Nebraska casinos winning back Iowa revenue, according to both states’ regulators
Iowa gaming revenue is down, and Nebraska’s three new casinos have been stated as affecting those numbers especially between July and October 2023.
Since the launch of state-sanctioned casino gaming in Nebraska in 2022, the state of Iowa has begun to notice decreases in revenue at two of its top-performing casinos. Proponents of regulated gambling in Nebraska have said the state now deserves to keep the revenue that had been leaking into the neighboring state.
Lynne McNally, Nebraska Horsemen’s Benevolent and Protective Association (NHBPA) CEO, commented, “We’ve been saying this all the time. The majority of revenue spent in those casinos in Council Bluffs comes from Nebraska residents. It comes directly out of Nebraska’s pocket, and therefore the tax revenue is being accumulated in Iowa. That’s what we’ve been trying to prevent.”
The NHBPA represents the horseracing trainers in the state and campaigned alongside the Winnebago Tribe of Nebraska and its development firm, Ho-Chunk Inc, to pass gambling regulations.
As a result, Nebraska’s gambling landscape has changed rapidly this year with Grand Island Casino as the first to add table games in August and legalized sports betting introduced at Warhorse Casino in November.
Brian Ohorilko, administrator of the Iowa Racing and Gaming Commission also commented on the change, saying, “The Council Bluffs market is down, and I think most people do believe that is attributed to the new facilities opening in Nebraska.”
Iowa’s casino adjusted gross revenue (AGR) was down 6.5% year-on-year in October. Looking more specifically at its top-performing Council Bluffs Ameristar and Horseshoe properties, the 2024 year-to-date report (July-October 2023) shows an AGR for Ameristar of $60.3m vs a total of $62.3m for the previous year, and an AGR for Horseshoe Casino of $62.6m vs $71.9m the previous year.
The overall 2024 fiscal year-to-date AGR for casinos in Iowa is currently $573.8m, down 3.8% from the AGR during the same period in fiscal year 2023. Nebraska’s three casinos (WarHorse in Lincoln, Grand Island Casino and Harrah’s in Columbus) have generated a gross gaming revenue of about $72.1m between January and October 2023.
WarHorse Omaha is currently under construction and set to open in Nebraska during September 2024.
Ohorilko added, “Clearly from an Iowa perspective, the expectation from the commission is for those facilities to put their best foot forward and compete in those markets.”
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