Foes allege irregularities in Nebraska gambling petition

Kevin O'Hanlon

Wednesday, July 24, 2002 | 9:44 a.m.

LINCOLN, Neb. -- Calling the petition drive to legalize video slot gambling "insidious" and a threat to the state, a grass-roots group has filed a lawsuit challenging the petition's legality.

Gambling with the Good Life filed a lawsuit Monday in Lancaster County District Court, asking for a permanent injunction to keep the measure from appearing on the November ballot.

"All of us here share an alarming concern about the effort to bring tens of thousands of video slot machines to our great state," said Pat Loontjer, director of Gambling with the Good Life during a Capitol news conference on Tuesday.

The lawsuit claims a required list of all petition organizers and their addresses was not filed with the state before petitions were circulated.

It also alleges the petition improperly attempts to restrict the Legislature's authority to write tax laws and that the proposed ballot language for the petition is legally insufficient.

The Nebraska Cooperative Government Commission, which is made up of cities and counties that operate keno lottery games, organized the petition drive.

Organizers turned in about 178,000 signed petitions to put the issue on the November ballot before the July 5 deadline.

About 107,000 valid signatures are needed for the proposed constitutional amendment to be placed on the ballot.

If it appears on the ballot and is approved by voters, the state's constitution would be changed to allow video slot machines in bars, restaurants, race tracks and keno parlors, and in designated video slot parlors located within 20 miles of any community that already has video gambling.

That would affect communities that border states that have gambling -- Iowa, South Dakota, Kansas and Colorado.

Indian tribes that have fought unsuccessfully for years in the Legislature to have video gambling approved are expected to open video slot parlors on their reservations near the Iowa border, if the amendment passes.

There are about 3,000 locations in Nebraska that have liquor licenses and would be eligible to add video slot machines, but local governments would have to approve.

Half the money raised through the gambling would benefit local governments, with the money earmarked for property tax relief, local charities, bonuses for teachers and tuition credits for students.

But half of the proceeds will go toward the profits of the machine operators, said Loontjer, who has organized a coalition of church groups, community organizations and others to defeat the amendment.

"The current slot-machine proposal is written to benefit a few greedy owners, who will keep 50 percent of the profit," Loontjer said.

She and other group members said they fear that expanded gambling will lead to more crime and other social ills.

"Gambling hurts people," Loontjer said. "It hurts small business. It hurts families. It hurts children."

She said her group has allied itself with 150 businesses, churches and civic groups to oppose the proposed constitutional amendment.

Kimball Mayor Greg Robinson, president of the Nebraska Cooperative Government Commission, said he could not comment on the lawsuit because he had not seen it.