Key Moments:
- Nebraska casinos have generated tax revenue that now exceeds original forecasts
- For the 2024 tax year, property owners with $200,000 homes saw property tax relief of approximately $250 due to gaming revenue
- Efforts to legalize online sports betting in Nebraska failed earlier this year
Growing Casino Market Strengthens State Finances
Casinos in Nebraska, authorized in 2020, have become a significant source of funds used to reduce homeowners’ property tax obligations. Since opening, five casino properties have outperformed revenue projections, leading state officials to allocate an extra $20 million to the Property Tax Credit Cash Fund. This announcement was made by Governor Jim Pillen, who also signed an executive order to guarantee that all the funds designated for property tax relief are distributed directly to taxpayers.
Distribution of Gaming Revenue
Nebraska assesses a $1 million licensing fee for racetracks offering casino gambling, valid for 20 years. Gross gaming revenue from slot machines, table games, and in-person sports wagering is taxed at a rate of 20%. Of the total taxes collected, 70% is allocated to the Property Tax Credit Cash Fund, 25% supports the host county, and the remaining 5% is split between problem gambling initiatives and the state’s General Fund.
As a result of these allocations during the 2024 tax year, Nebraska homeowners benefited from approximately $250 in property tax savings for residences assessed at $200,000. The recent addition of $20 million to the fund is expected to further increase this rebate in 2025.
Performance of Nebraska Casinos
| Casino | Gross Gaming Revenue (Period Reported) |
|---|---|
| WarHorse Omaha | $47.7 million |
| WarHorse Lincoln | $42.4 million |
| Grand Island Casino Resort | $27.7 million |
| Harrah’s Columbus NE Racing & Casino | $13.8 million |
| Lake Mac Casino Resort | $422,000 (first 12 days) |
Collectively, tax contributions from all five casinos through August 2025 have surpassed $33 million. WarHorse Gaming, LLC, together with the Nebraska Horsemen’s Benevolent and Protective Association, is set to commence construction of WarHorse South Sioux City in the spring of 2026.
In-Person Sports Betting Only, Online Expansion Efforts Stalled
Currently, only in-person sports wagers are permitted at Nebraska racetrack casinos, which has limited the market compared to jurisdictions with both retail and online options. In the most recent legislative session, two bills aimed at expanding online gambling failed to advance. One proposed a new statewide referendum, while another attempted to authorize online betting based on language from the 2020 referendum. Neither measure succeeded due to political disagreements. State Sen. Brad von Gillern (R-Elkhorn) commented: “many men in their 20s do not have the wisdom to abstain from things that are harmful to themselves.”
- Author
Daniel Williams
