Election: Casino games could help Nebraska racetracks; expanded gaming in Virginia could hurt Colonial Downs

Voters in Nebraska on Tuesday approved a referendum allowing racetracks in the state to operate casino-type games, while voters in Virginia approved casinos in four locations that will now offer competition for the state’s recently resurrected horse track, Colonial Downs.

The Nebraska referendum will allow six tracks in the state to open casinos. Supporters of the measure have said that subsidies from the casino operations could lead to a doubling of the number of race dates in the state. In 2020, Nebraska tracks ran 53 live race dates.

:: Click to learn about our DRF's Free Past Performance program.

In Virginia, casinos were authorized at four locations in the state, potentially threatening the monopoly on casino-type gambling currently held by the owners and operators of Colonial Downs. Colonial Downs reopened in 2019 after the owners were given the green light by state legislators to operate slot machine-like devices at the track and 10 of its offtrack betting locations.

Colonial Downs is located in New Kent County, a largely rural area. The casinos were approved by voters in Bristol, Danville, Norfolk, and Portsmouth.

Voters in three other states, Maryland, Louisiana, and South Dakota, legalized sports betting. The referenda in Maryland and Louisiana asked voters whether they approved of sports betting, and legislation will still need to be crafted to determine how licenses will be awarded.

Racetracks and horsemen in Maryland and Louisiana currently receive large subsidies from casino operations in the state, and owners of the tracks have previously said that they will lobby for tracks to get authorization to offer sports betting.