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Nebraska is considering bring in slot machines to it state horse racing venues under a proposal introduced by General Affairs committee chairman Senator Russ Karpisek.  The proposal was introduced under two pieces of legislation: LR 6CA would grant permission for the seven Thoroughbred racing venues in the Nebraska to operate as many as 3,500 slot machines each.  The second, LB 266, explains how the constitutional amendment would be executed upon receiving voter approval.

The proposal also includes how revenue from slot machines would be divided throughout the state.  The State Highway Trust fund would receive 40 percent of proceeds from slot machines.  Horse racing tracks would receive 14 percent for the purposes of increasing purses and funding horse related programs. 

A healthy 41 percent would be reserved for maintaining slot machines and all associated administrative costs.  The communities that host the racetrack will receive 4 percent of proceeds.  And finally, 1 percent is reserved for compulsive gambling assistance. 

Slot machines, as usual, are expected to bring in a solid stream of revenue.  According to a consultant hired by Horsemen’s Park in Omaha slot machines could generate $221 million each year.  Using this estimate as a guide, state road building programs could expect about $88 million each year and the faltering horse racing industry can anticipate roughly $31 million each year.  

Although $88 million each year sounds helpful, slot machines may not be enough as highway construction in the state is suffering $300 million shortage.   

The horse racing industry makes up a majority of the support for slot machines in Nebraska. 

 

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