New Nebraska Casino Proposed, But Gaming Expansion Under Threat

Nebraska proposes new casinos, but gaming expansion at risk

The list of operators hoping to secure a future presence in Nebraska’s casino market is growing.

Representatives from hopeful KRG Investment Group presented their proposal for a new horse racing facility to the Nebraska Racing and Gaming Commission (NRGC) on Friday. The project would include building a casino-hotel in the southeastern city of Fremont.

A spokesperson for KRG told the Lincoln Daily Star the company is in the "early stages of due diligence discussions" with city officials and they appear open to the idea. Officials have identified four potential sites for the project, the spokesman said.

Nebraska voters legalized casino gambling on the 2020 ballot. That's when they agreed to amend the state constitution to allow commercial casinos at the state's six licensed racetracks.

The new law also opens the door to the development of new casinos. But any operator wanting to tap into the potentially lucrative casino market would also have to offer live horse racing, a potentially less profitable option. This means they must build or buy a track and obtain a racing license from the state.

Licensed racetracks that have been authorized to build casinos include Legacy Downs in Lincoln, Fonner Park in Grand Island, Horsemen's Park in Omaha, Atokad in South Sioux City, FairPlay Park in Hastings and the Columbian Exposition and Racetrack in Columbus . Four of the venues have opened temporary venues while their main casinos are under construction.

The Fremont project is the seventh new racing and gaming facility proposal in the state. Others are scheduled to go to Bellevue, Norfolk, York, North Platte, Gerin and Kimball.

Report a Threat

An independent report submitted to the state Racing and Gaming Commission earlier this month could block these new projects and halt casino expansion in the state.

The market study concluded that "with the six existing racing licenses in the state, racing in Nebraska is large enough to triple or quadruple."

"The data does not support adding more racing licenses," he added.

The report was commissioned by the NRGC at the request of state lawmakers, who want the agency to analyze the state's horse racing and casino markets and their socioeconomic impacts every five years.

The NRGC is required by law to consider the potential socioeconomic impacts of new license applications. It must reject actions that could adversely affect the health of existing markets.

The agency plans to discuss the report at a meeting on Friday.