Nebraska Online Sports Betting Bill Fails to Pass

Nebraska Online Sports Betting Bill Fails to Pass
NCAA Football: Iowa at Nebraska

Nov 24, 2023; Lincoln, Nebraska, USA; Nebraska Cornhuskers quarterback Chubba Purdy (12) avoids a sack from Iowa Hawkeyes defensive back Sebastian Castro (29) and defensive lineman Logan Lee (85) at Memorial Stadium. Mandatory Credit: Reese Strickland-USA TODAY Sports

  • Nebraska’s special session to reduce property taxes is over
  • An online sports betting package was never discussed on the senate floor
  • Legislature will likely address sports betting again during 2025 session

The Nebraska legislature adjourned sine die on Tuesday, Aug. 20, and did not address or vote on an online sports betting package for the state.

The special legislative session was called by Gov. Jim Pillen (R) to find solutions to the state’s high property taxes.

Sen. Eliot Bostar (D-29) successfully moved a constitutional amendment out of committee last week to give voters a say on its legalization, but the package faced an uphill battle and likely would have had little impact on property tax relief.

Governor Supports Online Sports Betting

Despite the Nebraska legislature not addressing online sports betting during the special session, the topic will most likely be debated again in 2025.

Pillen has made no secret of his preference to legalize online sports betting. Earlier this year the governor revealed plans for a priority bill in 2025 to legalize the new form of gaming in Nebraska.

Fiscal estimates, he said, show Nebraska loses out on $32 million in tax revenue annually without legalized online sports betting. The state currently has legalized retail sports betting at its casinos.

Bostar introduced his legislative package to the General Affairs committee earlier this month. Bostar’s legislation amended 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.

Currently, in-person sports betting is taxed at a rate of 20% of gross sports betting revenue and dedicates 70% of tax revenue to the property tax fund.

Despite part of his package being approved in committee, it was never discussed on the senate floor. Additionally, several Nebraska senators spoke out on the legislation earlier this week.

Not All Senators On Board

A coalition of 13 senators released an official statement earlier this week decrying the attempts to legalize online sports betting in the name of property tax relief.

“Any effort to to expand gambling further or legalize online sports betting, be it a Constitutional Amendment or a statutory end-run, is a poison pill and will lose our support for the bill,” the Senators wrote.

The following Nebraska Senators signed the statement against online sports betting:

  • Sen. John Lowe (R-37)
  • Sen. Ray Aguilar (R-35)
  • Sen. Joni Albrecht (R-17)
  • Sen. Robert Clements (R-2)
  • Sen. Robert Dover (R-19)
  • Sen. Steve Erdman (R-47)
  • Sen. Steve Halloran (R-33)
  • Sen. Brian Hardin (R-48)
  • Sen. Rick Holdcroft (R-36)
  • Sen. Loren Lippincott (R-34)
  • Sen. Dave Murman (R-38)
  • Sen. Rita Sanders (R-45)
  • Sen. Julie Slama (R-1)

“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 expanding the associated addictions and adds to more suffering in our communities.”

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Nebraska Online Sports Betting Bill Fails to Pass

In a disappointing turn of events for sports betting enthusiasts in Nebraska, the online sports betting bill has failed to pass in the state legislature. The bill, which would have legalized online sports betting in the state, was seen as a potential revenue generator and a way to regulate an activity that is already taking place illegally.

The bill faced opposition from various groups, including some lawmakers who were concerned about the potential negative impact of online sports betting on society. Others argued that legalizing online sports betting would only serve to exacerbate gambling addiction issues in the state.

Despite these concerns, supporters of the bill pointed to the potential economic benefits of legalizing online sports betting. They argued that regulating the industry would create jobs, generate tax revenue for the state, and provide consumers with a safe and legal way to bet on sports.

Unfortunately, the bill ultimately failed to garner enough support in the state legislature to pass. This means that Nebraskans will have to continue to rely on illegal and unregulated online sports betting options if they wish to place bets on their favorite teams.

While this is certainly a setback for those who were hoping to see online sports betting legalized in Nebraska, it is possible that the issue could be revisited in the future. In the meantime, sports betting enthusiasts in the state will have to wait and see if any new legislation is introduced that could potentially legalize online sports betting in Nebraska.