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Nebraska Governor Okays Casino Regulations, License Applications to Start in June
By Jeff Osienya May 19, 2022 LegalityAfter one and a half years of waiting, Nebraska residents have reason to celebrate as Governor Rickets rubberstamped the state’s casino regulations. A June meeting is expected to finalize licensing fees so that operators can start sending in applications.The Cornhusker State, Nebraska, has jumped one final hurdle to seeing the launch of casino gambling within its borders. On Wednesday, May 18th, Governor Pete Ricketts signed off on the state’s casino gaming regulations, taking Nebraska a step closer to the debut of an expanded gambling market.
Nebraska’s newly rubberstamped regulations are set to come into effect on Monday, May 23rd, 18 months after voters approved expanded gambling at the state’s horse racing tracks. However, it’s not all systems go just yet with the Nebraska Racing and Gaming Commission needing to sort out some issues before the various operators can begin submitting licensing applications.
A Spanner in the Works
The primary issue causing the delay is an ensuing argument about licensing fees. There is still no consensus on how much applicants will need to pay to the Nebraska Racing and Gaming Commission. However, during the creation of legislative Bill 706, which would eventually see Nebraska expand its gambling options, potential figures were brought up.
Under the proposals, there were calls to change the licensing fees from $1 million to a whopping $5 million. Additionally, the casino operators would also be required to pay an annual fee of $50,000 to the Racing and Gaming Commission. As you can imagine, the issue of money, particularly involving such large sums, is usually quite sensitive, especially when it comes to gambling expansion matters. As such, the Nebraska Gaming and Racing Commission is taking its time to come up with a final figure.
The Racing Commission is scheduled to have its next meeting on June 2nd, where the License applications are likely to start upon the final determination of a licensing fee. The licensing process is scheduled to take between 30 to 60 days, according to the Racing Commission’s director Mr. Tom Sage.
Major Casino Industry Players are Already Planning Their Moves
The casino gambling market has always been a competitive one. So, it’s no surprise that the leading industry players are already lining up to take on the eager Nebraska market. For instance, the Nebraska Horsemen’s Benevolent and Protective Association has partnered with Ho-Chunk Inc to develop casinos across the state. Speaking of this coming setup, Lance Morgan, the President and Chief Executive Officer of Ho-Chun,k shared a few thoughts with a local newsroom, saying:
Quote“Adding casino gambling to this whole initiative, what it will do is authorize the tracks to get a whole lot of money, and that will not only create jobs on the gaming side of the equation but will also create economic activity in rural Nebraska.”
Ho-Chunk Inc is already on a full-blown mission to set up a facility in Lincoln. According to projections, the facility is estimated to be up and running in just under one year. Meanwhile, arrangements are already in place for an interim facility that should be open in a couple of months. Furthermore, the company not only plans to focus its activities in Lincoln, but there are also proposals to go into South Sioux City and Omaha.
That being said, Ho-Chunk isn’t the only stakeholder we are likely to see tapping into Nebraska’s casino market. For example, the national gaming juggernaut Ceasars has partnered with Columbus Exposition and Horse Racing to build and operate a Harrah’s Casino and Racetrack in Columbus, Nebraska. The estimated $75 million establishment will likely be operational by the end of 2022 if things stay on track. Likewise, there is also a proposal by the Chickasaw Tribal Nation, which is planning to develop a new horse track and casino in Hastings, Nebraska. The Chickasaw Nation had initially planned to have the facility at Lochland Country Club, but the City Council shut down those plans. As a result, it is still unclear where the new facility will be.
Fonner Park and Lincoln Racecourse are also lining up plans to open temporary casino gaming zones as the construction of their much more extensive facilities continues. For instance, the temporary facility at Lincoln Racecourse will be set up in the existing simulcast building and will have upwards of 300 slot machines. On the other hand, the fully-fledged casino facility is a $220 million project that’s expected to host 1,200 gaming stations alongside a hotel with 196 rooms, restaurants, an events space, and a host of other entertainment and recreational facilities.
Meanwhile, other proposed casino sites are on hold by various stakeholders owing to the uncertainty over when exactly will the licensing issue be sorted.
Another Hurdle for New Racetracks
While the issue with the licensing fees is the most critical matter of contention before we are all systems go in Nebraska, there is another hurdle on the horizon. The bill, which the Nebraska Governor just signed, calls for the Nebraska Racing and Gaming Commission to complete a study to evaluate the economic and social impact of racetracks and casinos.
But then, given that there’s no specific time frame set for this study, it could be months before Nebraska residents are allowed to try out their new favorite slots at their casinos. Therefore, the development of casinos will initially be restricted to six counties; Omaha, Lincoln, Grand Island, Columbus, South Sioux City, and Hastings. These are the counties that already have existing racetracks.
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