Keep The Money In Nebraska

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* Some of the newspaper links cited below may have been removed from the newspaper's website but remain available in libraries and news achieves. 

8/14/2009   The wave of technology continues to emerge in Nebraska gaming with the introduction of SLOTS first introduced during the live race meet at Ag Park in Columbus on 8/14.  The July meeting of the Nebraska Cooperative Government Commission authorize discretionary deployment of the system. The the Selective Lottery Output Terminal System uses a highly sophisticated computer system based on patented technology that fully complies with the existing Nebraska law under the County and City Lottery Act.  At the players option, it allows the player to experience the gambling as a slot machine like experience.  Players are encouraged to "Enjoy the Good Life. Play SLOTS .... the fun of a slot machine in Nebraska."  The units represent Nebraska technology and are manufactured in Nebraska.

7/28/2009  A new game called bankshot is sprouting up across Nebraska.  The game is fully video, takes money, plays credits, and pays out.  The promoters of the game claim it is legal because the winners are determined more by skill than chance.  There is some testing evidence to support that.  State officials at this point are unwilling to declare the machines as illegal.  There are ongoing tests.  The Legislature is studying it and expected to outlaw them or do the logical thing and tax and regulate them.  The application of advanced computer technology to Nebraska's outdated approach to gaming and the continued loss of revenue to neighboring states underscores the need for gaming reform that gaming advocates have been requesting for years.

8/3/2008  Nebraska Gaming advocates received a big boost from a most unexpected place, Norfolk, Nebraska.  Norfolk is known as a conservative, Republican, fundamentally religious community that had long scorned gambling.  In 2007, polling indicated that any effort to introduce even a modest form of gambling, keno, would fail miserably at the polls.  Then in less than a year the world changed and in May 2008 Norfolk voters approved by 58% majority an expansion of gambling in that city.  The policy reversal did not stop there.  The normally conservative City government sought bids to conduct its new keno game.  Not only did the City Government set up a keno operation, it employed a contractor that promised to use sophisticated marketing to get the people of Norfolk to gamble and gamble with intensity.  Contractors offering a milder approach were rejected.  The selected contractor, confident of its ability to rev-up gambling in Norfolk threw in a $100,000 bonus.  The City is planning on using its big new revenue stream to enhance recreational facilities.

5/14/2008  In a stunning, surprise policy reversal, the voters of Norfolk Nebraska approve an expansion of gambling in Norfolk by a 58% to 42%.  The keno measure had been expected to fail.  Norfolk has a reputation of being a conservative, Republican, and fundamentally religious community.  The Norfolk expansion of gambling is seen as a very good omen for pro-gaming forces in Nebraska.

7/13/2007 The Omaha World Herald reported "In the past 12 months, total gambling revenues collected by the three Bluffs casinos grew by 7 percent, to $480.3 million."  Most of the money is coming from Nebraska.  The $300,000,000 per year loss is now at $400,000,000 per year and well over $100,000,000 per year in lost tax revenue.  In 2004 47% of Nebraskans who voted for all the Keep the Money in Nebraska initiatives saw this coming.  Now a lot of the 53% who were taken advantage of by the anti-gambling zealots wish they had also seen the light.  

5/15/2007 The Nebraska Supreme Court's ruling that the financing of education is a legislative matter that  it will not meddle in invites a 2008 casino gaming petition to provide supplemental funding for K-12 education.  Intensive polling in 2006 suggested K-12 funding was something the voters thought appropriate for new gaming revenues and a measure doing that would have broad support.  The Court's ruling coupled with a clear between-the-lines reading of its 2006 order taking a Las Vegas casino measure off the ballot now sets the stage for a broad based Nebraska gaming corporation open to the Nebraska investing public to sponsor a 2008 drive.

3/27/2007 In a surprise support for gaming expansion, the Kansas Senate followed the House in support of expanding the number of casinos by four in the state and approving 2,200 slots at the state’s three race tracks. The total number of incremental slots will be approx. 11,000. The bill is supported by the Governor, and only local option referenda are required for final approval. Most, if not all, jurisdictions are expected to approve given the positive revenue and employment impact. The casinos will be state owned but operated by third party managers. Operation of the tracks could commence within a year; two years for the casinos.

2/12/2007 By a unanimous vote the Legislature cleared the way for gaming interests (likely out of state gaming interests) to develop a gaming package with taxing provisions tailored by current polling.  Initiative was 419 adopted by the voters as part of the four 2004 gaming initiatives, two of which did not pass. It posed an obstacle to a gaming package which gaming interests want to write on a clean slate.  Its repeal made the task of writing a new gaming package much easier..

1/25/2007   With Nebraska horse racing, keno, and other gaming interests now significantly  weakened by the 2004 and 2006 Initiative efforts, an open horizon exists for out of state interests to make their move.  This will come in a two step process.  Taking advantage of a Legislature remarkably naive on gaming issues and traditional anti-gambling forces blinded by a total lack of strategic analysis, Initiative 419 passed by the voters in 2004 is being repealed.  As long as 419 remained on the books, the out of state interests had to write around its provisions and contort their well polled proposals to fit within its parameters.  Since altering 419 would take 33 votes (3 more than needed to put their plan on the ballot) 419 was a significant problem for them. The pending hasty repeal of 419 wipes the slate clean and allows them the flexibility to optimize 2008 plans in the next  Legislative session when the second step of the process will be played out on the floor of the Legislature.  This 2 step process is a hallmark of the sophistication of things to come.  If there is any consolation for Nebraska gaming interests it is that the traditional anti-gaming interests have been totally out-maneuvered by this strategy.

