Nebraska Considers Online Sports Betting

Lincoln, NE – August 1, 2024 – Nebraska's ongoing property tax crisis has prompted Governor Jim Pillen to call a special legislative session. While the focus is on finding solutions for property tax relief, online sports betting has emerged as a potential revenue source, receiving three hours of dedicated discussion on Wednesday.

Senator Eliot Bostar, a key member of the Revenue Committee, introduced LB13 and LR3CA, proposals aimed at legalizing online sports betting in Nebraska. These proposals are among over 100 submitted for consideration in the final property tax relief plan. Bostar emphasized the potential financial benefits, stating, “Nebraska’s property taxes are among the highest in the nation, heavily impacting homeowners, farmers, and small business owners. Directing revenues from online mobile sports betting to the property tax credit fund can provide much-needed relief.”

Retail sports betting has been legal in Nebraska since 2021, limited to casinos at six racetrack locations. However, the state's large rural population often crosses borders to place bets, highlighting a significant demand for legal online sports betting within Nebraska. Danny DiRienzo of GeoComply reported that between July 2023 and June 2024, 4.5 million geolocation checks were blocked within Nebraska, with many residents traveling to Iowa to place legal bets.

Proposal Details

Bostar’s LB13 proposes amendments to the Racetrack Gaming Act to include online mobile sports wagering. Key points include:

• Allowing racetrack casinos to offer sports wagering through an online platform.
• Removing restrictions on betting on in-state collegiate teams when playing in Nebraska.
• Allocating 90% of tax revenue to the Property Tax Credit Cash Fund.
• Setting aside funds for gambling addiction assistance and regulatory bodies.
• Adjusting the timeline for submitting constitutional amendments to facilitate a November ballot.

Bostar estimates that online sports betting could generate $32 million annually in tax revenue for Nebraska.

Ho-Chunk Nation, currently constructing three of Nebraska’s six casinos, supports the move, having partnered with major sports betting operators FanDuel, DraftKings, and BetMGM. CEO Lance Morgan highlighted the demand from rural residents for online betting access.

Conversely, several committee members and public figures voiced concerns. Former University of Nebraska football coach Tom Osborne argued that gambling revenues often result in a net economic loss and could negatively impact athletes and the community. Nate Grasz of the Nebraska Family Alliance warned about the social costs, including increased gambling addiction and bankruptcies.

Governor Pillen supports online sports betting but prefers to address it in the regular session next year. However, he acknowledged the current reality, stating, “Online sports betting is real and it is happening in the state. Whoever wants to do it is doing it, and we’re giving all the revenue to our neighbors.”

“Nebraska’s property taxes are among the highest in the nation. Directing revenues from online mobile sports betting to the property tax credit fund can provide much-needed relief.”

Future Steps

The General Affairs Committee will decide early next week whether to advance the online sports betting legislation for further discussion. If included, the proposal will join the final debate on property tax relief, with the special session expected to conclude by mid-August.

Senator Tom Brewer, despite his general opposition to gambling, recognized the urgent need for property tax relief to prevent depopulation in western Nebraska. He remarked, “Part of the problem right now is western Nebraska is being de-populated because the property taxes are so high, they can’t pay them and they’re leaving.”

As the debate continues, the future of online sports betting in Nebraska hangs in the balance, with significant implications for the state's economy and residents.