Nebraska has legalized retail sports betting but mobile wagering has still not made its way through the legislature for the governor’s signature. Because of that, Nebraskans have been venturing across the border and into offshore sportsbooks to place bets in states that do allow online betting, which is costing Nebraska all that revenue.
A Trip Across the Bridge
Hundreds, if not thousands of Nebraskans, are making the trip across the Mormon Bridge into Iowa on a regular basis to place legal sports bets in Iowa. According to GeoComply Solutions, in a study conducted on behalf of the World-Herald, 2,300 geolocation checks involving 100 unique player accounts occurred on November 18, 2023 alone.
Iowa approved mobile wagering legal back in 2019 and because of that, the Hawkeye State, as well as other neighboring Nebraska states where digital sports betting is legal, are reaping the benefits. Meanwhile, Nebraska continues to languish with a retail-only provision.
Omaha City Attorney, Matt Kuhse, explained, “Here in the state of Nebraska, possession of marijuana is against the law. If you go into Colorado and possess marijuana, it’s not against the law. You’re subject to the laws of the state that you’re in, whether permanently or temporarily.”
Mobile Registration Impact
As we have seen in many other states, Iowa initially required online mobile registration at retail sportsbooks. But that provision was stricken in 2021, allowing anyone within its borders to register online and avoid the hassle of driving to the nearest casino that housed a licensed sportsbook. Naturally, the numbers increased, as we have witnessed in all other states that attempted the same.
Between January 1st and October 30th, GeoComply Solutions identified 64,000 mobile sports-betting user accounts in Nebraska that are being used elsewhere to place mobile wagers. But 64,000 accounts doesn’t necessarily mean 64,000 individuals, as one person can have multiple accounts.
However, it does give insight into how many Nebraskans are aware of the benefits of being able to place a bet on their mobile devices even if they have to take a ride across the border, which can be quicker than trudging to the local casino.
Are Nebraska Legislators Noticing?
It seems it’s only a matter of when —not if— will mobile sports betting become law in Nebraska, but there are still many who are opposed to expanded betting in the Cornhusker State.
State Sen. Eliot Bostar of Lincoln said, “We know clearly that Nebraskans are going to continue to wager on athletics. It’s just a question of whether or not we want to capture that revenue in order to provide other tax relief or if we want to see that revenue go over to other states as we are currently doing.”
Senator Lou Ann Linehan, of the Omaha area, has become aware of the border crossings and although she is not a gambling proponent, the legislator did remark, “If we have hundreds of Nebraskans betting in our surrounding states, including Iowa, at the very least we need to understand the impact on Nebraskans. Are we paying the social costs without being able to offset it with the fees and taxes Iowa is collecting?”
Keith Miller, a Drake University law professor who specializes in gaming law, said that the lack of a mobile option in Nebraska not only lines the pockets of neighboring states but can also drive Nebraskans to the offshore market.
“People are going to gamble on sports online, and if a state’s law drives them to illegal markets, the state loses tax revenue and the wagering supports unregulated companies,” he said. “But legalizing online sports betting is also rife with problems — it’s not as easy to police underage gambling and problem gambling online, among other things.”
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