A potential quarter horse racing facility and gaming operation could be coming to Bellevue's entertainment district—right next to the family-friendly water park. At the January 20, 2026 City Council meeting, council members approved a $1.92 million option agreement with BELREV LLC that grants the company exclusive rights to pursue development of a racing and gaming facility on city-owned land adjacent to the Bellevue Bay water park site. The option runs through January 2027 with three possible one-year extensions. Projected annual revenue: $2.2 to $3 million. But the proposal wasn't without controversy. Councilwoman Julie Collins raised concerns about locating an adult-oriented gaming facility next to a taxpayer-funded water park designed for families, and Mayor Rusty Hike recused himself from the vote due to a conflict of interest.
What was approved: $1.92 million option agreement with BELREV LLC for potential racing/gaming facility near entertainment district. Option term: Runs through January 2027 with three possible one-year extensions. Projected revenue: $2.2-3 million annually for the city. Key concern: Councilwoman Julie Collins questioned adult gaming facility next to family water park funded by taxpayers. Mayor's conflict: Rusty Hike recused himself, calling it a conflict of interest. Councilwoman Collins served as temporary Council President for the vote. Next steps: BELREV LLC will use option period to pursue Nebraska Racing and Gaming Commission approval.
If you're following Bellevue's development boom or considering building a custom home in the Omaha metro, the term "racing and gaming facility" specifically refers to a horse racing track with an attached casino, commonly called a "racino." Nebraska voters approved casino gambling in 2020, but with a restriction: casinos can only be built if connected to a licensed horse racing facility. Bellevue has been pursuing a racetrack and casino since June 2021, when keno operator John Hassett submitted an application to the Nebraska Racing and Gaming Commission for Belle Vue Downs, a quarter horse racing facility.
The $1.92 million option agreement gives BELREV LLC exclusive rights to pursue development for the next year with possible extensions, preventing other casino developers from pursuing the location adjacent to the $60 million Bellevue Bay water park. BELREV will use this option period to navigate the Racing and Gaming Commission approval process. If successful, they'll exercise the option and move forward. If not, the option expires and Bellevue keeps the $1.92 million payment.
Councilwoman Julie Collins raised what many Bellevue residents are likely thinking: is it appropriate to put a casino next to a water park explicitly marketed as a family destination? The water park is being built with $60 million in taxpayer-backed bonds and has been promoted as a top-10 national water park that will draw families from across the Midwest. Locating a gaming facility where alcohol and gambling are primary activities immediately adjacent creates potential brand confusion.
On the other side is the revenue argument. Mayor Hike has consistently argued that Bellevue residents are driving across the river to Iowa casinos and spending money that could be captured locally. He's estimated that a successful Bellevue casino could generate sufficient revenue to reduce city property taxes by 10-20%. For a bedroom community with high property tax burdens and limited commercial tax base, that's compelling. The projected $2.2-3 million in annual revenue from the BELREV agreement alone would fund significant municipal services.
If you're a homeowner in western Bellevue near the Highway 34 and Highway 75 corridor, this BELREV agreement adds another variable to property value projections. Residential construction and property values in proximity to entertainment districts can go either way. Increased economic activity, job creation, and infrastructure improvements tend to boost property values. But increased traffic, noise, and casino operations might make areas less attractive to families. For homeowners considering home additions or basement remodeling, understanding these development patterns helps inform decisions about where to invest in property improvements.
The BELREV option agreement runs through January 2027 with three possible one-year extensions, giving BELREV at least one year—and potentially up to four years—to secure Racing and Gaming Commission approval, finalize financing, complete design, and prepare for construction. During that time, the water park will open (mid-2027 target), hotels and retail will begin developing, and the entertainment district will start generating actual visitor traffic. By the time BELREV potentially exercises its option and begins construction, the market will have proven whether Bellevue's entertainment district strategy works. For construction professionals working across Omaha, Papillion, and Elkhorn, Bellevue's entertainment district represents a case study in large-scale mixed-use development coordination.
