State takes more than $500,000 of gambling winnings to pay off outstanding debts

A new program to collect money owed to the state from gambling winnings brought in more than $500,000 in its first three months.

The Gambling Winnings Setoff for Outstanding Debt Act was approved last year and went into effect Sept. 2. It requires gaming operators to withhold a portion of winnings from people who have an unpaid debt with the state and send the funds to the Department of Revenue, which then distributes them to various agencies, including the departments of Motor Vehicles, Labor and Health and Human Services.

Winnings subject to seizure include those from casino games, horseracing, sports betting, and rewards from mechanical amusement devices.

Of the nearly $530,000 collected, about $215,000, or more than 40%, went to overdue child support, DHHS said in a news release.

“This program ensures funds are being used to help support kids across Nebraska,” Gov. Jim Pillen said in the release. “Parents have an obligation to their children, and we’re guaranteeing their well-being by collecting these winnings.”

As of Oct. 31, Nebraska’s five racetrack casinos had earned nearly $212 million in revenue this year, $66 million more than all of last year. Those same tracks have earned about $36.5 million from horseracing through the first 10 months, on track to top 2024’s full-year number of $37.7 million.