New Nebraska Casino: Groundbreaking in South Sioux City Imminent

A new wind is blowing through the gaming industry in Nebraska. WarHorse Gaming, a subsidiary of Ho-Chunk, Inc., is currently preparing for the groundbreaking of an ambitious casino project in South Sioux City. The plans involve building a modern gaming facility directly adjacent to the existing Atokad racetrack, which is intended not only to attract casino fans but also to financially secure the sport of horse racing. The location on G Street, south of Interstate 129, has already proven itself in its second year at its new site, but only the planned casino will bring the decisive economic breakthrough.

Ho-Chunk CEO Lance Morgan makes no secret of the fact that the current operation of the racetrack is only the first step. They are currently meeting the necessary criteria to hold the licenses, but the true vision lies in the future. A casino provides the financial basis to make the entire surrounding area more grand and to sustainably improve the infrastructure. It is about creating an experience that goes beyond mere racing and puts Nebraska on the map as a gaming destination.

Numbers and facts

The dimensions of the WarHorse Gaming projects are impressive. While the groundbreaking is imminent in South Sioux City, other locations in Nebraska are already further along. In Lincoln, for example, a complex is being built that will feature a 9,000-square-foot gaming floor in its first phase. There, 445 slot machines, sports betting kiosks, and opportunities for live racing and simulcast betting will be created. A second phase even plans for a 200-room hotel, an event center, and a steakhouse, which could bring up to 900 new jobs to the city.

In Omaha, the plans are even larger. A facility with more than 1,200 gaming machines and numerous gaming tables is to be built there. The area for renovations and new construction covers nearly 67,000 square feet. Since regulatory hurdles and the fee structures of the gaming commission took time, some projects were delayed, but the goal remains clear: the money should stay in the state of Nebraska and not flow to neighboring states.

Background

The origin of this massive expansion lies in November 2020. At that time, the citizens of Nebraska voted in a referendum for a constitutional amendment allowing casino games at the state's licensed horse racetracks. This affects a total of six locations, including Lincoln, Omaha, and South Sioux City. It was a long road through bureaucratic instances for the operators until the first excavators could roll.

"It’s been a long road getting here since the voters approved the initiatives back in 2020, but we’re very excited for all the opportunities WarHorse Lincoln will bring to the community and look forward to delivering on our promise of keeping the money in Nebraska." - Lance Morgan, CEO of Ho-Chunk, Inc.

The strategy of opening temporary gaming facilities while permanent buildings are being constructed has proven successful. In Lincoln, operations were able to start in a preliminary framework shortly after the groundbreaking. A similar temporary solution with about 800 machines is also planned for Omaha to bridge the wait time of up to 18 months for the construction of the main building.

Why it matters for German players

For German players, these developments in the USA have no direct impact on their daily gaming pleasure but serve as an interesting comparison. In Germany, the Interstate Treaty on Gambling 2021 (GlüStV 2021) is the measure of all things. While Nebraska is investing heavily in land-based large-scale projects at racetracks, the focus in this country is heavily on regulating the online market through the Joint Gambling Authority of the States (GGL). German players must adhere to strict limits, such as the cross-provider deposit limit of 1,000 euros per month, monitored via the LUGAS system. In addition, a stake limit of a maximum of 1 euro per spin applies to virtual slot machines. Such strict player protection limits are often less restrictive in the USA, making the market there particularly lucrative for operators. Anyone wanting to play safely in Germany should always check the official GGL whitelist, as only there is legal and controlled gambling guaranteed.

What it means for GGL-licensed casinos

German casinos with a GGL license operate in a completely different regulatory environment than the new US casinos. While WarHorse Gaming relies on the combination of sports, gastronomy, and gambling, German online providers focus on technological security and prevention. However, the Nebraska example shows how important a clear legal basis is for market growth. Legal certainty has prevailed there since 2020, similar to what the GlüStV 2021 was intended to create in Germany. Providers in Germany can learn from such international developments that diversification and building a strong brand are crucial to holding their own against the black market, such as unregulated MGA or Curacao providers.