A bill to legalize online sports betting in Nebraska is expected in January, though some stakeholders are pushing for a faster timeline. Governor Jim Pillen made the announcement. Currently, sports betting in Nebraska is restricted to four retail locations.
“Online sports betting is real and it is happening in the state,” Pillen said. “Whoever wants to do it is doing it, and we’re giving all the revenue to our neighbors. I will put forth, and it will be a priority bill, in January to approve online sports betting.”
Designating online sports betting legislation as a priority bill ensures it will be considered ahead of other proposals during the debate.
Gaming industry stakeholders are pushing for the discussion on online sports betting to happen as soon as possible, rather than waiting until the new year. They’d prefer to see a constitutional amendment on November’s ballot.
Pillen Is Looking for a Way To Decrease Property Taxes
Sports betting has been a hot topic for Nebraskans and tourists attending events like the College World Series. Many locals travel to Iowa to place bets on their phones, but that may soon change. But that’s not the only reason the Governor wants to fast-track the discussion.
Online sports betting could be key to Governor Pillen’s goal of cutting property taxes in Nebraska, which would require almost $2 billion in revenue. Despite his previous opposition to online wagering, Pillen is considering it as the most viable option, alongside potential sin tax increases and spending cuts, to achieve this ambitious target.
The online sports betting legislation that is currently being discussed would direct 90% of online sports betting revenue to the state’s property tax relief fund.
Sports Betting Currently Allowed in Nebraska Casinos
Last June, Nebraska made its debut in the world of retail sports wagering, with WarHorse Casino taking the state’s first bet. Under the gaming law enacted by former Governor Pete Ricketts in 2021, sports betting is currently limited to casino grounds. However, players can legally view, create, and save their bets online before heading to the casino to place them.
Additionally, Nebraska law prohibits betting on any in-state college or university events, ensuring local college sports remain free from wagering influence.
Nebraska Retail Casinos Performing Well So Far… But
As of May this year, Nebraska’s four physical sportsbooks generated a combined revenue of nearly $2 million.
The state imposes a 20% tax on gaming revenue. Data from the Nebraska Racing Commission shows that the state collected $342,000 from operators between January and May.
Overall, gaming contributed just under $9 million to state revenue during this period, with a little more than $6 million allocated to the property tax relief fund.
“Online sports betting would be a viable way to reduce the property tax burden since it would bring approximately $30 to $32 million per year in additional tax revenue for the state.” Lynne McNally, government relations director for WarHorse Casino, told Legal Sports Report. “We had the first bricks-and-mortar sportsbook in the state of Nebraska. We’re doing well and very pleased with it. However, online betting dwarfs retail in every single state they have it.”
So, the wheels are in motion and online sports betting will be added at some point. It’s just a matter of when. We will keep you posted.
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