Nebraska is now the frontrunner in the United States of America to next legalize online sports betting.
LR 20CA proposes a constitutional amendment without a gambling regulatory framework. On 17 March, a Senate Committee voted 6-2 to send the proposed constitutional amendment to the full floor.
The legislation seeks a constitutional amendment to: “permit an authorized gaming operator conducting sports wagering within a licensed racetrack enclosure to allow a sports wager to be placed by an individual located within the State of Nebraska at the time the individual places the sports wager by means of a mobile or electronic platform.”
The Nebraska legislature differs from the rest of the country. It’s America’s only state that operates with a single-chamber, meaning that the amendment must now get a two-thirds majority on each of three votes on the Senate floor to pass.
If it passes, the amendment will go on the 2026 ballot, meaning that if Nebraskans voted for it, legalized online sports betting would not launch in the state until 2027 at the earliest.
Given the lack of regulatory framework and potential timeframe for legalized digital sports betting, the door could be open for crypto sportsbooks. Currently, Nebraskans who wish to indulge in online wagering must pursue other means. Still, given the state could be building a regulatory framework two years from now, the landscape could shift significantly.
The amendment has passed this stage despite heated testimony last week. Sen Bostar, the primary sponsor of the bill, commented: “Nebraska is currently missing out on a $1.6 billion online sports betting industry and about $32 million in annual tax revenue.”
Advocates of the bill suggested that currently, Nebraskans bet offshore or travel into neighboring states to bet, and as such, the state is forgoing significant tax revenue.
Geolocation firm GeoComply’s data showed 3.9 million attempts were made from within Nebraska to access regulated sports betting sites in other states during the last NFL season.
The floor also heard that 92 percent of border crossings for sports betting were made into neighboring Iowa, where mobile wagering is legal.
Lance Morgan, CEO of WarHorse Casino, which operates retail sportsbooks in Lincoln and Omaha, argued: “We’re trying to regulate what’s already happening. Right now, they cross into Iowa, and Iowa gets their tax money and the revenue associated with it.”
Opponents Say Nebraska’s Betting Bill Focuses on Money, Not Families
Those opposing the bill argued that negative societal impact would far outweigh the tax revenue benefits. They also suggested that Nebraska retail sports betting has not brought material benefits to the state.
Nate Grasz, Executive Director of the Nebraska Family Alliance, argued: “The only thing you heard from proponents today was money. Nothing about what’s best for families and kids, and nothing about how more than 50 percent of online gambling revenue comes from addicted gamblers.”
Pat Loontjer, the Executive Director of Gambling With The Good Life, raised concerns over inflated revenue projections and lack of tax impact. “It’s been five years, and I don’t know how many of you have had your property taxes reduced. But no one that I’ve ever met. It’s a lie,” he quipped. Tax from casino gambling revenue was promised to go towards property tax relief, but none has materialized.
The state legislature will adjourn on 9 June, and bills can be carried over from this session to 2026.
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