11/08/2006  The delay in the Supreme Court rendering its opinion affirming the propriety of the Video Keno Initiative and the campaign impediments the delay caused, when coupled with what now is becoming a sad  truism, train-wrecked the Video Keno proposal at the polls.  The sad truism is that in spite of 56% of Nebraskan's wanting expanded gaming, they can not agree on any plan.  Video Keno had only slightly more appeal than the dismal showing made by the Legislature's Amendment 3 in 2004.  The comprehensive 2004 petition package came the closest to a winner by passing 2 of its 4 propositions with its weakest proposition losing by only 3 percent.  The nearly successful 2004 drive may have a lesson in it.

10/30/06 The Group sponsoring Video Keno in Nebraska attempted to reveal what is believes its truly behind opposition to expanded gaming in Nebraska.  In a revealing press release Nebraskans for Video Keno said:

"Are the Iowa casinos fighting against Video Keno in Nebraska?

A large law firm which receives money from Harrah’s Casinos in Iowa also backs the group opposing Video Keno Initiative 421 in Nebraska.

Hal Daub, an attorney and spokesman for the group “Gambling with the Good Life” which opposes Initiative 421 for Video Keno in Nebraska, is also an attorney and partner at Blackwell Sanders Peper Martin LLP (Blackwell), a law firm which has represented  Harrah’s Casinos Inc. (Harrah’s) which owns casinos in Iowa.

Harrah’s is the largest casino company in the world and owns two casinos in Council Bluffs, Iowa: Harrah’s Casino and the new Horseshoe Casino.  Harrah’s is currently experiencing record profits thanks in part to Nebraska gambling dollars flowing into the Horseshoe Casino in Council Bluffs.

Blackwell receives money for representing Harrah’s.  For example, Blackwell represented Harrah’s in the acquisition and development of the $350 million Riverside Casino Center, the largest riverboat gambling development in the United States.  That project is listed on Blackwell’s web site as one of the firm’s principal accomplishments.

But in addition to receiving money from Harrah’s, which operates casinos in Iowa, Blackwell and Daub also support Gambling with the Good Life, which opposes the Video Keno Initiative in Nebraska. Gambling with the Good Life is the group headed by paid consultant Pat Loontjer.

Blackwell and Daub have previously backed Gambling with the Good Life and their efforts to limit gambling in Nebraska.  For example, according to a campaign report in December 2002, Gambling with the Good Life owed Blackwell over $111,000 in legal fees from a lawsuit fighting a gambling initiative. By the time the group filed its next campaign report a year later, their debt to Blackwell was erased, with only $12,000 paid to Blackwell. There was no explanation of what happened to the remaining debt of nearly $100,000. 

Are Iowa casinos afraid they might lose money if Nebraskans approve video keno? 

Keno revenue in Nebraska dropped 10 years ago when the casinos opened, and never fully recovered.  Hundreds of millions of dollars leave Nebraska and go to the Iowa casinos every year.  With video keno, we have an opportunity to offer Nebraskans another way to play keno.  We hope to bring some of those gaming entertainment dollars back to Nebraska communities and businesses.  That’s why the Iowa casinos would be concerned."

10/27/06

The Supreme Court finally released its opinion in the Video Keno case essentially stating that the measure did not involve an expansion in the forms of gambling and was just keno.  That being the case, it is not similar to the 2004 Initiative drive and is rightfully on the ballot.  Both sides of the issue had become impatient with the time it took to reach a decision, but as it turned out  the Court's vindication of the Video Keno forces has them saying it was worth the wait.  

The Nebraska Cooperative Government was at the time of the Court's decision by coincidence holding its quarterly meeting to distribute over $300,000 for community betterment projects to its member communities composed of 100 Nebraska's rural counties, cities, and villages operating keno games.  They had been studying the Video Keno proposal since it was filed and once the Court gave the green light passed the following resolution:

RESOLUTION OF THE NEBRASKA COOPERATIVE GOVERNMENT

Whereas, keno proceeds have contributed significantly to community betterment projects in the member communities of the Nebraska Cooperative Government and many other Nebraska Cities;

Whereas, the social costs of keno in these communities have proven to be minimal;

Whereas, changes in technology now make it possible to play keno without the necessity of a paper ticket; and

Whereas, video keno will help communities maintain their keno revenue and be competitive with society's technological advances;

NOW THEREFORE RESOLVED: The Nebraska Cooperative Government hereby endorses Initiative Petition 421, the "Video Keno Initiative", and encourages its passage in the 2006 General Election.

10/26/06  It was predicted by many that the big opening of the Horseshoe Casino in Council Bluffs and its spectacular success would cut cut Ameristar's business, after all how could Nebraskan's take any more money out of state than they already were?  If the Horseshoe got a huge new piece of the pie there would be a whole lot less for Ameristar, right?  Wrong.  The pie just got bigger.

For the 3rd quarter of 2006 Ameristar announced even better than estimated results.  Ameristar (ASCA) says it had  EPS of $0.37, $0.01 ahead of analysts' recently upward revised $0.36 estimate and $0.03 ahead of the consensus.  On October 5 ASCA announced that 3Q EPS would be in the range of $0.35-$0.36. The report confirmed that much of the initial upside surprise relative to  estimates was due to stronger results from Vicksburg ($12.9M of EBITDA in 3Q, +17% y/y) and Council Bluffs ($17.6M, only -3.5% y/y vs. expectations for -10% to -15%).  Market speculation now is "the two most likely candidates for ASCA’s balance sheet capacity are an expansion in Council Bluffs or an external acquisition."  More money going to Iowa.  Aren't the anti-everything people fighting gaming reform in Nebraska doing a great job for our sister states?

