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Northstar says it did nothing wrong and will fight the lawsuit. The lawsuit gives a peek into the high-stakes fight to put casinos in Nebraska including allegations that the signature-gathering operation was slipshod and that petitions ended up in a dumpster in downtown Omaha. Ho-Chunk, which runs a casino near Sloan, Iowa, says it paid more than $1.29 million to Northstar to run a petition effort to get a constitutional amendment on the ballot to allow casino gambling in Nebraska. Had those efforts succeeded and the measure passed Ho-Chunk said it had an agreement with Nebraska horse-racing industry leaders that Ho-Chunk would be able to operate casinos at licensed racetracks in Omaha, Lincoln and elsewhere in Nebraska. Ho-Chunk using a suborganization called Keep the Money in Nebraska said it put its faith in Northstar based on this premise: The Omaha company had conducted a survey that found that 57 percent of likely voters would either vote for, or lean towards voting for, expanded gambling. In the end, voters never got a chance: The petition effort led by Northstar fell far short of getting the required 117,000 signatures, in part because more than 41,000 signatures were disqualified because they were either duplicates or the petition signers werent registered voters in the county listed. Lance Morgan, head of Ho-Chunk, has called that error rate ridiculously high. The lawsuit says Northstar should have to repay Ho-Chunk out of fairness and justice. But for (Northstars) false overstatements to (Ho-Chunk) of the number of signatures gathered and the validation rate of said signatures, (Ho-Chunk) would have terminated the service agreement and would not have continued to make ... payments to Northstar, Ho-Chunk attorney Conly Schulte wrote in the lawsuit. Scott Lautenbaugh, an attorney and spokesman for Northstar, said the Omaha company will fight the lawsuit and stands by its efforts to put gambling on the ballot. We think well be vindicated, he said. Lautenbaugh noted that the company has run several successful political campaigns as well as bond-issue campaigns for area school districts. Lautenbaugh said the survey used to measure Nebraskans gambling appetite was conducted by the book.
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