Nebraska Lawmakers Weigh Mobile Sports Betting Amid Opposition

mobile sports betting to the state. The proposed constitutional amendment, Legislative Resolution 20CA, was introduced by State Sen. Eliot Bostar of Lincoln. If ed, it would allow voters to decide whether online sports betting should be permitted. Currently, gambling in Nebraska is limited to casino-style gaming at the state’s six racetrack casinos, which voters approved in 2020.

Push for Expansion and Economic Benefits

Bostar emphasized the financial benefits of legalizing mobile sports betting, stating that Nebraska is losing potential tax revenue to neighboring states that already allow online wagering.

“Nebraska is currently missing out on a $1.6 billion state online industry and $32 million in annual tax revenue,” Bostar said, “which instead goes to neighboring states like Iowa, Colorado, Kansas.”

Proponents argue that the measure presents an opportunity to generate additional state revenue, which could be used for property tax relief. Before the hearing, groups opposed to gambling, including Stop Predatory Gambling, Gambling with the Good Life, and the Nebraska Family Alliance, expressed strong opposition to the proposal. They argued that expanding gambling opportunities would be detrimental to Nebraska families.

Pat Loontjer, executive director of Gambling with the Good Life, rejected the claim that gambling expansion would lead to property tax reductions.

“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,” Loontjer said. “It’s a lie.”

The General Affairs Committee also reviewed other gambling-related bills. One of these proposals seeks to remove restrictions on betting on Nebraska college games when the Cornhuskers play at home. Another measure involves minor adjustments to the current gambling laws to clarify tax allocation.

Nate Grasz, executive director of the Nebraska Family Alliance, criticized the amendment process, suggesting that gambling operators should initiate their own ballot measure instead of relying on legislators.

“If they want this on the ballot,” Grasz said, “they should go out and do the work themselves, rather than expect the senators to do it for them.”

Industry and Public Opinion

Lobbyists representing the gambling industry voiced their for the amendment, citing polling data that indicates increasing public approval for online sports betting.

“Five years ago, your constituents overwhelmingly ed in-person sports betting when they cast their vote yes on the 2020 ballot legalizing it with the state,” said Sarah Meuli, DraftKings Government Affairs Manager. “That enthusiasm has only grown.”

Critics, however, focused on potential social consequences, particularly the risk of gambling addiction among young people and vulnerable populations.

“The house always wins,” Grasz said. “For the house to win, the people of Nebraska and our own children … have to lose.”

Bostar acknowledged that the proposal’s future remains uncertain, estimating a “6-out-of-10” chance of the bill advancing beyond the committee stage. The committee took no immediate action on any of the proposed gambling measures following the hearing.

Nebraska’s Gambling Landscape and Regional Trends

While Nebraska’s retail sports betting market has been operational since 2023, efforts to legalize online wagering have repeatedly stalled. Previous attempts, including a measure considered during a special legislative session, failed to gain traction.

Monday’s hearing focused on LR20CA, which must before any additional sports betting legislation can be enacted. The committee chair noted that public on the amendment included three proponents, such as representatives from BetMGM and DraftKings, compared to 51 opponents. Not all provided in-person testimony, but opponents outnumbered ers across all digital betting proposals under discussion.

In 2020, Nebraska voters approved casino gambling, though it was unclear at the time whether sports betting was included. Lawmakers later determined that in-person sports betting was covered under the referendum, leading to the launch of sports betting at WarHorse Casino Lincoln in June 2023. The casino, along with others in the state, is operated by Ho-Chunk Inc., the business arm of the Winnebago Tribe.

The current proposal would allow six digital betting platforms, each tethered to an existing casino. Industry representatives suggested increasing the number of allowable platforms per location. A representative from Underdog proposed raising the limit to three platforms per casino, arguing that more competition would strengthen the market.

Neighboring states have already legalized mobile sports betting, with Iowa frequently cited in testimony. A geolocation analysis by GeoComply identified a Nebraska cornfield near the state border as a popular location for sports betting, as Nebraska residents cross into Iowa to place legal bets. Lindsay Slader, GeoComply’s senior vice president for compliance, reported a 63% increase in geolocation checks in Nebraska in 2024, amounting to 3.9 million attempts during the NFL season.

Ho-Chunk’s Interest in Digital Expansion

Ho-Chunk CEO and President Lance Morgan expressed for digital gambling expansion. He noted that four major betting companies dominate the U.S. market, and his company aims to collaborate with one of them if Nebraska legalizes mobile betting.

“There are four entities that are an oligarchy,” Morgan said. “We’re not going to reinvent the wheel. But we are going to make it so that we are not victims in their growth – we are participants.”

Morgan also contended that sports betting revenue would largely stay in Nebraska. Opponents disputed this, arguing that major national operators are not headquartered in the state and would not significantly expand the local workforce.

Morgan estimated that Nebraska could generate $32 million annually in tax revenue from online sports betting. However, a fiscal analysis of enabling legislation LB421 projected a lower figure—$19 million per year starting in fiscal year 2027.

Comparisons with other states show mixed results. West Virginia, with a population of 1.77 million, has collected $25.9 million in tax revenue from digital betting since 2019. Adjusting for Nebraska’s proposed tax rate, West Virginia’s earnings would equate to roughly $10 million per year. Kansas, with three million residents, has collected $19 million per year from digital betting since September 2023 at a 10% tax rate. A 20% tax rate would have doubled that amount, yet still falls short of Nebraska’s $32 million projection.

Opponents highlighted addiction risks, with Les Bernal of Stop Predatory Gambling labeling legal sports betting “an epic policy failure.” Bernal argued that gambling addiction rates rise in states with legal wagering, outweighing any financial benefits.

While Nebraska’s gambling revenue funds property tax relief, some residents remain skeptical. One opponent testified that she has seen no significant reduction in her tax bill since gambling was legalized. In 2024, Nebraska collected $29 million in land-based gambling revenue, with $942,000 coming from sports betting. Approximately $20 million was allocated to property tax relief, potentially translating to a modest reduction in tax bills.

Though legislators did not indicate a clear direction, the testimony heavily favored opponents. Despite this, Bostar reiterated his belief that Nebraska should capitalize on revenue already being spent on illegal gambling.

“People are already participating in this,” Bostar said. “Not ing this won’t stop that. I believe we should draw upon the revenue for public purposes.”

Source:

‘’Many more testify against Nebraska digital sports betting than for it’’, igamingbusiness.com, March 10, 2025.