Skill gaming is still young in Nebraska, which means there will be many new developments happening in the industry. It is Accel’s goal to provide all skill gaming establishments with the most up to date news regarding the industry. With that being said, here are the latest updates your establishment should know about as of this writing.
LB388
Although LB388 did not pass, it is still important to discuss how it could’ve impacted the skill gaming industry. LB388 proposed a 20% tax on all credits played on cash devices. If passed, this would have impacted 1,600 small businesses and 12,000 retail employees across Nebraska with an average $15,368 annual tax per skill gaming location.
LB685
LB685 was passed. It affects the Mechanical Amusement Device Tax Act, and helps improve enforcement and transparency within the skill gaming industry.
One notable change that occurred with LB685 is that the legal age to operate/play Cash Devices increased from 19 to 21. Another significant change is the new revenue split in the Nebraska skill gaming industry. The previous revenue split was 50/50 between Cash Device Distributor and Cash Device Operator. The new revenue split will be 47.5% to Cash Device Distributor, 47.5% to Cash Device Operator and 5% to the state. The state’s 5% will be allocated to various funds as follows:
- 40% to Property Tax Credit Cash Fund
- 20% Gaming Commissioner Fund
- 10% to NE Tourism Commission
- 5% to Compulsive Gamblers Assistance Fund
- 5% to General Fund
- 25% to County Treasurer where the Cash Device is located
Also included in LB685 is that in order to obtain a Cash Device license, a Cash Device Operator is subject to a one-time background check (excluding locations with current liquor licenses). Additionally, starting January 1, 2025, the annual license for any Cash Device Distributor will include a fee of $100 per cash device up to $5,000. Cash Device Manufacturers are also affected by LB685 and will be required to pay a $5,000 annual licensing fee. Additionally, all skill gaming locations, excluding fraternal or veterans organizations, must generate 60% of their gross operating revenue from sources outside of Cash Device play. LB685 also states that municipalities cannot impose additional taxes on Cash Devices. The Gaming Commission has been given more authority through LB685 to review documents between Cash Device Distributors and Cash Device Operators including: contacts / agreements, leases, revenue share agreements, profit share documents, annual reports, tax files, and bills of sale. Lastly, the Tax Commissioner is required to establish a central server for the purpose of reviewing all data and accurate revenue income from all Cash Devices across the state starting July 1st, 2025.
We hope you found all this information valuable! Stay tuned for more articles like this by Accel Entertainment further discussing updates to the Nebraska skill gaming market.
