Nebraska’s three casinos have surpassed expectations and brought in $89 million in gross gaming revenue in their first full year of operation. The casinos, which opened in January 2023, have also contributed $17.8 million in taxes to the state and local governments.
A Successful Year for Nebraska Gaming
The Nebraska Racing and Gaming Commission (NRGC) released its annual report on the state’s charitable gaming industry, which includes the three casinos that operate under the Nebraska Gaming Initiative. The initiative, approved by voters in November 2020, allows casino gambling at licensed horse racing tracks.
The three casinos are WarHorse Gaming Lincoln at Lincoln Race Course, Grand Island Casino & Resort at Fonner Park, and Columbus Casino at Platte County Ag Society Park. The casinos are operated by different entities, but all have a partnership with the Winnebago Tribe of Nebraska.
According to the NRGC report, the three casinos had a combined gross gaming revenue of $89,054,939 in 2023, exceeding the initial projections of $65 million. The casinos also paid $17,810,988 in taxes, which are distributed among the state, the counties, the cities, and the horse racing industry.
The NRGC report also shows that the casinos have created 1,234 jobs and generated $39.6 million in wages and benefits for their employees. The casinos have also invested $143.4 million in capital expenditures, including construction, equipment, and renovation costs.
A Positive Impact on the State and Local Economies
The casino operators and the NRGC have expressed satisfaction with the first year results and the positive impact of the casinos on the state and local economies.
Lance Morgan, the CEO of Ho-Chunk Inc., the economic development arm of the Winnebago Tribe, said that the casinos have been a “game-changer” for the tribe and the state.
“We are proud of what we have accomplished in the first year of operation. We have created hundreds of jobs, supported the horse racing industry, and generated millions of dollars in tax revenue for the state and local governments. We have also provided a quality entertainment option for Nebraskans and visitors,” Morgan said.
Tom Sage, the executive director of the NRGC, said that the casinos have been a “welcome addition” to the state’s charitable gaming industry, which also includes bingo, lottery, raffle, and pickle card games.
“The casinos have been operating in a safe and responsible manner, complying with all the rules and regulations of the commission. They have also been good partners with the horse racing tracks, the local communities, and the state. We look forward to working with them in the future and seeing them grow and prosper,” Sage said.
A Competitive Edge over Iowa Casinos
The casinos have also given Nebraska a competitive edge over its neighboring state, Iowa, which has 19 casinos along its border. According to the Iowa Racing and Gaming Commission, Iowa casinos saw a 9.4% decline in gross gaming revenue in 2023, compared to 2022.
The NRGC report attributes the decline to the opening of the Nebraska casinos, which have attracted customers who used to cross the border to gamble in Iowa. The report estimates that the Nebraska casinos have recaptured about $36 million in gaming revenue from Iowa in 2023.
The report also notes that the Nebraska casinos have a lower tax rate than the Iowa casinos, which gives them an advantage in terms of profitability and reinvestment. The Nebraska casinos pay a 20% tax on their gross gaming revenue, while the Iowa casinos pay an effective tax rate of 24% to 36%, depending on their location and size.
A Potential for Further Expansion and Innovation
The NRGC report also indicates that the Nebraska casinos have a potential for further expansion and innovation in the coming years. The report states that the casinos have plans to add more slot machines, table games, and amenities to their facilities, as well as to build permanent structures to replace their temporary ones.
The report also mentions that the casinos have expressed interest in offering sports betting, which is currently not allowed under the Nebraska Gaming Initiative. The report suggests that the NRGC and the state legislature could consider amending the initiative to allow sports betting at the casinos, as well as online and mobile platforms.
The report concludes that the Nebraska casinos have had a successful first year of operation and have established themselves as a viable and valuable part of the state’s charitable gaming industry. The report also anticipates that the casinos will continue to grow and evolve in the future, providing more benefits and opportunities for the state and its residents.
