Legalization of casino gambling proposed

The General Affairs Committee heard testimony Feb. 10 on a measure that would authorize local-option casino gaming in Nebraska.

LR416CA, introduced by Wilber Sen. Russ Karpisek, would place a proposed amendment to the Nebraska Constitution on the November 2014 general election ballot authorizing local-option casino gaming.

If approved by voters, the amendment would allow a local governing body to place a measure on a local ballot to authorize casino gaming within its jurisdiction. After regulatory expenses, revenue would be allocated according to the following percentages:
• 50 percent to reduce property taxes;
• 25 percent to elementary and secondary education;
• 12 percent to the Nebraska Game and Parks Commission;
• 12 percent to the state Department of Natural Resources for water funding; and
• 1 percent to the Compulsive Gamblers Assistance Fund.

Karpisek said the state is losing revenue to neighboring states that could be used to provide property tax relief and education funding in Nebraska.

“Here is an idea to fix some of these problems or at least help,” he said, adding that 70 percent of Nebraska’s population already lives within an hour’s drive of a casino.

David Nicholson, a retired investigator with the Nebraska State Patrol, testified in support of the measure, saying his research indicates that Nebraska gamblers cross the border to other states to visit casinos.

“In the two-year study, 38 percent of the vehicles at Council Bluffs [casino] were Nebraska vehicles,” he said.

Pat Loontjer of Gambling with the Good Life opposed the bill. She said research shows that casino gaming leads to increases in pathological gambling, alcohol and drug use, incidents of domestic violence and many other societal ills.

“This is not the quality of life that we need in Nebraska,” Loontjer said.

Loretta Fairchild, a retired economics professor, agreed.

“Casinos are a bridge to nowhere,” Fairchild said, “not the promised land of low taxes forever that the proponents are promising.”

The committee took no immediate action on the proposal.