Nebraska Senator Introduces Online Sports Betting Bill

online sports betting to Nebraska have gained momentum as Senator Stanley Clouse introduced Legislative Bill 421 (LB 421) at the start of the legislative session. This measure seeks to amend the Nebraska Racetrack Gaming Act, expanding gambling operations to include online sports betting under state regulation. The bill includes a proposal to revise the distribution of tax revenues from sports wagering and implements provisions to address problem gambling. It also carries an emergency clause, allowing the legislation to take effect immediately upon approval.

Regulatory Framework and Provisions

LB 421 lays out a framework tying online sports betting to the state’s licensed racetracks. These facilities would be required to collaborate with licensed sportsbook operators, with each racetrack limited to one partnership. Nebraska, home to six racetracks, would regulate these operations through the State Racing and Gaming Commission.

To obtain a license, sportsbooks must pay a $5 million fee, spread over five years, with $1 million due upon issuance. The bill allocates 3% of tax revenues to the Compulsive Gamblers Assistance Fund, 3.5% each to the Racing Commission’s Gaming and Cash Funds, and 90% to the Property Tax Credit Cash Fund. It also expands the scope of legal betting to include wagers on in-state collegiate sports, previously prohibited.

Clouse emphasized the importance of capturing revenue lost to neighboring states due to unregulated online betting. “It’s not about endorsing gambling but managing it effectively and ensuring resources are available for those struggling with addiction,” he explained.

Comparisons to Previous Proposals

This is not the state’s first attempt to legalize online betting. During a 17-day special legislative session last year, Sen. Elliot Bostar introduced LR3CA, a proposal linking online sports betting to licensed casinos. However, it failed to gain traction. Clouse’s bill seeks to address past concerns with a more robust regulatory structure and clearly defined revenue allocations.

Gov. Jim Pillen has previously underscored the urgency of addressing this issue, pointing out that Nebraska loses substantial tax revenue to neighboring states. “Online sports betting is already happening,” he remarked. “We’re forfeiting all the revenue to our neighbors.”

College Betting Under Consideration

LB 421 coincides with another bill, Legislative Bill 63, introduced by Senator Tom Brandt. This measure aims to legalize pre-match and live betting on in-state collegiate sports. Nebraska’s university teams, such as those from the University of Nebraska and Creighton University, are prominent in collegiate sports, drawing significant interest from fans and bettors alike. Brandt’s proposal seeks to manage existing betting behavior within state borders, as many residents currently place bets in neighboring states.

Source:

Legislative Bill 421 [pdf], Nebraska Legislature, 2025.