A December letter from the Nebraska State Auditor’s Office has identified concerns involving internal controls and compliance procedures within the Nebraska Racing and Gaming Commission.
The Dec. 17 correspondence, sent by Assistant Deputy Auditor Kris Kucera to Commission Executive Director Casey Ricketts, outlined issues discovered during a recent audit. According to the letter, the findings relate to internal control practices and other operational matters. The auditor noted that the recommendations were discussed with commission management and are intended to strengthen oversight and improve operational efficiency.
A significant portion of the letter focuses on the commission’s oversight of gaming tax revenues. The audit states that the commission collected more than $40.2 million in gaming taxes during the fiscal year ending June 30, 2025. However, the auditor reported that the commission lacks adequate procedures to ensure those funds are properly reviewed and verified. Specifically, the letter states that the commission did not effectively utilize documentation from licensed gaming operators — such as audited financial statements — to confirm that the correct amount of gaming tax, set at 20 percent under Nebraska law, was collected.
As part of the review, auditors examined a July 2024 payment from the Grand Island Casino and Resort totaling $528,188. The casino reported $2.64 million in revenue for that period, but the audit found that the commission did not have sufficient procedures in place to verify the accuracy of the reported revenue.
The letter also noted that while state law requires annual audits of each casino’s internal control system, documentation showing that a January through March 2025 audit of the Grand Island Casino was reviewed by the commission could not be found.
Vince Fiala, general manager of the Grand Island Casino and Resort, stated that the casino itself is not audited by the State Auditor’s Office. Representatives of the Nebraska Racing and Gaming Commission were not available for comment.
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