Local group works to place casino gambling on the November ballot

OMAHA, Neb. (FOX 42 KPTM) — Should slot machines and other casino games be legal in Nebraska? That’s the question voters could soon decide on if enough signatures are collected by the group Keep the Money in Nebraska. The political committee is collecting signatures on three separate petitions to place gambling expansion measures on the November ballot.

Mike Newlin, CEO of Omaha Exposition and Racing and General Manager of Horsemen’s Park, said right now many people who choose to gamble are spending their money across the river in Iowa.

“Eight point eight billion dollars has been wagered by Nebraska residents at the Iowa casinos over the past 25 years. That’s a lot of money leaving the state,”Newlin said. “It’s average the approximately half a billion dollars is wagered by Nebraska residence out of state.”

The first petition would place an amendment to the state constitution on the November ballot. That measure would change state law to allow for the licensing, authorization, taxation and regulation of games of chance to be held at a licensed casino.

Newlin said the proposed casinos would only be established within existing horse race track facilities in Omaha, Lincoln, Columbus, Hastings, Grand Island and South Sioux City.

The second petitionwould enact a state statute to establish the Nebraska Gaming Commission to regulate casinos. According to the petition text the gaming commission would include five members from the State Racing Commission, as well as two individuals appointed by the Governor with all members serving a five year term.

The third petition being circulated would enact a state statute to establish a tax on gross gambling revenue.

“If we get casino gambling passed, we would like to institute a 20 percent tax with 70 percent of that tax being earmarked for the property tax relief fund,” Newlin said.

Newlin estimates the proposed gambling tax could bring in $65-85 million in revenue annually. If approved the statute would place a 20 percent tax on gambling revenue. According to the petition text, 75 percent of that revenue would go to the state, with 2.5 percent designated to the Compulsive Gamblers Assistance Fund; 2.5 percent designated to go towards the General Fund; and the remaining 70 percent to go towards the Property Tax Credit Cash Fund. Twenty-five percent of the revenue from the gambling tax would go towards the county in which the race track is located.

Pat Loontjer is the Executive Director of the anti-gambling group Don’t Gamble with the Good Life. Loontjer said changing the state constitution could potentially open the door for other types of casinos to be established in the future.

“National statistics will show that for every one dollar a state gains in gambling revenue, it costs them three dollars in social costs,” Loontjer said. “We consider Nebraska the good life state. We’ve done very well without having casinos.”

Loontjer said bringing in additional gambling options could do more harm than good for families struggling during the pandemic.

“It would bring full blown casinos to Nebraska. Ninety percent of a casinos revenue is slot machines, that is the most addictive product. It’s called the crack cocaine of gambling, that’s what a slot machine is,” Loontjer said. "[It’s] very addictive and in this day and age when people are struggling with the virus, and with the economy, the last thing we need is some other form that’s going to take money out of the state or out of the pockets of the families.”

July 2 is the deadline for all petitions to be submitted to the Attorney General's office. Newlin did not say how many signatures are still needed, but said he is confident all three initiatives will make the final cut.

Keep the Money in Nebraska will need approximately 130,000 signatures to allow the constitutional change to appear on the November ballot. An additional 85,000 signatures will also be needed for both state statutes.

Newlin said if voters are in favor of expanding gambling options at the race track, it will be at least a year before those casinos are operational.