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Casinos for you
Voters in Nebraska Lift Long Time Ban on Casino Gambling
By Jeff Osienya Nov 08, 2020 LegalityAfter decades of opposition by lawmakers and state residents themselves, three casino regulation initiatives were passed by over 64% of Nebraskans in Tuesday’s ballot. It may however take over one year before residents can officially enjoy casino gaming.On Tuesday night, in one of the biggest moments of American history, voters in the State of Nebraska finally cast their ballots in favor of lifting the long-time ban on casino gambling in the state. Three questions; 429, 430, and 431 were all passed with approval from more than 64% of voters.
This is such great news for residents of the Cornhusker State as the state has had an infamous reputation of outlawing casino-style gambling games including slot machines and table games. The last time efforts were made to try and get casino legalization questions to the ballot was back in 2016 without success, and when the casino ballot actually made it to the ballot over a decade earlier in 2004, voters shot the measures down.
All the while, practically every other state that surrounds it has had a thriving casino industry that creates employment along with generating more tax revenue for state coffers. Moreover, after the repeal of the PASPA in 2018, some states like Colorado and Iowa recently ventured into online and mobile sports betting on top of casino gambling, whereas Missouri and Kansas are already mulling over how to ease into a regulated sports betting industry.
A Closer Look at Nebraska’s Ballot Initiatives
The first initiative on the ballot, question 429 shed light on legalizing slot machines and table games such as blackjack among other casino-style games to licensed race tracks in Nebraska. The second initiative, question 430 mainly touched on the establishment of a regulatory body in the state, the Nebraska Gaming Commission. The oversight body will be tasked with issuing licenses and supervision the legalized forms of gaming in the state which will include the drawing of codes of conduct and a framework for operation.
As for question 431, the third and final initiative relating to the regulation of casino gaming in the Cornhusker state, residents were being asked to allow taxation for the activity. This initiative introduces an annual tax rate of 20% on the gross gaming revenue collected from the games of chance that are offered in the licensed racetrack facilities in Nebraska.
Based on question 431, 75% of the tax collected from regulated gambling will be going to the Property Tax Credit Cash Fund and the Compulsive Gamblers Assistance Fund at a ratio of 3 to 1. The latter would however share its portion of the tax revenue with the state’s General Fund. Question 431 on the ballot further specified that the remaining 25% of the tax revenue collected from gaming would be allocated to the county, city, or village where the licensed racetrack gambling facility is located in Nebraska.
Time for Nebraska Dollars to Stay in Nebraska
Earlier in the year, Lance Morgan, the Chief Executive Officer of Ho Chunk Inc. – the body in charge of economic development for the Winnebago Tribe, spoke of a survey that indicated that over $8.8 billion worth of Nebraska dollars had crossed the river to neighboring states since gaming was legalized. Morgan also indicated that the state had the potential to rack up between 60 to $80 million in tax revenue and create over 4,600 employment opportunities for Lincoln and Omaha alone should casino gaming be okayed in the Cornhusker State.
Now that voters have spoken, what’s left is for lawmakers and state agencies to spearhead the formation of a framework that will make this new lucrative industry work for the state. In an interview with The Independent on Wednesday, Chris Kotulak the Chief Executive Officer of the Fonner Park – one of the six racetracks in the state voiced his excitement for the industry’s potential after The Associated Press called the win for all the three gambling initiatives by saying;
Quote"The majority has spoken in Nebraska. I want to thank the Ho-Chunk tribe and the Nebraska Horsemen’s Benevolent and Protective Association for leading the charge in these three casino initiatives.
I am especially thrilled for the Nebraska thoroughbred racing industry because this will result in saving their industry and become a significant boost for Nebraska agriculture. The breeding of thoroughbred racehorses and the demand for farmers to produce product for the racehorses will generate a revitalized ag economy in the state.
The casino alone will call for dealers — people to be at the table games — slot attendants and hosts. Then, there are the food and beverage employees that we would need. There is the hospitality and house cleaning, the surveillance and security all within the casino itself. Then, should there be a hotel that would be built, then we would need all of the staffing required for that."
Mr. Kotulak however said that it will take time for everything to be set up in terms of regulation, adding that residents may have to wait over a year before casino gaming officially starts in Nebraska.
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