- A constitutional amendment bill to legalize Nebraska online sports betting has been advanced to the Senate floor
- The Nebraska General Affairs Committee approved LR20CA by a 6-2 vote
- If approved by Nebraska’s unicameral legislature, voters will see a ballot question in 2026 election
A Nebraska online sports betting bill survived its latest challenge and now finds itself moving forward to the Senate floor.
The Nebraska Senate General Affairs Committee earlier this week approved Sen. Eliot Bostar’s (D-29) legislation, LR20CA, by a 6-2 vote. His bill calls for the legalization of online sports betting through a constitutional amendment. If approved by the Nebraska Senate, state voters will decide its fate in the form of a ballot question during the November 2026 general election.
However, key questions remain as the bill’s fate will soon be decided.
Now or Later?
Bostar’s legislation amends the Nebraska Racetrack Gaming Act to allow casinos to offer online sports betting, dedicating the majority of online sports betting tax revenues to property tax relief for state residents. The proposed legislation dedicated 90% of online sports betting tax revenue to the Property Tax Credit Cash fund, which provides property tax relief for Nebraskans.
While his legislation provides a triggering method for legalization, Sen. Stan Clouse’s (R-37) bill, LB 421, provides the framework for online sports betting in the Cornhusker State. His bill allows each of the six Nebraska casinos to partner with up to one online sports betting operator and calls for the State Racing and Gaming Commission to regulate the new form of gaming.
His legislation also removes the current prohibition on sports betting for in-state colleges.
Clouse’s bill has not yet been moved forward by the Senate General Affairs committee.
While the legislation was moved forward, several Senators expressed concerns with Nebraska sports betting. Sen. John Cavanaugh (D-9) said at the hearing that sports betting legalization gives him a considerable amount of “heartburn,” but the legislature should have control over what is placed on a ballot.
He noted that the state’s casinos will likely attempt to place the issue on the ballot in 2026 through a referendum process, much like Missouri professional sports franchises did for the Show-Me State last year.
Retail sports betting is currently legal in the state and is taxed at a rate of 20%.
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Tough Road Ahead
Due to Nebraska’s unique unicameral legislature, the legislation will only have to pass through the Nebraska Senate before being sent to Gov. Jim Pillen (R) for his signature.
However, it must be approved on three separate votes with two-thirds majority each time to be placed on the 2026 general election ballot.
The legislation will have to receive votes of approval from 30 of the state’s 49 Senators each time.
The state of Nebraska is one step closer to legalizing online sports betting as the bill has advanced to the Senate floor for further consideration. This advancement marks a significant milestone in the ongoing efforts to expand gambling options in the state and generate additional revenue for the government.
The bill, which was introduced earlier this year, aims to legalize online sports betting and create a regulatory framework for operators to offer their services to residents of Nebraska. If passed, the bill would allow for both in-person and online sports betting, with strict regulations in place to protect consumers and ensure fair play.
Supporters of the bill argue that legalizing online sports betting would bring much-needed revenue to the state, which has been hit hard by the economic impact of the COVID-19 pandemic. They also point to the success of other states that have legalized sports betting, such as New Jersey and Pennsylvania, which have seen a significant increase in tax revenue and job creation as a result.
Opponents of the bill, however, raise concerns about the potential negative impacts of gambling on society, such as addiction and problem gambling. They also argue that legalizing online sports betting could lead to an increase in crime and corruption, as well as harm the integrity of sports competitions.
Despite these concerns, the bill has gained momentum in recent weeks, with several key lawmakers expressing their support for its passage. If approved by the Senate, the bill would then need to be signed into law by Governor Pete Ricketts before online sports betting could officially launch in Nebraska.
Overall, the advancement of the Nebraska online sports betting bill to the Senate floor represents a significant step forward in the state’s efforts to modernize its gambling laws and provide residents with more options for entertainment. It remains to be seen whether the bill will ultimately be passed into law, but its progress signals a growing acceptance of online sports betting as a legitimate form of entertainment and revenue generation.
