WarHorse Lincoln hits one year anniversary – Lincoln Journal Star

Ken Mallory (left), a member of the Nebraska Winnebago Tribe's Tribal Council, and Dave Anderson, vice president of the Nebraska Horsemen's Benevolent and Protective Association, place the first legal sports bets at WarHorse Casino in Lincoln in June.

WarHorse Lincoln is a work in progress, an endeavor that has only scratched the surface of its potential, its ownership group says.

"It's really going to be something," says Lance Morgan, CEO of Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska that operates the casino.

But for now,the casino is currently being housed in a smaller building, while beyond the parking lot is a construction zone that will someday house a larger, 48,000-square-foot permanent casino, hotel and horse racing track.

The dirt work has begun on phase two, which will double the size of the existing casino by October 2024. Meanwhile, work continues on Legacy Downs at WarHorse, a seven-eighths of a mile horse track that is set to be ready in the spring.

And phase three the addition of the hotel and more casino space, restaurants and lounges and an expanded sports book in the coming years, will make WarHorse Lincoln a destination, Morgan says.

All that said, Nebraska's first state-sanctioned casino has found its way in its first year of operation, but those intimately involved say it's nothing compared to where it will be in the coming years.

"I think that you have to think about this as a little bit of a process," Morgan said.

But everything suggests that the first year even with abbreviated service and amenities has been nothing short of successful.

"It has really exceeded our expectations in atmosphere and what we're able to provide," said Lynne McNally, CEO of the Nebraska Horsemen. "This is just the first phase of a multi-phase project. So we have a very small space to work with right now, but we're already looking towards the future."

Financially, WarHorse Lincoln has contributed more than $4.7 million to a property tax credit cash fund this year through August, while also providing more than $845,000 each to the city of Lincoln and Lancaster County coffers.

"I think everybody said, 'Wow, that's a lot of money,'" said Tom Sage,executive director of the Nebraska Racing and Gaming Commission, which regulates the state's casinos. "But, I don't know what the expectations were. ...I had no expectations, and I don't believe the commission had any expectations."

It's lived up to the projections, Morgan said, and done so without causing many of the problems opponents claimed it would.

"I think it's great, contributing to the property tax and the general funds for the county and city and the problem-gaming fund," Sage said. "I think it's very good, and it probably will only get better when the permanent facilities become operational."

Lance Morgan (from left) of Ho-Chunk celebrates receiving the first provision casino licenses issued in Nebraska with Tom Sage, executive director of the Nebraska Racing and Gaming Commission, and Lynne McNally, executive director of the Nebraska Horsemen's Benevolent and Protective Association.

And that's all part of the process.

McNally said she worried at the start that a smaller WarHorse might not suit the needs of Lincoln.

"I think that we've made up for it in customer-service experience," McNally said. "I've been really encouraged by the fact that our customers seem to understand that this is temporary."

In a perfect world, there wouldn't have been three phases to the WarHorse project. Originally, the entire casino resort, hotel and all, was supposed to be complete by the end of 2024. But rising costs in financing the project dictated that it be divided, McNally said.

"The interest rates were kind of out of control," she said."It made more sense to go in phases."

"I don't think it's going to be that big of a deal," Morgan said. "But when you're starting a new casino, the interest rates are really high already in a high interest-rate environment. So it just made sense to break it up into pieces."

The finished product which WarHorse officials did not give an estimated date forwill cause across-the-board revenue increases, said Morgan, who pointed to the addition of table games in the coming year.

"A sports bettor is more likely to play blackjack than to play the slot machines," he said.

Morgan said the bigger boon for the casino might come if the Nebraska Legislature eventually approves mobile betting, which would allow a sports wager to be made from anywhere in the state.

Tom Sage, executive director of the Nebraska Racing and Gaming Commission, speaks to patrons as the first sports wagers are placed at WarHorse Casino on June 22.

When Iowa went to mobile betting, its revenues increased "by tenfold," Morgan said.

But mobile betting does have its pitfalls, as the state of Iowa has learned this year with the arrest of 15 student athletes at Iowa and Iowa State universities, the majority of whom are accused of betting of games in which they played.

Morgan said that "everything we do is to protect the integrity of gaming," and that closer oversight of the process is needed to prevent scandals.

"It seems to me that if you open an account in Iowa you're going to have an address and you've got to have an ID," he said. "There are multiple verification steps involved in any system or you could have some abuse, I suspect."

He said that Nebraska would learn from the mishaps in Iowa.

"I think the online version is going to be a big deal," Morgan said. "Obviously, the state is concerned about making sure that everything is regulated.

"They're all about protecting the integrity of gaming and so are we."

WarHorse Lincoln opens to the public on Sept. 24, 2022.

Tribal Elder and member of the Nebraska Winnebago Tribe's Tribal Council Ken Mallory (left) and Wally Wollesen officially play the first games at WarHorse Casino's opening in Lincoln on Sept. 24.

People line up Saturday morning, Sept. 24, 2022 at the entrance to WarHorse Lincoln, the first state-licensed casino to open.

People line upSaturday, Sept. 24, 2022, at the entrance to WarHorse Lincoln, the first state-licensed casino to open.

Tribal Elder Ken Mallory of the Winnebago Tribe of Nebraska (left) and Wally Wollesen of the Nebraska Horsemen's and Benevolent Association officially play the first games at WarHorse Casino on Saturday, Sept. 24, 2022.

Tribal Elder Ken Mallory of the Winnebago Tribe of Nebraska (left) and Wally Wollesen of the Nebraska Horsemen's and Benevolent Association officially play the first games at WarHorse Casino on Saturday.

Tribal Elder and member of the Nebraska Winnebago Tribe's Tribal Council Ken Mallory officially pulls the casino's first slot machine during the opening ceremony for first state licensed Casino on Saturday, Sept. 24, 2022, at WarHorse Casino.

WarHorse Lincoln has placed 51 slot machines in a separate smoking "room" that qualifies as an outdoor space because it is not completely enclosed.

Dirt work continues at Lincoln Race Course, where WarHorse Lincoln is preparing to build a casino resort complex with construction extending into 2024.

The temporary casino at WarHorse Lincoln will have 433 slot machines, while still leaving space dedicated for betting on simulcast horse races.

WarHorse Lincoln is the state's first licensed casino.

Dirt work continues at Lincoln Race Course, where WarHorse Lincoln is preparing to build a casino resort complex with construction extending into 2024.

Slot machines are seen at the temporary casino at WarHorse Lincoln, Tuesday, Sept. 20, 2022, at Lincoln Race Course.

Slot machines are seen at the temporary casino at WarHorse Lincoln, Tuesday, Sept. 20, 2022, at Lincoln Race Course.

On Saturday, gamblers will walk into the temporary casino at WarHorse Lincoln for the first time.

The temporary casino at WarHorse Lincoln includes a dedicated space for those wagering on simulcast horse races.

Slot machines at WarHorse Lincoln opened to the public on Saturday, Sept. 24, 2022.

Horse race simulcasting screens are seen at the temporary casino at WarHorse Lincoln is seen on Tuesday, Sept. 20, 2022, at Lincoln Race Course.

Betting kiosks for simulcast wagers are spaced out throughout the temporary casino at WarHorse Lincoln.

Slot machines at WarHorse Lincoln.

Reach the writer at 402-473-7391 or psangimino@journalstar.com

On Twitter @psangimino

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WarHorse Lincoln hits one year anniversary - Lincoln Journal Star