The race to become the next state to launch a legal sports betting platform is on. The latest state to throw their hats into the ring is Nebraska, which on Thursday voted to approve a somewhat limited set to regulations around a sports wagering platform.
Nebraska was just one of six US states, along with Colorado, Louisiana, Maryland, South Dakota and Virginia that voted to allow a legal sports betting platform on the November 2020 election ballot with 64.9% support. It took some time and some legal and legislative wrangling, but it appears as though the final hurdles have finally been cleared and that Gov. Pete Ricketts’ signature is the only thing standing in the way of Nebraskans ability to legally cast a sports bet.
Ricketts has traditionally been against legal sports betting for his state but has apparently changed his tune most recently. It could be due, in part, to the $245.3 million in annual state tax revenues identified in a recent legislative study, or it could be due to the overwhelming support by voters last November or it could be due to the reported $500 million a year Nebraskans spend at cross-border casinos.
In just August he went on record saying: “Over the years, Nebraska has decided against allowing casino gambling in the Good Life — and for good reason. By keeping Nebraska casino-free, our state has minimized the social harms associated with problem gambling.”
How We Got Here
After the November election, lawmakers in Nebraska went to work on a Bill that would hopefully satisfy all. It remains to be seen if the legislatures successfully satisfied all of the factors that have made other jurisdictions within the US legal sports betting space successful.
In March, legislators were able to splice together Bills LB 560 into LB 561 that ticked the boxes of amending the state Constitution as well as the regulatory laws and a tax-plan for their legal sports betting platform.
In the end, LB 561, passed, 44-3-2, and LB 561A, a companion appropriations bill, passed, 44-2-3 – overwhelming support prior to sending it to the Governor’s desk. The governor has until June 2 to sign or veto the measure.
What the Bill Says
While the framework for a legal sports betting platform has established a foundation, there are still a fair share of details that are still to be worked out before it is launched in Nebraska.
What we do know is that the approved Bills will pave the way for casinos, which will be confined to licensed Nebraska horse racetracks, to allow legal sports betting. There is no mention of a mobile sports betting platform under the language of the Bills.
There will be a 20% tax on casino revenue, no betting on college sports betting and the newly established State Racing and Gaming Commission will take control of the betting platform.
“That mandate is they want casinos at racetracks, and the property tax relief they will provide. In doing so, they approved all games of chance, including sports betting and other such games, as a matter of law,” Sen. Tom Briese said. “I introduced LB 561 to clarify what the voters approved and provide some parameters that are both consistent with what the voters mandated and consistent with Nebraska values.”
Some Drawbacks
Nebraska has taken perhaps one of the most conservative approaches possible to their impending legal sports betting platform. One of the most eye-opening moves is the omission of a mobile platform that was cast aside after a contentious debate May 13.
The most successful legal sports betting states in the country have consistently reported 90% of their impressive monthly handles coming via internet bets. Under the current language of Nebraska’s sports betting legislation, they completely miss out on the immense revenue generated by betting apps.
The other glaring omission with the Nebraska legal sports betting platform is betting on college sports. “Authorized sports event does not include an instate collegiate sporting event in which an in-state collegiate or university team is a participant,” LB 561 states.
The Nebraska Cornhuskers are one of the most iconic college teams in all of the US and boast one of, if not the most rabid fan bases in the country. Nebraska sportsbooks will miss out on revenue opportunities from those fans under the current iteration of the Bill.
Sen. Adam Morfeld said of the provision lack of college betting: “I don’t like this provision. You can drive to Iowa and place a bet and then go watch the game … or you can place a bet on your phone at the game … but you can’t bet on Nebraska [in Nebraska]. It’s illogical, and I don’t care if 13 states are doing it. What we have in this amendment is illogical, nonsensical, and it’s what 13 states already allow. It makes no sense at all.”
Looking Ahead
There has been no timetable for actual launch for Nebraska legal sports betting, but we will know more soon. The Governor has until June 2 to sign legal sports betting into law which will allow for more details to come to light.
Nebraska has taken what can only be described as an uber-conservative road toward their sports betting launch and that approach could cost them. No mobile betting and no college sports wagering in a “college state” could drag the platform down and keep Nebraska from reaching its full potential.
But at least lawmakers in the state have acted on their constituents’ desires and have come up with something that will at a minimum keep the conversation going.
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