Measure would allow Legislature to authorize casino gaming

The General Affairs Committee heard testimony Jan. 30 on a proposed change to the Nebraska Constitution that would allow the Legislature to authorize and regulate casino gaming in Nebraska.

LR375CA, introduced by Columbus Sen. Paul Schumacher, would place a proposed constitutional amendment on the November 2012 general election ballot that would allow the Legislature to authorize and regulate any game of chance, lottery or gift enterprise.

The amendment would authorize the Legislature to enter into a compact that would allow a bordering state to share its gaming revenue with Nebraska in proportion to its population. In exchange, the Legislature would not authorize casinos in Nebraska to be located within 60 miles of the bordering state.

Three Iowa casinos located near Nebraska’s border earn $428 million annually, Schumacher said, and $321 million of that revenue comes from Nebraskans who travel across the border to play casino games.

The amendment would not authorize slot machines to be located within the state, he said, but would give the Legislature the authority to do so. More importantly, Schumacher said, the change would allow the Legislature to seek another revenue source.

“This is a revenue matter more so than a gaming matter,” he said.

No proponent testimony was provided on the bill.

Al Riskowski, executive director of the Nebraska Family Council, testified in opposition to LR375CA, saying he was concerned about allowing the Legislature to regulate gaming in the state.

“Our largest contention is the fact that it takes the power from the people and puts it in the hands of the majority of the state legislature,” Riskowski said.

The committee took no immediate action on the bill.