An amended bill that would tighten and add some regulations to Nebraska’s skills games industry has cleared the first round of consideration in the Legislature.
Among other provisions, LB685 would place a five percent tax on the net revenues coming from the games, and any establishment with them would have to get at least 60 percent of their gross revenue from other business lines.
North Platte Sen. Mike Jacobson thought that latter provision was important to work toward elimination of stand-alone skill games businesses. “Right now, it’s been the Wild West, and that’s what we’ve gotten. Because the western part of the state’s been shut out of having a casino and a racetrack, we’re getting these games of skill instead,” said Jacobson. “They are becoming drug magnets, where you’re finding law enforcement’s being called to some of these facilities at 3:00 in the morning because they’re running 24/7/365, no one manning those facilities. So it’s a place for drug dealers to go up for drug users, and it’s becoming a real problem.”
The current annual Revenue Department $250 per machine permit charged to operators would not change, but additional provisions include either one-time or annual fees for manufacturers and distributors of the machines.
Proceeds from the net skill games revenue tax would be split among various funds, including 40 percent to the Property Tax Credit Cash Fund, 20 percent to the Charitable Gaming Operations fund for enforcement and records maintenance, and 10 percent to the Nebraska tourism Commission Promotional Cash Fund. In addition, 25 percent would be sent to the county in which the machines are located, to be split evenly between the county and city or village.
The other amended portion of the measure would place regulations on the location and display of co-branded alcoholic and non-alcoholic beverages, which would be dependent among other things on the size of a retail establishment.
The amended bill ultimately gained 31 votes with no opposition to advance from General File.