10/20/06  The Supreme Court's continuing failure to issue a ruling on the suit that many observers feel there is probable cause to believe is being underwritten by gaming interests from neighboring states to keep video keno off the ballot is causing much discussion.  Some feel that since it is apparent the Court is having great difficulty determining  whether it is too similar to the 2004 petitions means that it is not too similar.  If it is hard for the  Court to  know then how are the citizen legislators supposed to know?  Close calls should be resolved in favor of the Initiative process and not  against the People.   The Court's failure to issue an opinion in time for a reasonable political process and debate before the election is hamstringing the ability of  all sides to raise funds and conduct the election process.  It is depriving the voters of a fair  election.  Is not such an infringement on the rights of a Legislative body a violation of separation of powers and the freedom to engage in political activity guaranteed under the First Amendment to the Federal Constitution?  Video Keno may now have far less to do with gaming and much more to do with the sanctity  of the the Initiative process that Nebraskans hold dear.  This petition was not backed by out of state money and did not use out of state circulators. The 90,000 Nebraskans that signed it deserve to the right to conduct an election process.  About the only thing that can now remedy this is a postponement of the vote until 2008 so that all may be heard and a fair election an be had.

10/13/06  An expected decision by the Supreme Court did not come today as many expected it would.  This leaves the political process in limbo, hampering efforts by the pros and the anti's to get their message out and underscoring the consequences of the Legislature's failure to responsibly address the gaming issue and the fact that the time has come to repeal the provisions of the state constitution which hobble legislative prerogative on gaming legislation.

10/07/06

A study released by the Stanford University School of Medicine indicates that nearly 6% of adults find themselves unable to resist frequent shopping binges that leave them saddled with debt, anxiety, and depression.  6% is even higher than the exaggerated percentage of people the anti-gambling zealots claim suffer from gaming addiction.  After the video keno issue is resolved either by the Supreme Court or the voters, the anti's will be able to shift their focus from the "evils of gambling" to the "evils of shopping".  It is recognized that easy credit and credit card debt is a far greater cause of bankruptcy and family problems than gaming activities.   Shopping Centers beware, you may need to move to Council Bluffs to protect Nebraska's good life.

09/18/06  The Supreme Court will hold a hearing on October 4 or 5 for the purpose of determining whether the rule in the Boyd casinos case will also be applied to the video keno petition.  At issue is whether video keno's Initiative 421 is too similar to the 2004 petitions.

09/15/06

The Nebraska Supreme Court sealed the fate of the effort by Boyd Casinos of Las Vegas to amend the Nebraska Constitution and enable Boyd to get one or more casino licenses in Nebraska.  Boyd had wanted the Court to split hairs between its proposal and a proposal that nearly passed in 2004.  The Court instead painted with a broad brush and seemed to say casinos are casinos and casinos are off limits for 2006.  This means that in 2008 Nebraskans will have what might be a last chance to responsibly deal with the gambling issue themselves by simply repealing the section of the Constitution causing all the controversy and costing the state nearly $400,000,000 every year in gaming subsidies to other states.  A simple repeal would then allow the legislature and/or the petition process to pass responsible gaming statutes independent of Las Vegas interests and really keep the money in Nebraska.  On a related matter, the Court's decision leaves in doubt the fate of the Video Keno proposal which is still headed for the November ballot as Initiative 421.

08/31/06

After a decade of effort and watching the Iowa casinos decrease their  community betterment keno dollars, the luck of Nebraska Counties, Cities, Villages and their keno operators seems to have suddenly changed.  The all Nebraska group, touting that not one cent of Vegas money is behind it, is reported rolling out a grassroots campaign.  Local governments would receive a revenue stream from the games consistent with the formula set out in Initiative 419 approved by the voters in 2004.  Anti-gambling zealots now have to face the reality that in spite of their rants in the late 1980's and early 1990's keno did not spell the end of civilization.  Quite to the contrary, it resulted in hundreds of millions of dollars in community betterment.  

08/30/06

Rulings from the Lancaster County District Court today amounted to: (1) a defeat for the bordering casino interests who would prefer not to have voters vote on video Keno this November and (2) a timeout on the issue of defining the difference between what is an "illegal game of chance" and a "legal lottery".  The Court ruled that the video keno measure is different enough from the 2004 gaming petitions that the Secretary of State was correct in saying he would put it on the ballot.  Even if the bordering casino interests appeal the Judge's ruling, it does not appear likely the Supreme Court will remove it from the ballot.  It appears that the show down traditional anti-gambling forces wanted with video Keno will happen at the ballot box.  If voters vote to allow the modernization of keno so it can be played electronically on a video screen instead of with crayons and paper then the Courts will decide if that change of form is the difference between an "illegal game of chance" and a "legal lottery".  In the 1980's  the Supreme Court seemed to say that it is not how the game is played but whether it is played for community betterment or not.  However,  2 anti-gambling Attorney Generals later sided with anti-gambling zealots and voiced their opinions that the  difference between an "illegal game of chance" and a "legal lottery" is whether the gambling is done with a paper ticket.  If passed, the video Keno petition will be the first chance the Supreme Court will have to say whether the Attorney Generals' pronouncements make sense.

