Nebraska has as many Thoroughbred racetracks as Kentucky, the US horse racing capitol

Nebraska has five licensed Thoroughbred tracks open or under construction, the same number of Thoroughbred tracks as Kentucky.

In addition, Nebraska has more Thoroughbred tracks than any other state except California, according to a consultant hired by the Nebraska Racing and Gaming Commission to study the state’s horse racing market.

Some Nebraskans say the state’s five Thoroughbred tracks, plus one quarter horse track, are more than enough. Others are eager to open new tracks and cash in on Nebraska’s law that allows casinos, but only if paired with racetracks.

A new market study says there are reasons for stopping at five Thoroughbred tracks. The study suggests, however, that Nebraska may have room for additional tracks for quarter horses.

While Kentucky and Nebraska may have the same number of tracks, that’s where the comparison ends.

Kentucky is the racing capital of the United States, raising thousands of Thoroughbreds a year and hosting the Kentucky Derby at Churchill Downs. Kentucky has nearly four times as many racing days and more horses per race. The average purse for winners in Kentucky is more than 13 times the Nebraska average, according to data from a national racing clearinghouse.

In addition, Kentucky is responsible for about 41% of the Thoroughbred foals born annually in North America, while Nebraska produces fewer than 1%, the Jockey Club data says.

Nebraska is attempting to revive a once-vibrant racing industry, an effort kickstarted by the 2020 vote allowing casinos at racetracks. Nebraska horsemen and breeders, aided by casino revenue, aim to create a state racing circuit with a nearly seamless Thoroughbred racing season from late winter through fall.

Currently, only two Nebraska tracks — Fonner Park in Grand Island and Harrah’s Columbus Racing and Casino in Columbus — have scheduled significant race days this year: 31 at Fonner and 15 at Columbus. Combined, the other three Thoroughbred tracks are planning just seven days of racing.

State law requires the tracks to ramp up their racing in the coming years.

The market study by The Innovation Group of New Orleans suggests that Nebraska’s five tracks may be plenty for a Thoroughbred circuit. It says that awarding a sixth Thoroughbred license “would run the risk of diluting field sizes to unviable levels.” Field size refers to the number of horses in a single race.

Already, the study says, Nebraska faces a challenge supplying enough Thoroughbreds to meet projected needs as the number of race days and races is required to increase in the future.

“There would be further challenge,” it says, “of fitting a sixth meet into the state racing calendar.”

But the study indicates that Nebraska should have enough quarter horses to eventually support three quarter horse tracks if certain conditions are met. Already, it says, Nebraska’s population of nearly 80,000 quarter horses larger than Iowa and New Mexico, states with significant quarter horse racing industries.

Thoroughbreds race long distances, requiring speed and stamina in races that can extend a mile or more. Quarter horses sprint distances of 220 to 870 yards.

Nebraska’s breeding and training infrastructure for racing must develop, the study says, and purse awards and breeding funds must be competitive with other racetracks in the region, including Prairie Meadows in Iowa and the tracks in Wyoming.

Hastings Exposition and Racing is seeking commission approval to transfer its quarter horse racing license to Ogallala for the proposed Lake Mac Casino Resort & Racetrack. It would be developed on a 174-acre site south of Interstate 80 and west of the city. Hastings Exposition and Racing is partnering with Elite Casino Resorts on the project.

At the commission’s June 14 meeting, the panel delayed approval of the transfer and asked for more information on the business relationships between the parties that will run the casino and track.

Other quarter horse tracks include one proposed in Gering, about 110 miles northwest of Ogallala, and another in Bellevue, just south of Omaha.

New racetracks and casinos also have been proposed in five other communities: Norfolk, York, North Platte, Kimball and Fremont.

Promoters of the Bellevue project say the study supports their case for the proposed Belle Vue Downs racetrack, which they believe would complement their proposed regional water park and could pull gambling revenues from Council Bluffs.

But while the study says a Bellevue quarter horse track would likely have no effect on existing Thoroughbred tracks in Nebraska, a Bellevue casino would impact Nebraska casinos — particularly gaming revenue at the WarHorse casinos in Omaha and Lincoln. In turn, that would reduce the amount of money that those casino’s related tracks — Horsemen’s Park in Omaha and Legacy Downs in Lincoln — could spend on Thoroughbred purses and breeding awards.

Under state law, the commission must deny licenses for racing or a casino if approval would be “detrimental to the racing or gaming market that exists.”

The study will help guide commissioners as they consider applications for new racing licenses, said Denny Lee, chairman of the state panel.

“It’s not the gospel,” Lee said. “It’s subjective. It’s part of the puzzle.”

Lee noted that the study remains “more speculative than factual” because some of the already-approved casinos and race tracks are still under construction and not fully operational.

State lawmakers had required the commission to obtain the study prior to Jan. 1, 2025.

Until now, Lee said, the commission has been focusing on the six existing racetrack license holders. The commission is developing a new application form for racing licenses and will likely begin considering applications for new tracks next fall, Lee said.

He said he anticipates the new application will seek more information about the nonprofit organization applying, such as when it was formed, its board of directors and the manager and operational staff.

Pat Loontjer, executive director with the Nebraska anti-gambling group Gambling with the Good Life, said six racetrack-casinos are “more than enough for Nebraska, for our population.”

Loontjer said she doesn’t believe voters who approved expanded gambling intended for a slew of new casinos beyond those six.

“They were even selling it like only six, only six,” she said. “Now there’s seven more waiting in the wings.”