A new report by the Nebraska Racing and Gaming Commission has indicated that the six racing licenses in Nebraska have “more than sufficient capacity” to potentially triple or quadruple racing in the state.
Concluding that “the data [does] not support the addition of more racing licenses,” the report’s findings are significant as they are expected to affect the future licensing of new tracks and associated casinos in Nebraska.
In 2020, Nebraska voters approved a ballot initiative linking casino development with racing licenses, thereby requiring new casino developers, apart from the six license holders, to get state approval for a racetrack. According to the report, the six tracks had 53 race days in 2022, with Fonner Park in Grand Island offering 42.
The study also concluded that while a proposed racetrack casino in Bellevue could increase the state’s gambling revenue, it would likely reduce the income of existing racetrack casinos in Nebraska, particularly affecting WarHorse’s casino under construction in Omaha.
Prepared by The Innovation Group of New Orleans, the report has not been thoroughly reviewed by the Nebraska Racing and Gaming Commission, its chairman Denny Lee told NCN.
The potential effect of the Bellevue proposal has sparked differing opinions. Lance Morgan, CEO of Ho-Chunk Inc., the parent company of WarHorse, told the Omaha World-Herald, “this study kills Bellevue,” pointing out the adverse effect on existing casinos as a reason against licensing Bellevue.
On the other hand, John Hassett, the applicant for the Bellevue license, argued that the commission should approve new licenses if they do not have a negative effect on the state’s overall market, adding, “I wonder, too, how much the racing and gaming commission should be picking the winners and losers.” City leaders in Bellevue expressed confidence this week about the prospect of a new casino facility.
The report also examined the proposed transfer of the Hastings Exposition and Racing license to Ogallala for a new casino development. This move, having received conditional approval pending the study, would not affect the revenue of the existing licenses and is expected to add $18 million in gambling revenue to the state.
Morgan expressed concerns that adding licenses would be unfair to existing license holders who have invested significantly in the industry. He emphasized the need for a strong market in Omaha to compete with international corporations running casinos in Council Bluffs. “The existing tracks are the ones that struggled and survived and put up the money, time, and effort to create the industry,” he said.
Morgan explained that the allocation of a new license in Omaha would dilute the market, saying, “if we bifurcate the market in Omaha, we’re going to come out with a weaker product, and that will hurt us.”
Conversely, Hassett highlighted Bellevue’s potential as a high revenue market and suggested the need for more casinos in Nebraska to compete effectively, explaining, “Iowa has 19 casinos and a population of 3 million. Nebraska has a population of almost 2 million. I don’t think the maximum is six.” He believes there is “probably room for several more [casinos], a couple out west, and I think there’s plenty of room for Bellevue.”
While highlighting the potential market overlap and financial implications of new licenses, the report does not seem to disrupt the Ogallala casino project. Mary Wilson, executive director of Keith County Area Development, expressed enthusiasm for continuing with the Ogallala proposal, emphasizing the positive developments it could bring.
