Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioIn July, Nebraska became one of a few states to directly regulate “skill games,” slot machine look-alikes that are available in locations such as bars and convenience stores. The move comes after years of rising addiction concerns, with many pointing to the devices as a significant cause.
Many refer to skill games as “gray machines” as they’re commonly unregulated across the US. In 2011, the Nebraska Supreme Court ruled that they involve an element of skill, not just chance, and thus do not fall under the state’s definition of a gambling device.
Skill Games Fuel Addiction Concerns
The Supreme Court’s ruling led to the rise of the machines in the state, which is home to over 5,500 skill game terminals across 1,600 locations. Skill games now outnumber the state’s casino slots by more than two to one.
That has led to many Nebraskans, such as Mike Sciandra, to lose a significant amount of money.
“Many, many thousands of dollars,” Sciandra said of his losses, which led to two bankruptcies and contributed to his divorce.
Now the executive director of the Nebraska Council on Problem Gambling, Sciandra warns against the illusion of control these machines promote:
“A lot of gamblers all think they have a system. We all think we are smarter than the game we’re playing … Obviously, the house always wins in the end.”
David Geier, director of the state’s Problem Gambling Commission, says skill games are as addictive as slot machines:
“The people who are playing on (skill games) are losing a lot of money … and they’re producing about as many new client contacts as slot machines.”
Out of the commission’s $2.85 million annual budget, about $2 million goes toward gambling-cessation counseling for Nebraskans. At the same time, the number of those seeking help is increasing.
Geier notes that with the addition of more skill games and casinos in the state, the average monthly number of clients has increased from 257 to 328 over the past two years. The majority, 34%, cite convenience stores (skill games) as their primary gambling, compared to 28% in casinos.
Carly Spring, a certified disordered gambling counselor in Omaha, said:
“Five years ago, I had one client that was struggling with a game at a gas station … and now, yeah, that number is much larger.”
Nebraska One of Few States Regulating Skill Games
In July 2025, Nebraska began regulating skill game machines. It imposes a 5% tax on net revenue, with proceeds contributing to the Property Tax Credit Cash Fund, Tourism Promotions Fund, and the General Fund.
Additionally, approximately 2.5% is allocated to the Compulsive Gamblers Assistance Fund. The state estimates that this will translate to about $76,500 annually for addiction services. In context, casinos contribute over $1 million to problem gambling, while the lottery adds about $950,000.
State Sens. Jana Hughes (R-Seward) and Ashlei Spivey (D-Omaha) have also introduced a resolution to study the games’ impact, including whether they disproportionately affect low-income neighborhoods.
Nebraska is one of the few states that regulates skill games. Elsewhere, this year, there were three unsuccessful bills in Pennsylvania. In Virginia, Governor Youngkin vetoed a regulation bill that the legislature had passed in 2024. Most states leave the machines in legal limbo.
Light & Wonder Bets on Nebraska Skill Games
Regulating the market in Nebraska has recently attracted the global gaming giant and supplier Light & Wonder. The company recently announced an extension to its partnership with Betson Enterprises to roll out six skill-based games in Nebraska.
The titles include Gold Fish Feeding Time Treasure, Bier Haus, Lock it Up – Dragon Fire, and Zeus. They will be available on the company’s KASCADA Dual Screen cabinet.
As part of the agreement, Betson will open a distribution hub in La Vista to support the expansion. Nebraska became the fourth market for Light & Wonder and Betson’s collaboration after Illinois, Pennsylvania, and Georgia.
Casinos Post Record Revenues
Skill games are not alone in enjoying growth in Nebraska. The retail casino sector is also thriving. In May 2025, the four commercial casinos generated $24.5 million in revenue, a staggering 149.3% year-over-year increase.
That was mainly due to Warhorse Casino Omaha. The venue opened in August 2024, featuring about 800 slots. In April, it expanded to 1,200 slots and added sports betting. With $9.8 million in May revenue, Warhorse took the top spot in Nebraska.
Statewide, slots accounted for more than 80% of revenue, with table games and sports betting making up the remainder. The state collects 20% of revenue from taxes on casinos, equating to $4.84 million in May.
The sector is likely to continue enjoying substantial growth, with several additional casinos in the works. On August 19, the newest casino, Lake Mac Casino & Racetrack, opened its doors. Elsewhere, WarHorse South Sioux City is planning a $50 million racetrack and casino project expected to open in 2026.
