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The recent opening of WarHorse Casino in Omaha has significantly boosted Nebraska’s state gaming tax revenue, setting a new monthly record. According to the Nebraska Racing and Gaming Commission, the casino generated nearly $6.9 million in gross gaming revenue in August, contributing about $1.4 million in gaming taxes. This accounts for approximately 43% of the total $3.2 million in state gaming tax revenue collected from the state’s four licensed casinos during the month.
The surge in tax receipts was anticipated following the much-anticipated launch of Omaha’s first state-sanctioned casino, WarHorse. Located at 63rd and Q Streets, the casino is a collaborative effort between the Nebraska Horsemen’s Benevolent and Protective Association and Ho-Chunk Inc., the economic development corporation of the Winnebago Tribe of Nebraska.
Lynne McNally, CEO of the Nebraska Horsemen’s Benevolent and Protective Association, expressed optimism about the casino’s future prospects. “We’re really happy to finally be open in Omaha, and we’re only going to go up from there,” McNally said, according to Kearney Hub, noting that the casino’s strong initial performance was in line with expectations.
Before August, the highest monthly tax revenue from Nebraska’s casinos was around $1.9 million, achieved in May 2023. WarHorse Omaha’s success played a significant role in setting this new benchmark, despite having only completed the first phase of its development.
Future Expansion and Enhanced Amenities
The Omaha location’s current gaming floor represents just Phase One of the project, with further expansions expected to drive additional revenue growth. McNally explained that Phase Two, slated to be completed by Spring 2025, will significantly expand the casino’s offerings, including the completion of the gaming floor and enhanced dining options.
For now, the casino’s VIP room is one of the few exclusive amenities available to patrons. However, McNally remains confident that these early offerings, combined with the upcoming improvements, will continue to attract a strong customer base and further enhance the casino’s profitability.
Comparing Casino Revenues Across Nebraska
Despite being operational for only part of August, WarHorse Omaha generated more than three times the gross gaming revenue of Harrah’s Columbus, which brought in $2.1 million during the same period. WarHorse Omaha also outpaced its sister property, WarHorse Casino in Lincoln, which recorded $4.5 million in gross gaming revenue.
Harrah’s Columbus is currently the only other fully operational casino in Nebraska, while WarHorse Lincoln is operating out of a temporary facility. The Lincoln casino is set to open its expanded Phase Two in early November, which will double the size of its gaming floor and increase the number of gaming positions from 420 to 900. Additionally, the Lincoln property will feature a new sportsbook and simulcast area, enhancing its offerings. Grand Island Casino & Resort, another state-sanctioned casino, is aiming for a full opening in early 2024.
Revenue Allocation and Future Prospects
The 20% tax on gross gaming revenue in Nebraska is allocated to several important funds. The bulk of it—70%—goes into the Property Tax Credit Cash Fund, which provides property tax relief to residents. For its partial month of operation, WarHorse Omaha contributed just under $1 million to this fund.
Additionally, 25% of the gaming tax goes to the county where the racetrack is located, with that amount split between the county and the city if the racetrack is situated within city limits. The remaining 5% is divided between the state’s general fund and the Compulsive Gamblers Assistance Fund.
WarHorse Omaha had previously offered simulcast horseracing and a sportsbook from temporary facilities before the casino’s grand opening in August. As part of its continued commitment to Nebraska’s horse racing industry, WarHorse’s racetrack at Horsemen’s Park will hold one race day this year, on September 29, meeting the state’s minimum requirement.
