- Nebraska’s casinos are helping the state recoup outstanding debts
- More than $215K in overdue child support has been secured through gambling winnings
Nebraska’s newly liberalized casino market is helping reduce property taxes for homeowners across the Cornhusker State. The racetrack slot machines, table games, and sportsbooks are additionally helping needy kids whose parents are behind on child support payments.
Nebraska voters authorized commercial casino gambling at state-licensed horse racetracks in 2020. Initiative 430 passed easily with 65% support.
The racetrack casinos direct 20% of their gross revenue from slots, tables, and sports to the state. Of the tax money, 70% is allocated to the Property Tax Credit Cash Fund. The casino’s host county collects 25% and the remaining 5% is split between the state’s General Fund and problem gambling programs.
A 2025 revision to Nebraska’s casino law, however, now requires that a player who wins an amount large enough to warrant a handpay with a W-2G IRS tax form have any outstanding debts withheld from their net payout. The stipulation has resulted in more than $500K in debts being paid.
Gambling Pays Down Debts
Known as the Gambling Winnings Setoff for Outstanding Debt Act, the law took effect on Sept. 2, 2025. The regulation requires that the casino payer check the state debt database to determine if the payee has any outstanding debts.
If the player is found to have outstanding obligations, the casino must deduct the amount of the debt owed from their slot, table, or sports bet winnings. The Nebraska Department of Health and Human Services (DDHS) reports that since September, the law has recovered more than half a million dollars from gamblers who had unsettled debts.
Within the first 13 weeks, the program has secured $529,091.47 owed to various state agencies, including the Department of Revenue, Department of Labor, Department of Motor Vehicles, and the DDHS. The bulk of the money, $215,852.98, went to overdue child support.
This program ensures funds are being used to help support kids across Nebraska. Parents have an obligation to their children, and we’re guaranteeing their well-being by collecting these winnings,” said Nebraska Gov. Jim Pillen (R), who signed the Outstanding Debt Act in 2024.
“By administering these dollars directly to families, the Child Support Enforcement Program is setting our state’s children up for success,” added Shannon Grotrian, director of the Office of Economic Assistance. “It’s making an immediate impact on their livelihoods and making sure they have what they need to grow and thrive.”
Property Tax Savings
Casino games aren’t only helping needy children and the state receive some of its outstanding debts. Slot, table, and sports revenue is also paying off for homeowners.
As Casino.org reported in September, a homeowner with a property assessed at $200K received about $250 in property tax savings last year. The deduction is expected to only increase this year, as additional casinos have opened and gaming revenue has climbed.
Nebraska is home to five commercial casinos — WarHorse Casino Lincoln, Grand Island Casino Resort, Harrah’s Columbus NE Racing & Casino, WarHorse Casino Omaha, and Lake Mac Casino Resort.
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