State racing and gaming commission decides market study is incomplete, needs additional info

LINCOLN, Neb. (Nebraska Examiner) -The state agency that governs whether Nebraska needs more racetrack/casinos decided Friday that it needs more information before it can make that decision.

The move delivered a blow to several cities across the state — a list that now includes Fremont — that are seeking to join the state’s six existing racetracks in offering casino gaming in their communities.

The decision by the State Racing and Gaming Commission also served to delay consideration of moving a racing license from a quarterhorse track in Hastings to a proposed new track/casino in Ogallala, which would be the state’s first casino west of Grand Island.

Currently, only the existing, licensed racetracks in Lincoln, Grand Island, Omaha, Columbus, South Sioux City and Hastings are allowed to have casinos, under the 2020 vote by Nebraskans to allow casinos.

But the Nebraska Legislature passed a bill that allows additional locations to be considered once the Racing and Gaming Commission completes a market/economic study to determine whether additional “racinos” (a racetrack with a casino) could be allowed in the state without harming the existing operations.

A $48,000 study

On Friday, commission members voiced doubts that a $48,000 market study, completed last month by New Orleans-based gaming consultants The Innovation Group, met the requirements of the study as required by the Legislature.

That led to 7-0 passage of a motion to require a committee to review the legislative requirements and then decide whether the current study should be supplemented, or if a brand-new study should be done.

“I’m not sure there’s enough data (in the current study) to allow the commission to make a good judgment on any expansion of current racetracks beyond our current facilities,” said Dennis Lee, an Omaha attorney and the chairman of the seven-member commission.

Representatives of Warhorse Gaming, the Lincoln racino, and the Nebraska Horsemen’s Benevolent and Protective Association, called for the Innovation Group study to be “thrown out” and a request for proposal be conducted to contract for a new study.

Tom Zitt with The Innovation Group told the commission that because Nebraska has such limited racing days, it was not possible to completely access the impact of additional racinos on the existing racetrack/casinos.

But racetrack officials faulted The Innovation Group for never calling or visiting the state’s racetracks to seek data they needed for the study.

Commissioner Jeff Galyen, however, said that his motion left it open for a committee to determine whether a new study or is needed, or just an addition to the existing study.

Zitt said his firm would be willing to expand its report if it could get information about the expected increases in racing days and purses, data that would help the firm project the impact on racing.

Lake Mac Casino tabled

Brian Jorde, an Omaha attorney representing the proposed “Lake Mac Casino Resort and Racetrack” in Ogallala, asked the Commission to approve the move of the racing license to Ogallala from Hastings.

He argued that the state statute directing the market study required the “initial issuance” of such a report, which has already happened. Jorde said the move could be approved now.

The attorney added that any market study will show that moving the racetrack 200 miles west to Ogallala is a benefit, and not a detriment, to the existing racetracks/casinos in the state.

Galyen, who is also an attorney, disagreed, saying the commission must wait for the market study to be updated or redone before it can approve a move or a new racino license.

The commission then tabled the request about the Ogallala move.

Fremont also wants a casino

Representatives of a group seeking a racino in Fremont also addressed the Racing and Gaming Commission on Friday. Fremont now joins Bellevue, Norfolk, North Platte, Kimball and York in expressing a desire to open a casino.

David Bracht, an Omaha attorney for the Fremont group, said that the city is well positioned to host a racino and that it would have a positive impact on the community.

The commission took no action after the Fremont presentation, determining that it could not rule on any new racinos until the market study is updated or redone.

Executive director to retire

A request by Tom Sage, the executive director of the State Racing and Gaming Commission, to retire on March 12 was approved at Friday’s meeting.

Sage, who has been with the commission for two decades, has been on a leave of absence for health reasons in recent days.

His leave began after questions arose about a recent $30,000 purchase of semi-automatic rifles for casino security. There were also concerns about whether a legislatively required market study was adequately completed.

Before approving Sage’s retirement, commissioners and an official with the racing industry praised the hard work Sage has done to transform the agency from only governing horse racing, to also regulating casinos.

The commission has ramped up from two full-time employees to 25 since the state’s first casino opened in 2022.

Nebraska Examiner is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Nebraska Examiner maintains editorial independence. Contact Editor Cate Folsom for questions: info@nebraskaexaminer.com. Follow Nebraska Examiner on Facebook and Twitter.

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