Fund to support horse racing considered

The state would create a fund to support live horse racing under a bill heard by the General Affairs Committee Feb. 7.

LB681, introduced by Wilber Sen. Russ Karpisek, would create the Live Horseracing Endowment Fund for purses for live thoroughbred race meets at Nebraska racetracks. Up to 5 percent of fund proceeds could be used by the Nebraska State Racing Commission for administrative purposes.

The keno tax, which is 2 percent of keno proceeds, currently is credited to the Charitable Gaming Operations Fund. Under LB681, the first $4 million of annual keno tax revenues would be deposited in the Charitable Gaming Operations Fund, and the following $2 million would be directed to the Live Horsracing Endowment Fund. Revenues exceeding $6 million would be split equally between the two funds.

Karpisek said keno revenues currently amount to approximately $4 million.

He also introduced a bill to increase revenues to facilitate deposits in the Live Horseracing Endowment Fund. LB490 would shorten the time between keno games from a minimum of 5 minutes to a minimum of 1 minute, which localities could revise upward. The bill also would permit keno players to access keno tickets from a machine. These changes are expected to produce $1.5 million in annual revenues.

Karpisek said the assistance authorized in LB681 and supported by LB490 would fund horse racing purses and racetrack construction.

Jerry Fudge, president of the Nebraska Horsemen’s Benevolent and Protective Association, testified in support of LB681. He said Nebraska horse races have some of the lowest purses in the nation, which makes it difficult to attract quality horses.

“We desperately need new funding to be able to continue to employ over 2,000 people across the state,” Fudge said.

Tom Sage, executive director of the Nebraska Racing Commission, testified in support of both bills, saying anything that helps the horse racing industry leads to improved economic activity for the state. Sage said horse racing wagers in the state have declined from $103 million in 2008 to $86 million in 2010.

Pat Loontjer, executive director of Gambling with the Good Life, testified in opposition to LB490 and LB681. New forms of assistance for a particular industry like horse racing are unwise in budget-cutting times, she said, particularly when the horse racing industry already receives preferential tax treatment.

The committee took no immediate action on either bill.