- The Nebraska General Affairs Committee held a hearing for four pieces of sports betting legislation
- Nebraska lawmakers are looking to legalize online sports betting through a constitutional amendment
- The committee also heard bills on in-state sports betting and daily fantasy sports regulation
Nebraska Senators are once again wading back into online sports betting waters.
Lawmakers discussed three pieces of legislation to legalize Nebraska online sports betting in the General Affairs Committee for the first time since the issues failed in a special session last year.
Sports betting is currently legal in the state, but lawmakers are hoping to expand the gaming to include online sports through a constitutional amendment.
Constitutional Amendment Necessary?
Sen. Eliot Bostar’s (D-29) legislation, LR20CA, seeks to legalize online sports betting through a constitutional amendment. If approved by Nebraska Senate, state voters will decide its fate in the form of a ballot question during the November 2026 general election.
Bostar filed the exact same resolution as on he introduced during last year’s special legislation session to find solutions to the state’s high property tax burden.
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.
According to Bostar, Nebraska loses out on $32 million in potential tax revenue for each year the state drags its feet on legalizing online sports betting.
“I believe we should draw upon the revenue available for public purposes,” he said.
Currently, in-person sports betting is taxed at a rate of 20% of gross sports betting revenue.
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.
Additionally, his bill removes the current prohibition on placing bets on in-state colleges who are participating in a game being held in Nebraska.
The vast majority of tax revenues will be earmarked for Nebraska property tax relief.
Sen. Ashlei Spivey (D-13) took a different approach, presenting a bill legalizing online sports betting without the need for a constitutional amendment. Her legislation, LB 438, legalizes online sports betting through a simple bill. Spivey said state counsel assured her that the framework for this exists within the approved 2020 Nebraska constitutional amendment to allow racinos to offer casino-style gambling.
Do Nebraskans Want Online Sports Betting?
Nebraska currently allows in-person sports betting in brick-and-mortar casinos, but an online sports betting expansion will be left up to the voters if the Senate pushes through the legislation. But is this something that Nebraskans actually want?
Lindsay Slader, Sr. VP of Compliance at GeoComply, reported during the the hearing that 3.9 million attempts were made by Nebraskans during the 2024-2025 NFL season to access regulated sports betting sites. All attempts to log into sportsbooks were blocked by the geolocation company.
The attempts were made from more than 83,000 users registered with sportsbooks in Nebraska, a 63% increase over last season’s total.
Despite interest, several spoke up in opposition of legalized online sports betting. If online sports betting is approved, the most vulnerable populations in the state – children and problem gamblers – will be inundated with aggressive sports betting advertising and algorithms, Nate Grasz, a representative for the Nebraska Family Alliance, said.
“Sports betting is already legal in Nebraska. If they want to bet on sports, they can, but this is trying to force it onto every device in the state,” he said.
Mike Sciandra, a spokesperson for the Nebraska Gamblers Assistance Program, noted his group is officially neutral on the legislation, but all sides need to take a realistic approach to what’s happening right now in the state.
People are betting on sports through unregulated platforms online, he said, and are going to treatment centers for help with problem gaming habits. The online sports betting bills will provide additional funding to the Nebraska Gamblers Assistance Program.
“Anyone that wants to find online sports betting right now will find it,” he said.
In-State College Betting, DFS Also on Tap
Sen. Tom Brandt (R-32) also presented two bills, LB 342 and LB 63, to regulate daily fantasy sports (DFS) contests and allow bets on in-state colleges participating in events in Nebraska, respectively.
LB 342, the Fantasy Sports Consumer Protection Act, will bring state DFS games out of the gray market and set up a framework for licenses and tax rates. The act sets an initial license fee for a fantasy contest operator that operated in the state prior to the effective date of the act will be 10% of its adjusted gross fantasy revenues from the last year, or $5,000, whichever is less. For those that were not active in the state prior to the state date, the fee will be $5,000 for a license.
Operators will pay a 10% tax on adjusted gross fantasy revenues. The launch date in the bill is set for July 1, 2026.
One interesting note on the bill, it allows player vs. house DFS games, which many states have prohibited over the last several years. Brandt said he is willing to amend this portion of the legislation if it is unconstitutional.
His other bill, LB 63, seeks to lift the ban on sports bets for in-state colleges who are playing a game in Nebraska. Currently, sports bettors can place wagers on Nebraska colleges or university teams if they are playing outside of the state. If they play a game that’s being held in Nebraska, sports bettors cannot place a wager on the matchup.
It’s a matter of taking advantage of all available sports betting revenue coming to the state, he said. Sports betting customers want to place bets on the University of Nebraska Cornhuskers and the Creighton University Blue Jays if they’re playing in-state.
Nebraska lawmakers are once again considering legislation that would legalize online sports betting in the state. This comes after previous attempts to pass similar bills have failed to gain traction in the past.
The proposed legislation would allow for online sports betting to be conducted through licensed operators, who would be required to adhere to strict regulations set forth by the state. This would include measures to ensure the integrity of the games, protect consumers, and prevent problem gambling.
Supporters of the bill argue that legalizing online sports betting would bring in much-needed revenue for the state, as well as create jobs and stimulate economic growth. They also point to the fact that many Nebraskans are already participating in illegal sports betting through offshore websites, and legalizing it would provide a safer and more regulated alternative.
Opponents of the bill, however, have raised concerns about the potential negative impacts of legalizing online sports betting, such as an increase in problem gambling and addiction. They also argue that it could lead to an increase in crime and corruption.
Despite these concerns, many lawmakers are optimistic about the potential benefits of legalizing online sports betting in Nebraska. They believe that it could help to generate much-needed revenue for the state, as well as provide a safe and regulated environment for sports bettors.
As the debate over online sports betting legislation continues in Nebraska, it remains to be seen whether or not the bill will ultimately be passed. However, one thing is clear: the issue is not going away anytime soon, and lawmakers will continue to grapple with how best to regulate this rapidly growing industry.
