Casino bill advances with ‘de facto’ moratorium on new ‘racinos’

By: Paul Hammel, Nebraska Examiner – March 8, 2022

Nebraska gambling enthusiasts would have to make do with only six casinos at existing horse racing tracks, at least initially, under a bill advanced Tuesday to debate by the full Legislature.

Legislative Bill 876 was advanced by the Legislature’s General Affairs Committee on a 7-0 vote, with one member not voting, after weeks of wrangling over several issues, including how many casinos to allow, given voter approval of expanded gambling in November.

Among the issues: Should there be restrictions on new casinos being within 50 miles, or 150 miles, of an existing racetrack, and should there be a moratorium on new “racinos” (a combination racetrack and casino)? Or should several new casinos be allowed?

‘Middle ground’

For now, legislators struck a “middle ground,” according to State Sen. Tom Briese of Albion, who chairs the General Affairs Committee.

Proponents of locating new racinos in Bellevue, Norfolk, North Platte, Gering and Ogallala would be required to do an extensive study to answer several questions, including whether new locations would help or hurt the existing casinos and whether they would help or hurt the horse racing industry.

“We have left the door open to the (new) proposals that early proposals would have shut down,” Briese said.

Free enterprise

Omaha Sen. Justin Wayne was “present but not voting” on advancement of the racino bill.

He said he supported allowing free enterprise to dictate how many racinos should be established in the state. Wayne added that he would not fight the bill during floor debate.

North Platte Sen. Mike Jacobson, who was just appointed to the Legislature two weeks ago, questioned whether the western two-thirds of the state was being “shut out” for casinos. 

Briese said it would be up to the State Racing Commission to decide whether new racinos should be added. Under LB 876, the commission would have to conduct a “statewide market analysis” on horse racing and complete its work “as soon as practicable” but not later than Jan. 1, 2025.

‘De facto moratorium’

Briese called that a “de facto moratorium” on new racinos because it would take some time — he wouldn’t predict how long — before the commission and an applicant for a new racino could complete the required studies.

The Nebraska Chamber of Commerce had called for no limit on the number of racinos allowed. State horse racing officials, meanwhile, had recommended that casinos be allowed only existing racetracks in Omaha, Lincoln, Columbus, Grand Island, South Sioux City and Hastings.