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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computer technology to Nebraska's outdated approach to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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