Nebraska voters are determining the fate of three ballot initiatives that would signify the first step towards legalizing casino gambling in the state.

The three initiatives – 429, 430 and 431 – would work in tandem to allow, regulate and tax gambling at licensed Nebraska racetracks.

Nebraska currently prohibits casino gambling, but it allows a state lottery, regulated raffles and bingo, and horse racing. Legally dubious video games that involve an element of skill – taxed as “mechanical amusement devices” – have also proliferated in recent years.

Initiative 429 would amend the Nebraska Constitution to exempt licensed racetracks, such as Horsemen’s Park in Omaha, from the current prohibition on casino gambling. Initiatives 430 and 431 would establish regulations and tax guidelines for the new industry. Without the passage of 429, the other two initiatives would be nullified.

The initiative campaign, led by Keep the Money in Nebraska, collected approximately 470,000 signatures from voters. Nebraska Secretary of State Bob Evnen attempted to block the measures, claiming that the trio of initiatives violated the single-subject rule. Ho Chunk Inc., an economic development corporation owned by Nebraska’s Winnebago Tribe, sued the state and took the case to the Nebraska Supreme Court in early September. Within a week, the court overturned Evnen’s decision and ruled that the measures should appear on the ballot.

Proponents of the measures say that allowing gambling would increase economic activity in the state. According to Lance Morgan, CEO of Ho Chunk Inc., an economic survey found that nearly $8.9 billion has gone from the Omaha area to Council Bluffs since the Iowa casinos opened.

“You’re talking about a number that is so large it’s hard to believe,” Morgan said. “But it adds up over a period of time.”

If the measures are adopted, a 20% annual tax would be imposed on the gross revenue of licensed gambling operators. Of that tax revenue, 25% would be given to the counties in which racetracks are located, 70% would be allocated to the Property Tax Assistance Fund and 2.5% each would go to both the Compulsive Gamblers Assistance Fund and the state’s General Fund. 

Gambling with the Good Life, the group leading the opposition to the initiatives, urges voters not to “gamble away the good life” and warns that allowing gambling in any form goes against moral values and puts many at risk for gambling addiction.

“The Ho Chunks have put up millions of dollars to change the Constitution and allow unlimited casinos all over Nebraska,” Gambling with the Good Life Executive Director Pat Loonjer said at an Oct. 5 news conference. “This permits all forms of casino gambling – including sports betting and internet gambling to addict our children and grandchildren.”

The initiatives would allow gambling at licensed tracks for horse racing, of which Nebraska currently has six. In addition to Horsemen’s Park, tracks are located in Grand Island, Lincoln, Columbus, Hastings and South Sioux City, according to the Nebraska State Racing Commission.

Opponents say the requirement to become a licensed racetrack is conducting only one race per year – a low bar for new facilities – and they argue allowing casino gambling anywhere in the state would pave the way for Native American tribal casinos to open.

Nebraska Gov. Pete Ricketts has been among the high-profile opponents of the initiatives.

“Gambling addiction and gambling is bad for our state,” Ricketts said at the news conference. “We already fight gambling addiction here in our state. This will make it so much worse. It will put it in our communities, it will put it all across our state.”

Supporters of the initiatives argue those social ills are already in Nebraska. In Omaha, gamblers are a short drive from three casinos in Council Bluffs, with legalized sports betting available by app anywhere in Iowa. In addition, a casino opened in Carter Lake, which abuts north Omaha.

“If there are negatives from a social standpoint, we already have them,” Morgan said. “So we might as well have the jobs and the economic activity and the taxes.”