08/29/06

The crippled Boyd casino petition drive is now in the Supreme Court.  The Court has promised to hear it quickly, but no word on whether a would be made before deadline for printing ballots.  In 2002, it took almost a year after hearing the 2002 gaming petition case for the Court to rule.  Then they reversed earlier cases that said technicalities in the petition process should be over looked.  In the context of that gaming case the Court took a hard line and threw out 178,000 signatures because a notary stamp.  Gaming petitions seem to find rough seas in the high Court.  It remains to be seen if Boyd gets lucky.   

The Secretary of State declared the video Keno petition has the necessary signatures.  It is opposed by 2 forces:  (1) gaming entities in bordering states who believe video Keno is threat to their revenue, albeit a minor one, and  (2) traditional anti-gambling forces composed of two elements: moral impositioners and those who feel the placement of gaming revenue in the hands of local communities is counterproductive to a necessary migration of population to a developing metro area.  Those 2 anti-groups are at odds with each other on video Keno strategy.  One strategy is to pursue a law suit to keep it off the ballot or void it if it passes.  The other strategy wants it on the ballot so it can be defeated and thus pre-empt a stronger 2008 petition drive.  A law suit in progress is challenging the video Keno petition.

8/17/06

The petition process is well into the litigation phase.  So far, the  3 petitions by Boyd Casinos have been dismantled by the process.  The petition that would have created a gaming commission and required casino licenses to be issued within one year has been abandoned by Boyd after key public officials Boyd was counting on to side with it, turned on it.  Then a Judge issued a ruling crippling the Boyd approach of pairing the ok for 3 casino establishments with funding for K-12 education.  The Judge ruled that the education provisions were too similar to those passed by the voters in 2004 but that the 3 casino establishment idea could proceed to the ballot if it had enough signatures.  Both sides are expected to appeal that ruling.  Regardless of the outcome of an appeal the chances are time has run out for Boyd.  It will take 45 days to do a count if the Supreme Court does not issue a stop order on the count.  The law requires that ballots be mailed to absentee voters no later than October 20.  That leaves only 15-20 days for another round of suits to be resolved in Boyd's favor on the remaining petition.  The Anti-gambling groups have the right to file a suit after the count questioning the single subject issue, the secret sponsor issue; and other technical matters.  The Boyd petition appears to have 3 subjects:  (1) the authorization of casinos; (2) the creation of a gambling monopoly in each of three zones;  (3) a limitation on the judiciary's ability to construe the language of the constutiton.  There were no individuals disclosed as sponsors of the Boyd Petition.  Those individuals chose to hide behind corporate veils and remain undisclosed.  Another novel issue may also be presented by a party claiming the 3 Boyd petitions were presented as a package and now that the package has been dismantled it is different from what was signed.

Meanwhile, the video keno petition, will also have a day in court before the election.  Anti-gambling groups indicated they had adopted a strategy of trying to beat the under financed group of Nebraskans behind the video keno measure at the polls and, if the measure passed, go after it in court arguing the 3 year rule and a hard to understand argument made against it by  2 anti-gambling attorney generals.  However, that strategy was upset last week by a surprise attack raising those issues in a lawsuit.  The ear-markings of that suit make the Iowa casinos the primary suspects for being the undisclosed money behind it. The video keno proponents are reportedly torn between 2 positions:  One wanting the legal cloud removed prior to taking a vote and the other believing that, regardless of legal technicalities,  the courts will defer to the will of the people if it passes.  Thus, the second faction desires to see those issues stalled on a technicality until after the election. 

7/17/06

The committee front created to be the face of the Boyd casino effort filed a suit to get the matter on the ballot.  The suit reveals some of Boyd's inner thinking.  Boyd sacrificed one of its 3 petitions.  It was the one that called for the appointment of a gambling commission.  The commission would have been appointed by 2 or more of the following:  Secretary of State, Attorney General, and Education Commissioner.  Normally, such appointments are made by the Governor and at the time the Boyd petitions were filed there was a chance the anti-gaming Tom Osborne would be Governor.  The abandonment of that petition also undercuts one of the Secretary of State's arguments for keeping the Boyd move off the ballot.  The move also enhances the worth of the renown Boyd Lobbyist, Walt Radcliffe, who now needs to make sure Boyd candidates sympethic to Boyd have the funds to be elected to the Legislature and then set the stage in the Legislature for the coveted Boyd gaming monopoly in the Omaha area.  While this legal move is an exceedingly clever one by Boyd Attorney, Al Peterson, it is not without risk.  It leaves the door open for a third party who signed all 3 petitions to take control of the litigation of the 3rd petition and also allege that the 3 petitions were presented as a single package and he or she would not have signed the 2 without the 3rd.

7/13/06

While Boyd Casinos (and a handful of silent Omaha partners) licks its chops wheeling, dealing, and maneuvering with the best lobbyists and attorneys in the state to get a monopoly at the Nebraska gaming banquet table and while Nebraskans can't figure out how to keep the money in Nebraska, Nebraskans suffer a systemic paralysis on the issue and Iowa sees a 10% increase in the amount of revenue it sucks out of Nebraska since 2004  (and that is only for the 3 casinos closest to Omaha).   Why can't Nebraska figure out how to do this right and keep the money in Nebraska?  The reason may be surprising and have little or nothing to do with those cited by the press and anti-gaming zealots who now have cost Nebraska untold hundreds of millions of dollars.  If all goes as Boyd's ingenious strategists have planned, this November Nebraskans may face an ugly choice - send the money one way for at least 2 more years or send it the other direction for decades accompanied with a whole lot of political power.  They have the anti-gambling zealots to thank for that choice.  

