Nebraska Casinos Luring Gamblers from Iowa

By Jane Shaw Senior Editor Updated: 12/25/2023

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Nebraska Casinos Luring Gamblers

The Nebraska Racing and Gaming Commission reported that the gross gaming revenue (GGR) for the state’s three temporary casinos totaled over $72 million from July 1 to October this year.

While there are no year-over-year comparisons currently available, the data indicates that these new Nebraska casinos are attracting some gamblers from neighboring Iowa, who had previously spent their money at casinos in Council Bluffs. Lynne McNally, CEO of the Nebraska Horsemen’s Benevolent and Protective Association (NHBPA), said:

We’ve been saying this all the time. The majority of revenue spent in those casinos in Council Bluffs comes from Nebraska residents. It comes directly out of Nebraska’s pocket, and therefore the tax revenue is being accumulated in Iowa.

The GGR for Iowa’s three casinos in Council Bluffs, located across the river from Omaha, dropped 2.8% year-over-year to $460 million in fiscal year 2023 after bringing in $473.2 million in 2022. This decrease is almost certainly down to the influence of Nebraska’s casinos.

Keeping Gambling Revenue in the State

The 2020 referendum allowed six horse racetracks in Nebraska to add casinos. So far, provisional casinos have opened at tracks in Lincoln, Grand Island, and Columbus. A temporary sportsbook is also operating in Omaha.

The NHBPA partnered with the Winnebago Tribe on two casinos – WarHorse Casino Lincoln and a future casino at Horsemen’s Park in Omaha. Caesars Entertainment runs a temporary casino in Columbus while building a permanent Harrah’s casino resort. Elite Casino Resorts is redeveloping Fonner Park into Grand Island Casino Resort.

Nebraska lawmakers and industry leaders are optimistic that these new gaming venues will prevent the state’s gambling dollars from leaving for Iowa. The early revenue numbers suggest that is already occurring to some degree as gamblers explore their new local options.

Details of the 2020 Nebraska Gambling Measure

In November 2020, Nebraska voters approved Initiative 430, which amended state law to allow gambling at licensed horse racetracks. The measure passed with 65% of the vote.

Initiative 430 authorized casinos to be operated by licensed gaming operators within racetrack enclosures. It established the Nebraska Gaming Commission to regulate the industry, including licensing gaming operators, and this regulator functions in a similar manner to regulators in other states with legal gambling.

According to the amendment, anyone under the age of 21 is prohibited from gambling in the state. The petition drive to put Initiative 430 on the ballot was led by the group Keep the Money in Nebraska. Their campaign argued that allowing racetrack casinos would keep gambling revenue in Nebraska rather than letting it flow to neighboring states.

This is something we’ve seen in other states like Georgia, although opponents raised concerns about social problems associated with more gambling accessibility – something the state promised the Gaming Commission would work hard to address.

Initiative 430 was one of three related measures on the 2020 Nebraska ballot concerning gambling regulations and taxes. All three were ultimately approved by voters, and this paved the way for casinos to open at horse racetracks across the state. It’s likely, in coming years, we will continue to see new casinos opening – with new racetracks potentially on the horizon, too.