Require audits of authorized gaming operators and provide powers and duties for the Auditor of Public Accounts

109th Legislature (2025-2026) Introduced by Brad von Gillern

LB 280 requires annual audits for Nebraska racetrack gaming operators, filed with the APA and Gaming Commission; gives APA review powers to strengthen tax accuracy and transparency.

Title printed. Carryover bill

Purpose and intent

LB 280 aims to ensure Nebraska collects the correct amount of annual gaming tax on gross gaming revenue from authorized gaming operators (within licensed racetrack facilities).

The bill would require annual audits of each authorized gaming operator and mandate reporting to the Auditor of Public Accounts (APA) and the Nebraska Gaming Commission. It adds the APA’s review powers to audit filings, strengthening oversight beyond the existing Racing and Gaming Commission rules.

Key provisions

Audits and reporting

Each authorized gaming operator must:

Cause an annual audit to be performed, at the operator’s expense, covering the preceding fiscal year.
Include a report on the operator’s internal control system within the annual audit.
File the audit report with both:
The Auditor of Public Accounts, and
The Nebraska Racing and Gaming Commission (RGC),
The filing deadline is within six months after the end of the operator’s fiscal year.

The audit scope covers all financial transactions and affairs of the operator in Nebraska.

Auditor of Public Accounts (APA) powers

The APA would be given specific powers and duties to:

Review the annual audit reports filed by authorized gaming operators.
Examine the operators as prescribed by the act (i.e., conduct additional examinations or investigations related to the audits).

Tax and penalties

Operators remain responsible for paying the applicable gaming tax by the 15th of each month, with reporting to the Gaming Commission per current rules.

Existing penalties for delinquent tax payments are retained:

A 10% penalty, plus interest at the rate set in Neb. Rev. Stat. § 45-104.02, until paid, for late tax payments.

Failure to file or false statements in required reports can result in Class IV felony penalties.

Administrative and fund changes

The Racing and Gaming Commission’s Racetrack Gaming Fund is preserved and used for administration of the Nebraska Racetrack Gaming Act and for audits, examinations, or reviews authorized by the act.

The bill reorganizes/statutory references to align with the audit requirements and APA review powers, including amendments to definitions and sections governing the act.

Who is affected

Authorized gaming operators at licensed Nebraska racetrack encloses (i.e., entities operating casino-style gaming within licensed venues).

The Nebraska Racing and Gaming Commission (RGC) (administrative oversight and reporting requirements).

The Auditor of Public Accounts (expands auditing and review duties).

Potentially taxpayers or gaming-related stakeholders who benefit from improved accuracy of tax collection and financial transparency.

Procedural and timeline notes

Introduced: January 15, 2025.

Committee: General Affairs.

Hearing date: February 10, 2025.

This bill would amend multiple sections of the Revised Statutes (2-1202, 9-1107, 9-1202, 9-1205, 9-1206, 9-1207, 9-1209, and related provisions), and repeal/revise related language to implement the audit and APA-review framework.

Bottom line

LB 280 seeks to tighten oversight of authorized gaming operators by requiring mandatory annual audits, mandating filing with the APA and the Gaming Commission, and granting the APA authority to review these audits. The measure aims to enhance tax accuracy, financial transparency, and enforcement potential for gaming activities in Nebraska.

Bill