7/12/06  

Secretary of State John Gale followed A.G. Bruning's opinion on the Boyd Petitions but did not follow it on the video keno petition.  The result is that the Boyd issues will be in court by mid-July and have an outside chance of being decided in time for the election.  Look for Boyd to ask the Court to order Gale to start counting the Boyd petitions while the litigation progresses arguing Boyd will be irreparably harmed if it beats Bruning in Court and then has to wait for a count.  Boyd actually gained a precious 45 days of litigation time as a result of the rulings by Bruning and Gale.  Meanwhile,  court action can not take place on the video keno petition until after the count is finished in approximately 45 days .  With 3 complex issues involved in the keno case, it is unlikely they will be resolved in time for the matter to be placed on the November ballot if the issues are raised prior to the election.  Those 3 issues are: (1) Must it, too, wait 3 years because is it too similar to the 2004 drive; (2)  What is the difference between a "lottery" which is permissible in Nebraska and a "game of chance" which is impermissible; and (3) Does the limitation on the "Legislature"  imposed in 1875 preventing the "Legislature" from authorizing "games of chance" extend to the people's Initiative rights instituted 40 years later?  

Bottom Line: What is down could be up and what is up could be down.

7/10/06

Attorney General Jon Bruning ruled that the Boyd petitions violate the three year time out rule.   Bruning will now control the litigation in defense of his position and make strategic decisions with regard to its fate and the vigor of the defense.  Bruning met with Boyd's people before the Initiatives were ever filed.  After the meeting Bruning's was hand-selected by Boyd's people to be one of 3 people to seed and thus control the gambling board that would award the monopoly casino license in each congressional district.  Did Boyd miscalculate the Attorney General or is the Boyd move proceeding as planned?  Had Bruning ruled the opposite, he would have lost control of the attack on the Boyd petitions.  There is case law to indicate that, as a result of Bruning's position, independent and unquestionably sincere anti-gambling groups such as Gambling with the Good Life may not be able to participate in the litigation.  If Bruning just happens to lose this case then Boyd wins and Bruning can claim he was anti-gambling.  Bruning would then get to be a major player on the gaming control board and in a position to earn substantial financial and political support from Boyd. All eyes will be on the vigor of Bruning's defense of the law suit Boyd will file.

7/5/06

The Native American petitions fell far short of getting the necessary signatures.  They simply got started too late to have any hope.  It appears the Boyd petitions and the Video Keno Petition may have spent a record $1.5 million to get what might be sufficient signatures.  Both will face tremendous court challenges now and while in totality they are very similar to the 2004 measures, on their faces there is a reading that puts them in serious conflict.

6/14/06

More of the "evils of gambling" are revealed in the latest U.S. Bureau of Economic Analysis Report on the Real Gross State Product by State 2001-2005.  That naughty state of Iowa ranked 22nd with a growth of 13.63% and the bad sister to the north, South Dakota, ranked 5th with a growth of 18.5%.  The saints of the Nebraska Good Life came marching in behind with a 31st ranking and growth of 10.69%.  The facts simply disprove all the talk by anti-gambling zealots that gaming is counter productive to economic growth.

5/8/2006

With the hotly contested primary elections capturing most of attention, the petition effort by Boyd Casinos of Las Vegas has been flying under the radar screens.  That will likely change as soon as the primary election is over.  Already the organization representing nearly 100 local governments is expressing grave concerns about the ambiguous language of the Boyd effort.   The Nebraska Cooperative Government, a leader in the 2002 & 2004 gaming petition efforts,  took action at its April 28 meeting  "to express the grave concern ...  with the provisions of  ... Boyd Casinos ... conflicting with the current allowable uses of keno lottery revenue and ... regarding the conflict ... of said Boyd Casinos initiative petition with the revenue provisions of the pending video keno initiative petition".  The Cooperative Government says still another possible  reading of  the Boyd measures could also restrict the operation of keno to three establishments in the state.

4/10/06

Nebraska's contribution to the Iowa economy just keeps growing and growing.  Following the rebranding of Harrah's in Council Bluffs as the Horseshoe casino, more Nebraska money than ever is moving to the Horseshoe. Prior to the casino’s re-branding, monthly revenue was in a range of $10MM-$12MM, and quarterly earnings in the same range. It is  believed that quarterly earnings will be more than $14MM on monthly revenues of $13MM-$14MM.  Iowa has Nebraska's anti-gambling zealots, including Governor wannabee Tom Osborne, who help defeat 2 of the 4 2004 Initiatives to thank.

3/23/06

The US Census Bureau's annual survey of manufacturers is out and it is no surprise.  It shows that our sister states with gaming are able to pay higher salaries to manufacturing employees than Nebraska.  South Dakota pays $15.70/hr and ranks 22nd from the top among the 50 states.  Iowa pays 12.21 and ranks 38th, and the Good Life in Nebraska pays 11.12 and ranks 4th from the bottom.  

