Changes to casino, racetrack regulation clear first round

Lawmakers advanced a bill from general file Feb. 5 that would make a number of changes to casino and racetrack enclosure regulation in Nebraska.

LB357 was introduced by the General Affairs Committee at the request of the State Racing and Gaming Commission. Bellevue Sen. Rick Holdcroft, chairperson of the committee, said the bill would allow the commission to better manage the record growth of casino gaming and horse racing in Nebraska over the last four years.

“In 2024, the state of Nebraska received $29.1 million in gaming tax [revenue], with $20.4 million going toward property tax relief,” Holdcroft said.

Among other changes, the bill would:
• create a new Racetrack Gaming Fund and consolidate two existing commission cash funds into it;
• reduce the required number of annual commission meetings from eight to six;
• update commission background check and fingerprint procedures;
• reduce the term for individual horse racing licenses from five years to three;
• clarify licensing fee structures and requirements; and
• provide for an application process for a $10,000 three-year racetrack enclosure license.

Holdcroft said the commission currently licenses race days in Nebraska but has no authority under state law to license racetrack enclosures.

The bill also would change the payment process for an existing one-time authorized gaming operator license, which has a $5 million fee. Under LB357, the license fee still must be paid over a five-year period — with $1 million due at the time an application is issued — but each additional $1 million payment would be required annually until the fee is paid in full.

Following adoption of a technical amendment, senators voted 39-0 to advance the bill to select file.