Nebraska’s Gaming Regulator Under Fire for Not Following Its Own Rules

Article by : Erik Gibbs Jan 26, 2024

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A recent examination by Nebraska State Auditor Mike Foley sheds light on compliance challenges faced by the Nebraska Racing and Gaming Commission concerning the reporting of casino revenues.

The report reveals deviations from the Commission’s own regulations and a lack of independent audits supporting the published casino revenue figures.

Foley underscores the necessity for transparency in the reporting of casino revenues. He notes that the current approach involves presenting the earned money owed to the state with a verbal assurance of accuracy.

While expressing a willingness to trust this assurance, Foley stresses the critical importance of independent verification by a reputable firm. He highlights the increasing importance of the issue over time and emphasizes the significance of adhering to rules and regulations from the beginning.

Foley also underscored the necessity for universal compliance with rules, stressing the importance of verifying the allocated tax dollars for the people of Nebraska.

The Commission’s omission of audits raises legitimate apprehensions regarding the precision of tax revenues, a pivotal element that influenced the legalization of casino gambling in the state. In light of the auditor’s findings, the Commission is steadfastly committed to fortifying its policies and procedures.

Dennis Lee, Chairman of the Nebraska Gaming Commission, addressed the concerns articulated on Tuesday, affirming the Commission’s collaborative efforts with the auditor’s office to meet compliance standards.

Lee conveyed the recognition of the essential need for guidance as they undertake the expansion of casino gaming in Nebraska within their current facilities.

Lee also acknowledged the invaluable role of the auditor in offering necessary guidance. He made sure to emphasize that both the Commission and the casino operations under their purview are clear on their directives.

The inaugural year of casino gambling in Nebraska, 2023, concluded on a triumphant note, raking in a substantial revenue of nearly $8.9 million in December alone. The total for the year surpassed $89 million in gross gaming revenue, encompassing earnings from slot machines, table games and sports betting.

The lion’s share of this revenue, $51.5 million, emanated from Lincoln’s WarHorse Casino. This comprised $50.2 million from slots and an additional $1.3 million from sports betting.