2/21/06

A Las Vegas casino launched a petition drive to do about the exact same thing that another Las Vegas casino failed to accomplish in 2004.  In a confusing salvo of 3 petitions,  this casino wants 1, 2, or 3 casino establishments but it doesn't say for sure how many there would be.   Nor, does is say whether establishment means locations, parcels, or business operating companies, i.e. XYZ Bank is a banking establishment with branches or ATM's in dozens of locations. The state would be divided into 3 districts.  The Attorney General, Secretary of State, and Commissioner of Education pick 4 agreeable parties to sit with them on an un-elected Commission.  That Commission essentially gets to decided which districts will have casino activity.  They will also pick what company gets the monopoly casino license for that district.  There is no tax imposed by the petitions, but if one is then the Legislature is forced to use it for K-12 education, but the Legislature can pick which K-12 schools actually get the money.  To get the horsemen to not actively oppose this Vegas Initiative, if there is a tax imposed on casinos, about  $5,000,000.00 to $10,000,000.00 per year will go to racing purses.  About three million will go to gambling addiction programs.  This amount is frozen and does not increase with inflation.  The balance after payment of operating expenses will go to ... well you know where.

2/14/06

While a Mississippi consulting firm and  a powerful and prominent Nebraska lobbyist work feverishly behind the scenes with a Vegas casino operation to put together a 2006 petition drive for casino gaming in Nebraska, still another petition sprouts.  This one is by the Native American Tribes.  Contrary to some prior petition years where gaming forces were somewhat unified, 2006 has the potential to become a real petition zoo.  Anything similar to a gambling petition faces a confusing mess from the very beginning, a real challenge to collect the necessary signatures between now and the first of July, and a number of very credible court challenges.

2/5/06

A number of the larger keno operators filed a petition to eliminate burdensome rules placed on the keno games in the early 1990's.  The petition calls for allowing touch screens to replace paper keno tickets.  Although it is just keno, it is expected to face a challenge that it violates the Nebraska Constitution by being similar to Initiative 420 which was narrowly defeated in 2004.  The Constitution requires that similar petitions skip an election cycle.

1/16/06

The prize of a $300,000,000 to $400,000,000 per year revenue stream remains on the gaming table.  Nebraskans can't agree how to get it or even if they want it.  So, another Las Vegas casino may be willing to roll the dice and go for it!

1/14/06

Hopeful news from Westerville, Ohio, as a 1875 prohibition was lifted and liberty again flows freely.  1875 was the same year as gambling and divorce was prohibited by the Nebraska Constitution.

12/02/05

Nebraska Governor wannbe Tom Osborne reportedly is lamenting the "potential for a lot of farmers in Nebraska going broke" when a court ruled that Nebraska was violating a water rights agreement with Kansas.  As reported in NebraskaStatePaper.com  "There are estimates that Nebraska could be required to send 100,000 acre-feet of water into the river basin by 2007. Either that,  or pay $15 million in fees and damages in 2008."  In 2004, Osborne wildly crisscrossed Nebraska opposing keeping over $300,000,000 in gaming activity ($100,000,000 in taxes) per year in Nebraska. Money that could have been used to mitigate situations such as this one.   The state continues to pay over and over again for Osborne's narrow mindedness.  One issue not yet addressed publicly  is the legality (in view of Federal Election Law) of Osborne and some of his congressional office personnel engaging in their anti-gambling crusade last year.  

11/04/05

On the anniversary of the defeat of Initiatives 417 & 420 J.P. Morgan says this about Harrahs': "We expect growth to reaccelerate by the June 2006 quarter. 2. North Central revenue and margin improvement in 2006. The modified tax rate in IL, and completion of construction/refurbishment in Kansas City and Bluffs Run should lead to 10-20% EBITDA growth in 2H:06. 3."    Harrahs' shareholders owe a big thank you to Nebraska's anti-gambling extremists who mislead Nebraskans into thinking that some how a NO vote would make gambling go away when it really just made Nebraska money go away.

10/24/05

The statistics are in for the first 3 quarters of Fiscal Year 2006 for Iowa's gaming revenue. There seems to be no end to the increasing amount of the subsidies from Nebraska taxpayers.  The first 3 quarters of the new fiscal year show revenue up for Iowa again at the locations closest to Nebraska population -  $108,956,334 compared to last year $106,361,331 for Bluffs Run, Ameristar, and Harrahs.

8/17/05

The Lincoln paper reports that Governor Heineman's trip to Cuba hit the jackpot.  As a result Cubans will spend about $1,000,000 per month in Nebraska on agricultural products for each of the next 18 months.  That is really good news!  In the same period Nebraskans will spend $30,000,000 per month in neighboring states on gaming products.  29 more Cuba trips and Nebraska should break even.

7/22/05

The Omaha paper laments, it's "more than petty cash",as Nebraska kisses $145,000,000 good bye in the nuke settlement.  The paper compares the number to the $684,000,000 for aid to schools; $162,000,000 for corrections; $56,000,000 for the State Patrol; $648,000,000 for roads; $22,000,000 motor vehicles department; $14,000,000 agricultural department; and $9,000,000 Attorney General.  Notably missing from the comparison is the  $300,000,000 to $400,000,000 aid that Nebraska sends to our sister states in gaming dollars each year.  Sometimes, it helps to keep things in perspective. 

7/15/05

The torrent of facts just keeps rushing in proving the extremely misleading nature of last year's anti-gambling campaign.  The party line  was that when gaming is legalized, bankruptcies abound and the credit ratings are destroyed.  In the latest credit data comparing Nebraska's 2 neighbors with the most active gaming policies, South Dakotans scored 711, Iowans 698, and Nebraska 697. The numbers speak for themselves, but if one were to believe the misleading information of the anti-gambling zealots one would think Nebraskan would have way higher scores than Iowans or South Dakotans.

