Nebraska Racing and Gaming Commission Delays Decision on More Racetrack/Casinos
The Nebraska Racing and Gaming Commission has postponed its decision on whether the state needs more racetrack/casinos. This decision comes as a blow to several cities across Nebraska, including Fremont, that have been eager to join the state’s six existing racetracks in offering casino gaming. The commission also delayed the consideration of moving a racing license from a quarterhorse track in Hastings to a proposed new track/casino in Ogallala, which would be the state’s first casino west of Grand Island.
Executive Director of State Racing and Gaming Commission to Retire amid Controversy
Tom Sage, the executive director of the State Racing and Gaming Commission, has been approved to retire on March 12. This retirement comes after Sage took a leave of absence for health reasons, following concerns about a recent purchase of semi-automatic rifles for casino security and the completion of a required market study. Before approving Sage’s retirement, the commissioners and an official with the racing industry commended his work in transforming the agency from governing horse racing to regulating casinos.
Doubts Raised About Market Study for Additional Racinos in Nebraska
The commission members have expressed doubts about the adequacy of a $48,000 market study conducted by The Innovation Group. This study was intended to determine whether additional racinos could be allowed in Nebraska without harming the existing operations. The commission members questioned whether the study met the requirements set forth by the Legislature. In response to these concerns, a committee will be formed to review the legislative requirements and decide whether the current study should be supplemented or if a new study should be conducted.
Proposed Move of Racing License to Ogallala Put on Hold
The commission’s decision to delay the consideration of moving a racing license from Hastings to Ogallala has put the proposed “Lake Mac Casino Resort and Racetrack” on hold. The attorney representing the proposed racetrack argued that the market study required for the move had already been conducted and that the move could be approved now. However, the commission disagreed and stated that the market study must be updated or redone before any approval can be granted.
Fremont Joins List of Cities Seeking Racinos as Commission Delays Decision
Fremont has joined several other cities, including Bellevue, Norfolk, North Platte, Kimball, and York, in expressing a desire to open a racino. Representatives from the Fremont group addressed the Racing and Gaming Commission, stating that the city is well-positioned to host a racino and that it would have a positive impact on the community. However, the commission has taken no action on any new racinos until the market study is updated or redone.
Analyst comment
1. The news about the Nebraska Racing and Gaming Commission delaying the decision on more racetrack/casinos can be seen as negative. This decision is a blow to several cities across Nebraska that were eager to offer casino gaming, potentially limiting economic opportunities.
As an analyst, it is likely that the market for racetrack/casinos in Nebraska will experience a period of uncertainty and stagnation until the commission makes a decision. This delay may also lead to a loss of interest and investment in the industry.
2. The news about the retirement of the executive director of the State Racing and Gaming Commission amid controversy can be seen as neutral. While there may be concerns raised about the recent controversies, the retirement is an opportunity for new leadership and potential reforms within the agency.
As an analyst, there may be some volatility in the market initially due to the uncertainty surrounding the leadership transition. However, if the new executive director is able to address the controversies and implement positive changes, it could lead to increased confidence and stability in the market.
3. The news about doubts raised regarding the market study for additional racinos in Nebraska can be seen as negative. The commission’s concerns about the adequacy of the study indicate potential flaws in the decision-making process, creating uncertainty for investors and stakeholders.
As an analyst, it is likely that there will be a delay in any decisions regarding additional racinos until the study is reviewed or a new study is conducted. This delay could hinder the expansion of the industry and potentially result in missed economic opportunities.
4. The news about the proposed move of a racing license to Ogallala being put on hold can be seen as negative. This decision halts the development of the “Lake Mac Casino Resort and Racetrack” and could dampen enthusiasm for future projects.
As an analyst, it is expected that the market for racetracks/casinos in Ogallala will experience a setback until the market study is updated or redone. The uncertainty surrounding the project may also
