The Cornhusker State is making progress toward legalizing online sports betting in Nebraska, four years after voters approved retail, in-person sports betting.
The Unicameral General Affairs Committee recently approved LR3CA, which would expand the state’s current retail-only sports betting scene. However, another piece of legislation, LB 13, didn’t advance, potentially delaying the process until the 2026 election.
Legalizing online sports betting could generate an estimated $30 million in annual revenue for the state.
Contingency Added to Nebraska Sports Betting Talk
Sen. Eliot Bostar’s LR3CA suggests an online sports betting referendum for either this year’s or the 2025 ballot. However, Sen. John Cavanaugh’s amendment introduces a choice for the legislature: whether to legalize online sports betting if voters approve the constitutional amendment. This adds a contingency beyond the public referendum.
“It keeps power in the hands of the legislature, allows voters to speak on it, and then lets the legislature decide once it’s legal how proscriptive you want to make it, as well as what you want to do with the money,” Cavanaugh told the Lincoln Journal Star.
Currently, Nebraska allows commercial in-person casino gambling at horse racetracks and has regulations for slot machines, table games, and in-person sports betting.
What Do These New Developments Mean?
The good news from this week’s development is that voters will eventually get their say on expanding their sports betting options.
The bad news is that it may not appear on this November’s ballot.
LR3CA stipulates that the question will be put before voters on an upcoming election ballot. It doesn’t lock the November 5th date in stone. LB 13, which identified November 5 as the targeted date, did not advance, meaning the 2026 election is a distinct possibility.
The Secretary of State requires that lawmakers reach a four-fifths majority agreement If the constitutional amendment is to pass and appear on the November ballot. However, if it only receives a three-fifths majority, online sports betting will be on the 2026 ballot.
What Would Nebraska’s Sports Betting Revenue Be Used For?
Bostar argued that Nebraskans are already participating in betting, yet the state isn’t benefiting from it. He suggested that legalizing online betting, regulating it under state laws, and imposing a 20% tax could create a new revenue stream for the Property Tax Credit Cash Fund, which provides property tax relief for Nebraskans. Currently, in-person sports betting is taxed at a rate of 20% of gross sports betting revenue and dedicates 70% of tax revenue to the property tax fund.
However, the effectiveness of online sports betting as a property tax relief measure remains uncertain. While Bostar estimated that legalization could generate approximately $32 million over the first two-and-a-half years, Nebraska’s property tax bill for 2023 alone was $5.3 billion.
What’s Next for Nebraska’s Online Sports Betting Debate?
In a twist, another amendment would reroute any voter approval in November back to the legislature for the final word. Instead of directly permitting “an authorized gaming operator,” it would give the Legislature the power to set the rules for sports betting.
There’s no denying that Nebraska lawmakers are eager to make something happen. As Senator Bostar noted, the appetite for legal online sports betting is strong, with potential revenue earmarked for property tax relief.
But while there’s still time to sort out the details, the timeline for Nebraska’s online sports betting launch remains a moving target, shrouded in uncertainty.
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