COLUMBUS, Neb. — State Sen. Paul Schumacher may try his luck with a bill that puts casino gambling back on the ballot.
The Columbus attorney said he is considering sponsoring an amendment next session that would give the Legislature authority to legalize casino-style gambling in Nebraska.
"Right now we don't have any options on it," Schumacher said. "You can't do it, can't even discuss it, and considerable revenue continues to leave the state."
Any legislation brought forward by the first-term senator would give Nebraska voters the final say on the matter. A ballot item needs majority support before the Legislature can consider increased gambling.
While Schumacher understands this topic has been a controversial one in the past, he believes the state can't afford to continue passing tax dollars to its neighbors.
"If we're short on money, right now that money is going to Iowa and South Dakota," Schumacher said.
The District 22 representative estimates Nebraska could realize an additional $60 million to $120 million in tax revenue through casino gambling — funding that would go a long way in the cash-strapped state.
Lawmakers were forced to make significant cuts last session to address a two-year budget shortfall, and Schumacher expects some of those financial woes to carry into the 60-day session beginning Wednesday.
For those states that are luring Nebraska players, the casinos, video gambling and slot machines have been lucrative.
In Iowa, casinos took in more than $1.3 billion during the fiscal year ending June 30.
Taxes and fees on this revenue generated $267 million for the state's general fund and provided financial support for special endowments in counties and cities where the casinos are located.
South Dakota gambling grossed $102.5 million over that time, contributing $16.5 million to the state, the city of Deadwood and other communities and school districts in Lawrence County.
About $70 million of this tax revenue comes from Nebraska gamblers, who lose around $300 million in out-of-state casinos annually, Schumacher estimated.
"That's money that we have to make up in taxes here," he said.
Schumacher said casinos also generate significant private revenue and don't pose a threat to current Nebraska gambling options, such as live and simulcast horse racing and keno, which the lawmaker helped establish in the 1990s through his company, Community Lottery Systems Inc.
Video gambling machines have helped racetracks survive in other states, Schumacher said, and casinos likely wouldn't detract from the small-town draw of keno, approved by voters in more than 100 communities and counties, raising millions of dollars.
"In all probability if you did casino gaming, the big casino would be in Omaha, and there's big casinos in Omaha now," he said, referring to the three casinos just across the Missouri River, in Council Bluffs.
Schumacher said the number and location of casinos is something that would need to be discussed if a ballot initiative were passed.
Nebraska has been down that road before.
Following a petition drive in 2004, four pro-gambling measures were placed on the state ballot, along with a legislative proposal authorizing two casinos in the state.
Because of technicalities, Schumacher said, all four petition-driven measures needed to be passed for the proposal to move forward, which complicated the process.
"There probably was more than 50 percent of the people who voted yes, but they couldn't decide on which proposal," he said.
Voters defeated both the legislative and petition-created proposals.
However, Schumacher believes the odds are better this time around.
"I think that it would make a very close proposition on the ballot," he said.
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