Nebraska Considers November Vote on Legalizing Online Sports Betting to Address Property Taxes

Nebraska is on the cusp of a thrilling transformation, with online sports betting potentially becoming a legal reality. This movement, spearheaded by ionate advocates and state officials, aims to tackle the pressing issue of high property taxes through an innovative and exciting avenue: online sports betting.

Governor Pillen’s Bold Proposal

The drama began unfolding last week when Governor Jim Pillen announced his intention to prioritize a bill that would legalize online sports betting. The governor’s stance was clear and emphatic: “Online sports betting is real and it’s happening in the state. Whoever wants to do it is doing it, and we’re giving all the revenue to our neighbors.”

Pillen’s words paint a vivid picture of the current situation. Despite the prohibition, Nebraskans are already placing bets—over 2 million illegal online sports bets between January and June this year, according to GeoComply. The revenue from these bets, which could have bolstered Nebraska’s finances, is instead flowing to neighboring states where such activities are legal.

Governor Pillen’s call for a special legislative session was a strategic masterstroke. It paves the way for a constitutional amendment to be printed on the November 2024 ballot, which could legalize—and tax—online sports betting.

Enter Senator Eliot Bostar. On a crisp Thursday morning, he introduced a constitutional amendment during the special session, setting the stage for a dramatic vote this November. If this amendment es, Nebraskans could see online sports betting legalized and taxed as early as 2024, a full two years ahead of the initial timeline.

The stakes couldn’t be higher. Lynne McNally, a key player in government policy for WarHorseCasino and the Nebraska Horsemen, highlighted the potential financial windfall. Waiting until 2026 to legalize sports betting, she warned, could cost the state a staggering $100 million in lost revenue. “We agree that property taxes in in the state of Nebraska are far too high, and anything that we can do to help be part of the solution, we’d be proud of doing that” McNally stated.

This financial urgency resonates deeply with many Nebraskans, who have long grappled with high property taxes. The promise of new revenue streams from legalized online sports betting offers a tantalizing solution to this perennial problem.

This isn’t Nebraska’s first foray into the world of legalized gambling. Back in 2020, voters approved sports betting and casino gambling at the state’s horseracing tracks with a decisive 65% majority. This landmark decision laid the groundwork for the current push to expand and modernize the state’s gambling offerings.

Nebraska’s Gaming Revolution: New Bills Could Transform the Betting Scene

Nebraska is set for a thrilling shift in its gaming regulations with the introduction of two landmark bills that could reshape the state’s betting landscape. On Thursday, Senator Eliot Bostar unveiled Legislative Bill 13, a proposal designed to usher in a new era of online sports betting. This bill aims to amend the state constitution, allowing existing racetrack operators to launch online betting platforms under the Nebraska Racetrack Gaming Act. It also proposes lifting the current ban on betting on in-state college sports teams, though it maintains restrictions on player prop bets and in-game betting on Nebraska college teams.

Governor Jim Pillen has endorsed this move, emphasizing that online betting is already happening in Nebraska and that regulating it could harness revenue currently flowing out of state

In a parallel development, Senator Carol Blood introduced LB6, the Fantasy Contests Act. This bill aims to legalize paid-entry fantasy sports contests across Nebraska. Unique in its approach, the act proposes a licensing fee structure based on operators’ revenue rather than traditional tax models. Operators would pay a $10,000 registration fee and an annual renewal fee of 6% of their gross gaming revenue in Nebraska, with no additional taxes.

These proposals mark a significant evolution in Nebraska’s gaming laws, promising to invigorate the industry and provide new avenues for revenue and entertainment. As these bills advance, they could set a precedent for other states exploring similar reforms.

Source:

”Legislation to legalize online sports betting introduced in special session”, nebraskapublicmedia.org, July 25, 2024.

”Nebraska bill would allow racetracks to launch online sports betting”, sbcamericas.com, July 25, 2024.