Nebraska racetrack report could derail new casino project
Nebraska’s horse racing industry is the right size and the data does not support the need for additional horse racing licenses. That's according to a new independent report commissioned by the state Racing and Gaming Commission that could hinder further casino expansion in the state.
Lawmakers asked the commission to study the state's horse racing and casino markets and their socioeconomic impacts, a study that would be repeated every five years. This comes after Nebraska voters passed the state's racetrack gaming bill on the 2020 ballot, legalizing casino gambling.
The vote amended the state constitution to allow commercial casinos at the state's six licensed racetracks. The new law ties the potentially lucrative casino games to the less profitable industry of horse racing. This means that any operator wanting to enter the casino market must first build or purchase a racetrack and obtain a horse racing license from the state.
Protect the Market
According to reports seen by The Lincoln Journal Star, no additional track is needed. Researchers claim that "with the state's six existing racing licenses, Nebraska has enough racing to accommodate three or four times that amount," as quoted by the Star.
The Racing and Gambling Commission is required by law to consider the potential socio-economic impact of license applications. Projects that may adversely affect the health of existing markets must be rejected.
That could be bad news for operators facing Nebraska, which was already unable to apply for permits ahead of the report.
Chief among them may be John Hassett, president of Aksarben Equine, which is backing a project to build a $150 million racetrack in Bellevue, Omaha's Council on Part of the Loves Metropolitan Area.
The Bellevue venue will cannibalize revenue from existing licensees, particularly Omaha's War Horse Casino, the report said. The casino is currently being built at Omaha's Knights Park by Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska.
According to the study, Belleview Casino will generate $60.7 million in revenue, $38.5 million of which will come from other operators. About $27.4 million of that would come from War Horse, the study said.
Is there room for more?
Hassett told the Star he believes a permit should be denied only when a project harms the state's entire market, not just one operator. He also pointed out that neighboring Iowa has 19 casinos and a population of 3 million, while Nebraska has only 6 casinos and a population of 2 million.
I don't think it's six at most. I think there’s probably room for a couple more, some out west, and I think there’s plenty of room in Bellevue as well,” he said.
Ho-Chunk Inc. CEO Lance Morgan disagrees.
“This research is killing Bellevue,” he argued. “…The existing circuits are the ones that have fought and survived and invested money, time and energy into building the industry.”
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Source: www.casino.org
