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Nebraska’s horse racing industry has been in long-term decline for decades, marked by the closure of once-prominent venues such as Ak-Sar-Ben in Omaha, which ranked among the top 10 racetracks nationally in 1983 before shutting down in 1995. But in 2026, industry stakeholders say casino gaming revenue and breeder incentive programs are helping stabilize and modestly revive the sport.
Since Nebraska authorized casino gambling in 2022, gaming revenue has steadily increased, with the state’s five casinos generating about $261 million in 2025, according to the Nebraska Racing and Gaming Commission. A portion of that revenue is now being directed into racing purses and breeding programs, reshaping the financial outlook for horse racing.
Nevada casino revenue reshapes racing, boosts purses
At Fonner Park in Grand Island and other Nebraska tracks, casino partnerships have become a key driver of purse growth and breeder incentives. Under agreements with Grand Island Casino & Resort, a share of casino revenue is allocated to horsemen and Nebraska-bred programs, increasing payouts and improving participation incentives.
Breeders say the added funding is helping offset years of thin margins in the industry.
“My mom and sister have been in thoroughbred breeding for probably 20 to 25 years, and there are a lot of years where you have to have a really good horse just to break even,” said breeder Pat O’Neill. “Now you’re getting to the point where a decent horse not only makes it easier to find races, but you can actually make money at those races.”
Veteran breeder Margaret Landis, with more than 40 years in the industry, said Nebraska’s breeding program is gaining momentum.
“We never gave up,” Landis said. “The breeding program in Nebraska is really taking off. We can thank Fonner Park and the casino because they’re funding the breeders. It’s really helping, and we’re getting more Nebraska-bred races than we’ve ever had before.”
Revenue structure varies across Nebraska’s tracks
Nebraska law requires 1% of total pari-mutuel wagering handle to be directed to the Nebraska Thoroughbred Breeders Association. Beyond that, funding structures vary depending on individual casino and track agreements.
At Fonner Park, CEO Chris Kotulak said roughly half of casino-related revenue tied to its agreement with Grand Island Casino & Resort flows back into the racing ecosystem.
“Eighty percent goes to purse money or the Horsemen’s Benevolent and Protective Association, and the other 20% goes to the Nebraska Thoroughbred Breeders Association to use for purse money or breeders’ awards,” Kotulak said in a Nebraska Public Media news post.
He said the state still lacks a fully developed breeding infrastructure and needs more coordinated investment to sustain long-term growth. “Somehow they need to figure out a way to develop the infrastructure for Nebraska thoroughbred racehorse breeding,” he said.
Kotulak also said future gaming expansion, including potential sports wagering, should include direct support for horse racing.
“If there is going to be a proliferation of sports gaming, then I’m only an advocate for it if we can get something tied into the thoroughbred horse racing industry,” he said.
Live horse racing activity up, wagering still uneven
Live racing activity has increased since the early 2020s, though race schedules continue to fluctuate year to year. According to the Nebraska Racing and Gaming Commission, live race days are well above post-pandemic lows, and tracks are running more races per card even when total dates vary.
“We went from very limited racing to four race days in 2024, up to 15 in 2025. This year we’re running 11, but we’re running more races per day,” said Lori Thomas, who manages Legacy Downs in Lincoln and Horsemen’s Park in Omaha.
Thomas said wagering at live meets has improved in some periods, but broader trends remain mixed.
Despite casino-driven growth in the state’s gaming sector, horse racing wagering has not returned to pre-2018 levels. In 2025, total in-state handle was just under $41 million, down more than 35% from 2018, according to commission data. Bettors continue to wager more on out-of-state races than on local events.
Horse racing’s future tied to gaming expansion
Industry stakeholders say casino-linked revenue has created a more stable foundation for Nebraska racing than existed in previous decades, even as wagering trends remain uneven.
Still, the industry’s future depends on continued gaming growth, stable funding formulas, and broader policy decisions around gambling expansion.
For now, supporters say casino partnerships represent the strongest financial support the sport has seen in decades, helping sustain Nebraska racing while gradually rebuilding its breeding base.