7/14/05

The Omaha paper's online headline read "Gamblers in Iowa lost more than ever" , but the story was "Nebraska sends record number of dollars to Iowa" with 44% of the $1.1 billion spent on Iowa's gaming products in the 2004-2005 fiscal year coming from operations on the Nebraska border.  Iowan's were gleefully using the word "wonderful" to describe the bumper crop they have learned how to grow and harvest.  Nebraskans are left simply shaking their heads and wondering how in the world they ever let themselves be tricked out of voting for Initiatives 417 and 420 last November.

7/12/05

Just how deceptive was last year's campaign against the gaming Initiatives?  The people of Nebraska were told that gaming reform would destroy economic growth, that for ever dollar of good there was many dollars of bad.  Now in the light of day, the facts keep proving such wild statements were simple political manipulation and not true.  The US Bureau of Economic Analysis released statistics laying to rest the assertion that gaming reform is counterproductive to economic growth.  South Dakota and Iowa, Nebraska's 2 neighbors with the most active gaming policies, far out paced Nebraska in the 2000-2004 period.  Iowa had 140% of Nebraska's growth and South Dakota had 155%.  Leading the nation in growth was - you guessed it - Nevada 211%.  One can debate all day long about how much growth gaming causes but one thing is clear. The claims that gaming expansion would "neutron bomb" economic growth were simple deceit.

06/30/05

The new census figures are out and as the Lincoln Journal-Star puts it: "In 70 of Nebraska's 93 counties, the rattle of moving trucks and funeral dirges drowns out the crying of newborn babies and new neighbor introductions."  What makes Iowa different?  Were Nebraska's rural communities sold a bill of goods when prominent politicians and social figures promised "the good life" and convinced them to turn down tens of millions of dollars in gaming revenue per year?

6/28/05

Nebraska's neighbors with progressive gaming laws continue to pull ahead and Nebraska continues in an economic dead man's spiral.  You can't get much worse than dead last in the economic competition.  Good life requires adapting to change, riding the wave rather than being crushed by it.  Languishing in  nostalgia leads to dead last, except when it comes to taxes and a whole host of other social handicaps.  Nebraska has higher rates of such handicaps than its pro-gaming neighbors.

6/6/05

In an interesting side note, Congressman Tom Osborne who lead the charge against  Initiatives 417-420 which were the product of many years of study, planning, and efforts by the  Nebraska Cooperative Government said: "Many leading economists and philosophers across the Midwest have proposed similar ideas [to those of the Cooperative Government] about the ways to improve the economic outlook for rapidly depopulating rural areas."  

Just maybe the Cooperative Government and the Keep the Money in Nebraska Committee are acting in the public interest contrary to the wild assertions of many who followed Mr. Osborne's devout anti-gambling lead in last November?  It was a shame that Mr. Osborne never talked with the Cooperative Government to learn about its dedication to rural communities before he took up  the cause of the anti-gambling zealots.  Hundreds of small rural communities might now be getting checks totaling tens of millions of dollars each year.

5/15/05

Characteristically,  Warren Buffet has avoided embroilment with local issues, especially local issues affecting out state Nebraska.  He broke with that pattern to become embedded with the anti-gambling crusade last November.  Perhaps with his vast financial wisdom and resources, he had a better idea for turning around Nebraska's economy than did the Nebraska leaders who formulated the Initiative petitions.  Why not politely ask?   Warren Buffet has not responded..

3/14/05

In an interesting opinion piece, Harold W. Andersen, Omaha World Herald contributing editor, comes to the conclusion that Nebraskans are considered "cash cows to be milked for Iowa's benefit".  The piece laments how Iowans have learned how not only to keep the money in Iowa but get Nebraska's, too.  It sets forth  the logical consequence of opposition to modernization of Nebraska's antiquated gaming laws.  

3/12/05

Forces supporting the reasonable legalization, taxation, and regulation of gaming in Nebraska turn up the heat to enforce the laws prohibiting the wide spread illegal gambling that exists in Nebraska.  Attorney General Jon Bruning took to the limelight in the recent petition drive by joining anti-gambling forces decrying gambling and arguing against reform.  Now the spotlight is on him to get rid of the illegal machines and bookmaking that provides a huge regulation free and tax free cash income stream for who knows whom.  

2/28/2005

Isn't it odd that there is no outcry by the anti-gambling people about the illegal slot machines, not to mention book making?  The Nebraska approach seems to be to keep gambling illegal on the books and then not enforce what's on the books.  That keeps the anti-gambling people happy, the gamblers happy, and the tax free-regulation free operators of the illegal machines really really happy. It makes for an interesting collation that opposes gaming reform. Meanwhile, the taxpayers lose out on their share of hundreds of millions of dollars.  

2/27/2005

Iowa continues to enjoy the generosity of Nebraskans while Nebraskans continue to enjoy some of the highest property taxes, income taxes, sales taxes, and telephone taxes.  South Dakota has the best climate for small business in the country and no income tax.   Nebraska's  rural areas continue to depopulate.   Read & Weep

11/18/2004

Adoption of operative gaming provisions are delayed in Nebraska by the defeat of 417 & 420 and Council Bluff's Iowa casino breath a big sigh of relief and announce large facilities expansions.  The expansions are expected to push Nebraska loses from $300,000,000 per year to $400,000,000 per year before Nebraska gets a chance to adopt operative gaming provisions in 2006.   The credibility of the anti-gambling elements who represented that a "no" vote would stop the loses is called into question statewide by the big Iowa expansion.  None of the major personalities who fought the Initiative movement in Nebraska appeared in Iowa in opposition to the expansion.

