Nebraska’s RGC comes under fire over state’s casino taxes

Nebraska’s Racing and Gaming Commission has come under the microscope over its handling of the state’s casino taxes. A report was filed by Mike Foley, Nebraska’s State Auditor, who has leveled criticism at the Commission for falling short in verifying tax information and ensuring the correct amount of money was collected after putting out an audit report. Foley suggested that the Commission’s oversight was “lackluster”, and even at times, “non-existent.”

Audit findings and discrepancies:

• The audit covered the most recent fiscal year up until June 30, during which 4 licensed casinos collectively contributed $20 million in tax revenue for property tax credits.

• WarHorse Casino in Lincoln underpaid taxes by $279,064, while Harrah’s in Columbus overpaid by $76,184.

• The report criticized the Commission for not resolving these mismatches prior to the auditor’s investigation.

Oversight and operational concerns:

• Foley noted that Commission members did not provide sufficient justification for the reported taxes, raising doubts about the agency’s capability to calculate correct amounts.

• Recommendations include passing responsibility for tax collection directly to the auditor’s office to ensure greater accuracy and accountability.

• Commission director Casey Ricketts acknowledged that staffing shortages contributed to the agency’s insufficient oversight.

Additional issues highlighted by the audit:

• The report uncovered instances of Commission employees misusing state vehicles.

• Lack of stringent internal procedures was identified as a key factor in the agency’s failings.

• Strengthening measures are being considered to safeguard the proper transfer and collection of taxes.

The Nebraska Racing and Gaming Commission must address these deficiencies to restore confidence from the auditor’s office and ensure proper management of casino tax revenue moving forward.