Nebraska online sports betting might have to wait until 2026 after a special legislative session ended last Tuesday without formal discussion of legalizing the activity.
January 2025 was initially reported as the earliest time that Nebraska lawmakers would be able to pass legislation for online sports betting.
However, the proposal will be a sports betting priority bill, according to Gov. Jim Pillen. Since it will probably be an amendment, it will not be on the ballot until 2026.
Nebraska legalized retail sports betting via LB561 in May 2021.
Nebraska Sen. Eliot Bostar introduced LR3CA and LB13 at the start of the special session in July
Sen. Eliot Bostar introduced LR3CA and LB13 at the start of the special session that began July 25. The special session was called by Pillen with the objective of addressing property tax relief and lasted 17 days. Gambling was arguably the most polarizing topic.
During the session, Bostar and other advocates proposed a constitutional amendment that would have allowed residents to vote on legalizing online sports betting in the Cornhusker State.
Bostar’s legislation, LR3CA, would have amended the Nebraska Racetrack Gaming Act to allow casinos to offer mobile sports wagering if the issue gained legislative and public approval. The bill package had appropriated up to 90 percent of betting revenue for property tax relief.
Supporters argued that Nebraskans were already betting both within and outside the state. They claim that legalizing online sports wagering would have helped boost tax revenue while simultaneously lowering property taxes. Bostar’s constitutional amendment progressed out of committee last week.
Nonetheless, Nebraska Legislature only would have introduced sports betting had the public voted yes. Although part of Bostar’s package was approved in committee, the sports betting bill was never discussed on the Senate floor.
13 senators released a letter condemning the attempts to legalize online sports betting
The online sports betting bill also faced stern opposition after advancing out of committee. A group of 13 senators released an official statement last week condemning the attempts to legalize online sports betting, citing that it would not provide significant property tax relief and would worsen problem gambling.
Senators John Lowe, Ray Aguilar, Joni Albrecht, Robert Clements, Robert Dover, Steve Erdman, Steve Halloran, Brian Hardin, Rick Holdcroft, Loren Lippincott, Rita Sanders, and Julie Slama released the following statement:
“Nebraska very recently legalized casinos largely on the promise of property tax relief that has failed to manifest itself. Expanding gambling further will inevitably lead to expanding the associated addictions and adds to more suffering in our communities. Online sports betting turns every cell phone into a 24/7 handheld gambling device, leading to new addictions.”
Their statement Friday cites data from the National Council on Problem Gambling (NCPG). According to the NCPG, online sports betting has increased the risk of gambling addiction by 30 percent, while the council’s helpline reports a 150 percent spike in calls.
The data also shows that 20 percent of college students gamble using financial aid dollars. Nebraska football coaching legend Tom Osborne disapproved of sports betting legislation as well.
GeoComply blocked 4.5 million attempts at online bets in the Cornhusker state from July 2023 to June 2024
GeoComply, the global leader in geolocation, fraud prevention, and cybersecurity solutions, has blocked more than 2 million attempts to place online sports bets in Nebraska between January and the end of June 2024, a recently released market study reveals.
Online gaming in Nebraska is monitored and controlled by geofence technology. The Vancouver-based software company blocked 4.5 million attempts at online bets in the Cornhusker State from July 2023 to June 2024.
GeoComply’s market study indicates that 64,000 Nebraskans opened online accounts at one of the top four betting sites — BetMGM, Caesars Entertainment, DraftKings, and FanDuel. The study shows that more than 21,000 of those denied bets came from out-of-state betting in Iowa.
Nebraska will eventually legalize online sports betting. It’s all a matter of when, not if.
In the meantime, online sports betting advocates will have to start over, as bills do not carry over into new legislative years. The state’s next legislative session will run from January through May 2025. Pillen is expected to prioritize online sports betting again next year.