Nebraska to Open Temporary Venue as Construction Lasts

This is going to be the third commercial gaming venue in the state. As the constriction of the property lasts, however, the company will be able to operate a temporary casino out of Platte County Agricultural Park in Columbus. The permanent venue is expected in 2024.

Caesars Entertainment and local investors spent a considerable amount to ensure that the project will come to fruition. The project has cost $75 million and the casino will cover an area of 40,000 square feet. Right now, the casino is supposed to commence operations with 500 slot machines and 20 table games, but expansions may be available later on.

The casino and hotel will be managed separately, with the gaming floor falling within the remit of a local partner whereas the hotel will be run by Marriott International. The temporary property is set to open on Monday, June 12, at 9 am. Harrah’s Nebraska is already looking up to fill various positions and ensure that its project is feasible.

Meanwhile, Nebraska has seen a mounting interest in casinos with WarHorse Casino Lincoln opening back in September and the Grand Island Casino at Fonner Park launching in December. The quick succession in openings is indicative of the state’s increased and sustained interest in gaming as well as the liberalization of the activity.

Expansion in Nebraska’s Casino Landscape Continues

WarHorse is presently to also expand its reach with a new $300 million project, the WarHorse Casino Omaha at Horsemen’s Park, which will be forthcoming either later this year, or as a more likely timeline puts it – in 2024. The fact that there have been so many casino projects recently is not surprising at all.

The state voted to back commercial gaming during the November 2020 election and essentially expanded racetrack casinos to Vegas-style casino resorts that feature slots, sports betting and table games, a major stride forward for the state which has long pushed back against the idea of expanding regulated gambling in any capacity. Things are now changing with Harrah’s Nebraska almost on the horizon.  

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Gambling giant Caesars Entertainment is preparing to foray into Nebraska with a new Harrah’s casino. The company, which announced its plans in 2021, has now shared an official visualization of the property.

The Harrah’s Columbus, NE Racing & Casino will mark Caesars’ entry in the state. It is made possible by the company’s agreement with Columbus Exposition and Racing and will be the home of Nebraska’s longest thoroughbred racetrack.

The racetrack, however, will not be the only notable feature of Harrah’s Columbus, NE Racing & Casino. The venue, as its title implies, will also feature a large 28,000-square-foot casino and sportsbook area. Local players can expect to find a rich selection of over 500 slots, as well as 14 gaming tables.

In terms of dining, Caesars’ new property will feature a bar called Wishbones, named after a beloved, now closed, event district in the city. The property will also be home to The Brew Brothers, an award-winning restaurant, popular for its fantastic beer and gourmet food. Lastly, visitors will also be able to visit a Marriot Fairfield Inn and Townplace Suites, which will be built next to the casino and will provide traveling players with a place to stay the night.

Caesars hopes to open Harrah’s Columbus, NE Racing & Casino in the first half of 2024.

Caesars Cannot Wait to Welcome Nebraskans

The operator is excited about the property’s upcoming launch. According to Joe Morris, the company’s senior vice president of racing, horse racing is an integral part of the Cornhusker State. Caesars will support locals’ passion for the sport by launching an “all-new, one-mile racetrack for the community to enjoy.”

During a recent event at the Elks Country Club, Caesars not only presented renderings of the casino but also saw executives talk about the company’s vision. According to Todd Connelly, Caesars Entertainment’s regional president, the construction of the new property represents a major milestone for the operator.

Connelly thanked all of Caesars’ partners and local community members who attended the event and said that he is looking forward to welcoming locals to Harrah’s Columbus, NE Racing & Casino.

During the event, the Harrah’s Columbus, NE Racing & Casino team also donated $5,000 to the new Columbus FIeldhouse as a sign of goodwill.

Nebraskans Will Get to Play Earlier than They Think

Although the new property is set to open in early 2024, locals will get to play with Caesars sooner as the company will open a temporary casino at AG Park. This property is scheduled to open in late spring this year and will feature 200+ slots and will be home to an expansive simulcast offering for horse racing.

Caesars noted that the temporary location will be part of its Caesars Rewards loyalty program, allowing loyal customers to collect points and redeem various prizes.

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