Nebraska Commission Hires Staff to Improve Compliance

The Nebraska Racing and Gaming Commission (NRGC) has hired new staff members to address compliance shortcomings identified in an October audit, which stemmed from the state’s recent expansion of legal gambling. The hiring of Drew Behn as Director of Enforcement and Ari Saltzman as auditor aims to bolster the agency’s ability to ensure regulatory compliance and oversight as the state’s gambling industry continues to grow.

The audit, conducted by State Auditor Mike Foley, revealed serious issues with the NRGC’s oversight, particularly in the management of casino tax revenue. Foley characterized the agency’s previous efforts as “lackluster at best and oftentimes nonexistent.” The NRGC had previously been operating with minimal staff, relying on a single individual for financial matters, a setup that sufficed prior to the legalization of casino gaming in 2020.

Since the opening of four licensed casinos in Nebraska, however, the NRGC’s responsibilities have expanded significantly. Commission Chairman Denny Lee stated that the agency had been actively seeking additional hires to improve oversight even before the audit, with Executive Director Casey Ricketts noting that the auditor position had been actively recruited for more than a year.

In response to the audit, the NRGC is now focusing on strengthening its internal controls and improving transparency. Lee emphasized the importance of working with the state to improve the agency’s oversight processes, ensuring that future audits are conducted with full integrity and compliance.

Nebraska’s situation reflects a broader trend seen in several U.S. states where the rapid expansion of legalized gambling has outpaced the capacity of regulatory agencies to monitor and enforce compliance effectively. As the gambling industry continues to mature, growing pains are becoming more evident.

States like Virginia and New Jersey have also experienced similar challenges as their gambling industries expand. In Virginia, lawmakers are considering the creation of a new regulatory body to oversee all forms of gambling, including retail casinos. The proposed Virginia Gaming Commission (VGC) would take on this role, with plans to establish the agency by 2025 and launch its full regulatory authority by 2027.

Meanwhile, in New Jersey, an established gambling market, the New Jersey Division of Gaming Enforcement (DGE) discovered operator errors in sports betting data reporting by DraftKings. The operator had misreported several months of wagering totals, leading to a $100,000 fine. Acting Director Mary Jo Flaherty labeled the error “unacceptable,” underscoring the critical need for accurate reporting and regulatory vigilance.

 

The audit revealed our oversight was lacking, and these hires are a step toward ensuring compliance, transparency, and integrity as our responsibilities grow.

 

The Future

Nebraska’s recent steps to improve regulatory compliance are a direct result of the challenges posed by the state’s rapid gambling expansion. The NRGC’s new hires are a proactive measure to ensure that the agency can effectively oversee the growing number of casinos, with a focus on financial accountability and transparency.

As Nebraska’s gambling industry continues to evolve, the state’s regulators will need to adapt to meet the increasing demands for oversight. The situation in Nebraska serves as a reminder of the broader issue faced by states nationwide: the need for robust, adaptable regulatory systems as gambling markets expand. The NRGC’s efforts, alongside similar initiatives in other states, signal a growing recognition of the importance of ensuring that the benefits of legalized gambling are balanced by strong regulatory frameworks.