Date published: December 19, 2025, 09:56h.
Last updated: December 19, 2025, 09:56h.
- Casinos in Nebraska are aiding the state in recovering unpaid debts.
- Over $215K in outstanding child support has been retrieved through gambling winnings.
The newly expanded casino landscape in Nebraska is playing a significant role in alleviating property tax burdens for homeowners throughout the state. Additionally, racetrack slot machines, table games, and sportsbooks are benefiting underprivileged children whose parents have fallen behind on child support obligations.
In 2020, Nebraska voters approved commercial casino gambling at state-sanctioned horse racetracks, with Initiative 430 receiving 65% approval.
The racetrack casinos are required to contribute 20% of their gross revenue from slot machines, table games, and sports betting to the state. Of this, 70% is directed to the Property Tax Credit Cash Fund, while the hosting county retains 25%. The remaining 5% is shared between the state’s General Fund and programs addressing problem gambling.
Recent amendments to Nebraska’s casino regulations now stipulate that players winning amounts sufficient to necessitate a handpay via W-2G IRS form will have any outstanding debts deducted from their winnings. This change has led to the payment of more than $500K in debts.
Gambling Programs Address Debt
Dubbed the Gambling Winnings Setoff for Outstanding Debt Act, this measure became effective on September 2, 2025. It mandates that casinos check the state’s debt database to confirm whether a winner has any unpaid debts.
If any liabilities are identified, the casino must subtract the debt amount from the player’s gambling winnings. Since the law’s inception, the Nebraska Department of Health and Human Services (DDHS) reports that over half a million dollars has been recovered from gamblers with outstanding debts.
In just the first 13 weeks, the initiative has retrieved $529,091.47 owed to several state entities, including the Department of Revenue, Department of Labor, Department of Motor Vehicles, and DDHS. Notably, $215,852.98 of this amount has been allocated to overdue child support.
“This initiative maximizes funds to support children throughout Nebraska. Parents bear a responsibility towards their children, and we are ensuring their welfare by reclaiming these winnings,” remarked Nebraska Governor Jim Pillen (R), who endorsed the Outstanding Debt Act in 2024.
“By directly channeling these funds to families, the Child Support Enforcement Program is paving the way for a brighter future for our children,” added Shannon Grotrian, director of the Office of Economic Assistance. “This is making an immediate positive impact on their lives, ensuring they have the resources necessary to thrive.”
Impact on Property Taxes
The casino industry is not only benefitting the children in need but is also facilitating debt recovery for the state. Moreover, the revenues from slot machines, table games, and sports betting are translating into advantages for homeowners.
According to Casino.org, a homeowner with property valued at $200K received approximately $250 in property tax benefits last year. This deduction is poised to increase this year as more casinos have launched and gaming revenues rise.
Nebraska boasts five commercial casinos: WarHorse Casino Lincoln, Grand Island Casino Resort, Harrah’s Columbus NE Racing & Casino, WarHorse Casino Omaha, and Lake Mac Casino Resort.