11/03/2004

Half way there!  Nebraskans adopt Initiatives 418 & 419.  Amendment 3, although devastated at the polls, splits the pro-gaming vote just enough to cause the defeat of Initiatives 417 & 420.  Pro-gaming forces are invigorated by the clear majority of Nebraskans who said enough is enough.  Keep the Money in Nebraska leadership is being called upon to write a plan the majority can agree upon.

10/26/2004

Omaha billionaire Warren Buffet who has been preaching against expanded gaming in Nebraska has been caught in a fruity situation.  It seems that in 1999 his company invested over $100,000,000 in Allied Domecq PLC.  It owns a chain of bars in Great Britain that runs slot machines.  They are called fruit machines in England. 

Buffet was also a leading financial advisor to California Governor Arnold Schwarzenegger, who recently announced a landmark expansion of gambling operations in California to add thousands of new slot machines statewide and create one of the world's largest casinos.

10/14/2004

The Omaha Federation of Labor  AFL-CIO endorses Initiatives 417, 418, 419 and 420. 

Job-creation and the economic benefits occur with expanded employment in an area.   Each of the 2 large casino facilities permitted under the Initiative package and estimated to each cost $300,000,000 to $500,000,000 would create thousands of construction jobs and at least 1,200 new permanent tourism jobs and stimulate area retail stores, restaurants, museums, athletic events, convention business, and entertainment venues.  Such a significant increase in new industry would result in  job retention and creation in all businesses including more sales, lodging tax, and property revenue for every community in Nebraska as well as the state. 

10/4/2004

Nebraska Public Television hosts a live debate between the pro's and the con's.  Julia Plucker and Greg Robinson, the mayor of Kimball represent Initiatives 417 418 419 and 420 in this enlightening presentation.  The special presentation will be repeated on Public Television Tues. Oct. 12 at 8 p.m. and Wed. Oct. 13 at 9 p.m.  

9/24/2004
Two senators who supported placing Amendment 3 on the ballot are duking it out over who should get the second casino. Joel Johnson of Kearney points out Kearney's merits and Ray Aguilar says it should be Fonner park in Grand Island. Johnson counters that maybe no place outside of Omaha should have one. The argument foreshadows the legislative wrangling which is certain to take place over the coming years if the voters adopt Amendment 3.

Initiatives 417, 418, 419, 420 foresaw the issue and resolved it by carefully authorizing 4900 gaming devices in addition to 2 Omaha casinos and equitably distributing them to all communities for placement at racetracks, special interstate sites, and in limited form in some bars. While 4900 machines for 75,000 square miles is about the same number as are in the 100 square miles of Council Bluffs, it is a sufficient number to solve the problem with Amendment 3 underscored by the Johnson - Aguilar dispute.

This is not the first legislative controversy involving Amendment 3. In August, five other senators who voted for placing Amendment 3 on the ballot stated they were opposing it now.

9/19/2004
 The Omaha World Herald breaks a story revealing who is financing the campaign for Initiatives 417, 418, 419, 420. Just as the committee has been saying all along, it is 80% by Nebraskans and 20% by folks with strong Nebraska ties. Other reports show that 100% of the financing for the far more expensive
television campaign for Amendment 3, the other gambling proposal on November's ballot, is coming from one source which operates in Las Vegas and China called The Venetian.

 8/23/2004
 Pat Loontjer, long time anti-gambling advocate and head of an outspoken anti-gambling group, has been rebuked by her associates for agreeing to debates with Julia Plucker, spokesperson for Keep the Money In Nebraska. Loontjer and Plucker made the agreement to debate each other in an exchange with reporters last week just prior to the Secretary of State announcing the overwhelming success of the Keep The Money In Nebraska petition drive. The fact that her associates don't want her to debate is read as a sign that they do not believe Loontjer can defend the assertions she has been making for the last 10 years. Plucker called for the debates with Loontjer to be aired statewide. The Loontjer group's activities over the years helped put hundreds of millions of Nebraska dollars into public improvements and tax relief in Iowa and surrounding states.

 8/20/2004
 Gov. Arnold Schwarzenegger, announced a landmark expansion of gambling operations in California to add thousands of new slot machines statewide and create one of the world's largest casinos. The California legislature must approve the Schwarzenegger decision, but in light of California's revenue shortage there is little doubt about that. The move is expected to bring in at least $800 million annually to be shared by cash-strapped California and its Native American tribes. For over a year Schwarzenegger and his economic advisors have been working on a strategy for California.
  Nebraska billionaire, Warren Buffet, has been a key economic advisor to Schwarzenegger.  His role in the discussions which preceded the Governor's pro-gambling decision is unclear.

 7/26/2004
 Pennsylvania Governor Ed Rendell signed laws on July 26, 2004 authorizing 61,000 slot machines in Pennsylvania more than any other state except Nevada and using most of the state's share to pay for a $1 billion cut in property taxes per year. The billion dollars Pennsylvania will raise will increase to seven billion dollars the total tax revenue raised nationally by state and local governments from gambling taxes. Governor Rendell, recognizing that all other new revenue sources had dried up, said "Slots were the only plausible vehicle for property tax relief, which our state desperately needs." Pennsylvanians had been spending their gambling dollars in neighboring states such as New Jersey and the Governor's move enabled Pennsylvanians to keep their money at home. Four states legalized expanded gambling to raise revenue just this year alone, bringing the total number to nearly 40.

 
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