Ho-Chunk Inc. has officially commenced construction on the WarHorse South Sioux, a significant tribal casino project valued at $100 million in South Sioux City, Nebraska.
Spanning 63,000 square feet, this development is strategically located at 4501 G Street, adjacent to the Atokad Downs racetrack. The casino will boast 600 slot machines, 16 table games, and a hotel featuring 100 rooms.
This marks Ho-Chunk Inc.'s third major WarHorse casino initiative in Nebraska, following the successful launches in Omaha and Lincoln. Both the company and local officials anticipate that this project will create hundreds of job opportunities and generate substantial tax revenue for the local economy.
WarHorse South Sioux is envisioned as an entertainment hub rather than just a conventional casino. Plans include an outdoor concert venue, conference facilities, and a 5,700-seat amphitheater designed for concerts and community gatherings.
Moreover, the casino will be centered around a spacious sports bar. Principal architect Ryan Johnson shared insights with KCAU, stating, “We adopted what we refer to as the dark horse approach, reflecting the WarHorse design. It will feature a darker ambiance, with masculine elements like rusted steel and exposed structures, which is quite distinctive for a casino.”
The construction will unfold in two phases, allowing portions of the facility to open while work continues on the rest of the site.
Lance Morgan, the president and CEO of Ho-Chunk Inc., emphasized that the design will incorporate ample windows, outdoor gathering spaces, and other open-air features. The aim is to create a destination that appeals to visitors, whether they choose to gamble or not.
The casino will also connect to the newly constructed Atokad racetrack, which is set to host additional races this fall. Ho-Chunk Capital CEO Aaron Lapointe noted that the Atokad horse races are scheduled for the Labor Day weekend.
Additionally, Ho-Chunk owns approximately 20 acres of nearby land, which could allow for future expansions.
This project is poised to provide a significant economic uplift to South Sioux City and the broader Siouxland area.
According to Morgan, the casino is expected to create around 230 jobs, while city officials estimate that the completed development will support over 200 permanent positions, along with numerous construction jobs throughout the two-year construction period.
Lori Warner, President of the South Sioux City Chamber of Commerce, highlighted that the development could positively impact local businesses by attracting visitors to concerts, conferences, and other events. She anticipates that visitors will spend money at local hotels, restaurants, and retail stores, including those who might not have otherwise visited the area.
Mayor Rod Koch mentioned that the project could also stimulate further development, including new housing, roads, and commercial projects surrounding the casino.
Morgan estimated that the casino could generate approximately $40 million in revenue, with tax revenues projected to reach around $9 million. Of this amount, 25% will be shared between the host city and county.
Under Nebraska law, 25% of gaming tax revenue from racetrack casinos is returned to local governments, divided between the host city and county. Koch estimated that the city could receive between $2 million and $3 million annually from this arrangement, in addition to revenue from visitor spending.
In 2020, Nebraska voters approved casino gambling at licensed horse racetracks through Initiative 431, which established a 20% tax on gross gaming revenue. Of the tax revenue, 75% is allocated for property tax relief and other statewide priorities, while 25% goes to local governments.
Morgan noted that he played a role in drafting the local revenue-sharing provision and pointed out that Iowa does not distribute casino tax revenue to host cities in a similar manner.
The project is spearheaded by Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska, which is also the owner of the WarHorse brand. The tribe additionally operates the WinnaVegas Casino Resort in Sloan, Iowa.
According to Morgan, the WarHorse properties in Omaha and Lincoln have created approximately 850 gaming jobs, with Ho-Chunk employing around 2,300 individuals across its various operations.