The money being made from casinos in Nebraska is having a ripple effect across the Cornhusker State.
A state audit pointed out a significant shift in Nebraska's gambling landscape. Nebraska Lottery sales took a nosedive while casino gambling revenue saw impressive growth.
Here’s a breakdown of what’s happening.
Nebraska Lottery’s Financial Decline
For the fiscal year ending in July 2025, Nebraska Lottery sales dropped by more than $36 million, a 16.3% decline from the previous year. Total lottery sales were around $189 million, down from roughly $224.6 million. Let's look at the details:
- Scratch Ticket Sales: Fell by 9.5%, decreasing by $10.5 million.
- Lotto Game Sales: Including Powerball and Mega Millions, dropped by 23.2%, accounting for a $25.6 million loss.
One main factor was fewer large Powerball jackpots compared to 2024, leading to a $21.9 million loss in revenue.
This decline resulted in a $10 million reduction in funds for state programs such as the Nebraska Environmental Trust, education, the State Fair, and the Compulsive Gamblers Assistance Fund.
State Auditor Mike Foley pointed to growing competition from Nebraska's emerging casino market and online gambling as significant factors pulling players away from the lottery.
The rise of instant-win machines in convenience stores also pressured scratch ticket sales. Additionally, price hikes, like Mega Ball's increase to $5, dampened enthusiasm.
The Rise of Nebraska Casino Revenue
Nebraska's casino revenue has soared since the first commercial casinos opened in 2022, following the 2020 constitutional amendment legalizing them. Here are some key figures:
- 2024 Casino Revenue: Just under $146 million.
- 2025 Mid-Year Revenue: By July 2025, casinos had nearly matched 2024's full-year earnings with $142 million.
According to data from the Nebraska Racing and Gaming Commission, August was a particularly strong month, with casino revenue jumping 48.8% year-over-year to $23.6 million. Major casinos, such as WarHorse Casino in Omaha and Lincoln, experienced significant income boosts.
Slot machines remain the biggest earners, with table games and sports betting gaining traction. In May 2025 alone, the state collected over $4.8 million in gaming taxes, primarily allocated to property tax relief.
Impact of the Nebraska Lottery Revenue Drop on Beneficiaries
When the Nebraska Lottery doesn't make as much money, it affects groups that rely on lottery funds.
The Nebraska Environmental Trust gets all its money from the lottery. With less money coming in, executive director Holly Adams says they'll have to give out fewer grants. These grants help protect wildlife and improve air, water, and soil quality.
About 40% of the Nebraska State Fair's budget comes from lottery money. Executive Director Jaime Parr says a big part of this money is used to fix and improve the fairgrounds. With less funding, there could be fewer improvements.
Every November, the groups that receive funding from the Nebraska Lottery meet to find out how much they can expect. Parr told Nebraska Public Media that this helps them plan for a year with less money and make changes to their budget.
Short-Term and Future Outlook
There was a brief bounce-back for the lottery thanks to a massive Powerball jackpot of $1.787 billion in September. However, Foley warned that such increases might be fleeting amidst growing casino popularity.
To adapt, the Nebraska Lottery’s leadership is considering strategy shifts to better engage players. Meanwhile, the state's casino market is flourishing, drawing substantial in-state spending as new facilities open and gambling options expand.
As the gambling scene in Nebraska evolves, traditional lottery games face ongoing challenges from emerging and innovative gaming forms. The future will reveal how these dynamics continue to shape the state’s gambling revenue landscape.
