Vegas casinos have stake in expanded gambling

As most of us are keenly aware, casino gambling is already in our midst. Two riverboat casinos have been in operation on the Iowa side of the river within view of downtown Omaha for several years. Bluffs Run Casino, that offers slot machine gambling and dog racing, has been around even longer. It is also a well known fact that the majority of cars parked in any lot associated with these businesses bare Nebraska license plates.

Nebraska law does allow horse racing and keno parlors already so this issue seems like a no-brainer. Why not keep the money that flows across the river every day in Nebraska?

It's true that the petition drive that finally placed this issue on the ballot was backed at least in part by folks who make their living in Las Vegas and have a strong desire to expand their business in our state but at least we can finally have an opportunity to vote on it.

Two separate proposals will be on the November 2nd ballot. Each is endorsed and backed by a Vegas casino. The Venetian is the leading backer of Amendment 3 which was placed on the ballot by Legislature. Coast Casinos support Initiatives 417, 418, 419 & 420, also known as 'Keep the Money in Nebraska'.

In order to have a better understanding of these two proposals, we are publishing them both.

AMENDMENT 3

1.	It allows Nebraska to bring back the $300-plus million currently wagered by Nebraskans at Iowa casinos in our state.
2.	Amendment 3 requires a vote of the people in a community before gaming is allowed in their town.
3.	Amendment 3 encourages economic investment in our state which would create over 2,000 construction jobs and 1,200 new, permanent tourism jobs once casinos are operating.
4.	Amendment 3 provides the best opportunity to bring a destination resort-casino to Nebraska, which studies show is the best way to maximize revenue for the state to create economic development.
5.	Amendment 3 provides strict gaming oversight by the Legislature and a state gaming commission.
6.	Amendment 3 keeps gaming limited to just two locations.

KEEP THE MONEY IN NEBRASKA

Initiative 417 is a short proposed amendment to the state constitution clarifying that the limitations on the Legislature regarding gaming do not apply to the people when they invoke the power of Initiative. It states people have the right to provide for the authorization, operation, taxation and regulation of gaming by initiative. It is a bi-directional power under which the people may authorize gaming or under which they may restrict and tax gaming otherwise authorized by the Legislature.

Initiative 418 is short proposed amendment to the state constitution that requires a 2/3 vote of the Legislature to repeal or change any law enacted by Initiative. It will apply to any future statute adopted by the Initiative process. Currently the will of the people expressed in statute adopted by Initiative can be undone by the Legislature with a simple 25 vote majority. That is inadequate when compared to the 30 votes needed to override a simple Governor's veto and the 33 votes the Legislature requires of itself to end a filibuster. This Proposition uses an equal 33 vote standard for the Legislature to interfere with the will of the people.

Initiative 419 is a proposed statute that would impose fees and high taxes with the proceeds divided between Nebraska communities and the state's general fund. The tax rates set in Section 2 are the principal public revenue generation device. The taxes are very high, considerably higher than Iowa, for example. Following long standing precedent set by the Unicameral, the measure relies on taxes on gaming rather than fees to raise the public revenue. Because Proposition Four is only a statute and not a Constitutional Amendment, it is amendable by the Legislature by a 25 vote majority in response to changing circumstances (33 votes should the people adopt Initiative 418). This proposition does not limit the local government's ability to use additional mechanisms such as occupation taxes.

Initiative 420 is a proposed statute that would permit communities to authorize games of chance and to provide for regulation by a gaming commission. This proposal reflects the strong role local government interests played in framing the petitions and places strong emphasis on local control and decision making. Because Proposition Three is only a statute and not a Constitutional Amendment, it is amendable by the Legislature by a 25 vote majority in response to changing circumstances (33 votes should the people adopt Initiative 418).

Keep the Money in Nebraska's plan provides a responsible gaming package limited to:

* Two casinos near the Omaha riverfront.

* Fewer than 4,900 other gaming machines are allocated to local governments statewide by a population based formula. Those may be placed by the local government at race tracks, strategic locations, or in a limited form, at some establishments serving alcohol. (For purposes of comparison, Iowa has authorized 4,200 machines within the city limits of Council Bluffs alone.)
In every case, local governments use local control to determine whether or not to allow gaming in their community.

It is estimated that this gaming package could generate from 100 to 150 million dollars in revenue for local communities and the State of Nebraska every year!

Keeping in mind that neither of these proposals have been voted on yet, where will the casinos be located?

Coast Casinos has an option to buy 38 acres of land north of Omaha's riverfront along Abbott


	Coast Casinos has an option to buy 38 acres of land north of Omaha's riverfront.

Drive. Their vision is to include a 500-room hotel that would resemble the Suncoast Hotel and Casino in Las Vegas.

The Venetian has no purchase option but is considering city-owned land at 10th and Cass Streets, currently parking lots for visitors at the Qwest Center. They have also mentioned the possibility of buying the Hilton Omaha and adding skywalks to both the hotel and the Qwest Center. This would relieve the city of paying back $106 million in revenue bonds used to build the hotel. They envision the exterior design of the casino to be modern Milan with lots of glass and the interior resembling old Italy Florence.

The Lund Company of Omaha has also pitched two large properties near downtown as possible


	The Venetian Casino's exterior design would reflect modern Milan with lots of glass and the interior resembling old Italy Florence.

casino sites. One which is owned by Union Pacific is north of the intersection of Abbott and 10th Street. The other is near 4th and Pierce Streets.

Amendment 3, which allows the Legislature to decide where the casinos will be located, has many people speculating that one casino be built in Omaha and another possibly in the Grand Island-Hastings-Kearney area.

Irregardless of how you personally feel about legalized gambling, it is considered a form of entertainment to many people. If you are not already crossing the river to the casinos, visiting the race track or playing a game of keno now and then, passing a law in Nebraska to include casino gaming will probably not adversely affect you. It could, however, offer everyone living in the state some tax relief, add additional revenue to the state and offer new job opportunities.

October 6, 2004

Vegas casinos have stake in expanded gambling