Some casino officials in Iowa have shared their concern that they could lose business to the state of Nebraska after residents there gave the green light to commercial gambling.
As explained by Iowa casino officials, they fear that at the time commercial casinos are established in Lincoln and Omaha, Nebraska, they could seriously affect Iowa state’s gaming revenues. Gambling venue owners said they are particularly worried about Council Bluffs, where four casinos currently operate. Sioux City, Sloan and Onawa are the rest of the border towns in Iowa that offer casino gambling.
The addition of commercial casino gambling in Nebraska could turn out a severe blow to Iowa casino venues that have already been suffering due to the negative impact of the coronavirus pandemic.
The president of the Iowa Gaming Association, Wes Ehrecke, confirmed that Iowa casinos are still trying to tackle the negative impact that the Covid-19 crisis had on the market due to the lengthy lockdown period that affected the gambling venues’ performance and profitability. According to him, the legalization of commercial casino gambling in the state of Nebraska will result in an even more serious negative effect on local casino businesses.
Nebraska Voters Approved Three Casino Gambling-Related Constitutional Amendments
Last week, about two-thirds of Nebraska voters voted in favor of three proposed constitutional amendments aimed at making casino gambling legal at the six licensed horse tracks across the state. The approved constitutional amendments were also aimed at making sure the industry would be regulated, and part of the casino gambling revenue will be used as a tax credit for property owners.
The supporters of commercial casino gambling at licensed racetracks across the territory of Nebraska aim at opening casinos as soon as possible and then expand them to larger venues, including hotel and hospitality parts, dining areas and other amenities. The campaigners have shared their hopes to reclaim a significant part of the money that Nebraska residents spend at casinos in Iowa and other states on an annual basis, with the amount being estimated at approximately $500 million.
This was confirmed by the general manager of Horseman’s Park in Omaha and Lincoln Race Course, Michael Newlin. Mr. Newlin shared that, according to him, the newly-allowed casinos will help the state boost its horse racing industry because their profits will end up increasing races’ prizes. He further noted that the local horse racing industry has been suffering a decline for years now and a little help would not be bad for the sector.
Mr. Newlin further projected that the addition of commercial casino gambling at local racetracks would help racing mark growth in three to five years. His Iowa-based proponents, however, are not convinced that new casinos would have a significant impact on horse racing in Nebraska.
