Mar 16, 2024; Minneapolis, MN, USA; Nebraska Cornhuskers guard Keisei Tominaga (30) reacts during the second half against the Illinois Fighting Illini at Target Center. Mandatory Credit: Matt Krohn-USA TODAY Sports
- An online sports betting bill has been introduced in a special Nebraska legislative session
- LB 13 seeks to legalize online sports betting in the state
- Nebraska currently has legal in-person sports betting at state racinos
A special Nebraska legislative session, called by Gov. Jim Pillen (D) to find solutions to lower state property taxes, will at least feature a discussion on the legalization of online sports betting.
Sen. Eliot Bostar (D-29) introduced LB 13 on July 25 to legalize online sports betting in the Cornhusker State. The bill was referred to the General Affairs Committee and will have a hearing on Wednesday, July 31.
Nebraska legalized in-person sports betting at state casinos in 2021, but launched the new form of gaming in June 2023. The newly introduced bill will allow casinos to offer online sports betting to Nebraska residents through either their own platforms or through a partnership with an operator.
Dedicating More Tax Revenue for Property Tax Relief
Bostar’s bill amends the Nebraska Racetrack Gaming Act to allow casinos to offer online sports betting. In the introduced legislation, Bostar dedicates the majority of online sports betting tax revenues to property tax relief for state residents.
“The legislature finds that Nebraska relies more heavily on local property taxes to support public education compared to other states and consistently ranks in the top ten among all states in terms of per capita property tax burden on its citizens. The legislature further finds that is important to authorize and impose a tax upon the gross gaming of sports wagering by means of an online sports wagering platform in order to create a property tax relief program to reduce the tax liability of property taxes paid to support public education,” he wrote in the bill.
LB 13 is scheduled for a General Affairs Committee hearing on Wednesday, July 31.
The proposed legislation dedicates 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.
Three percent of the remaining sports betting tax revenues would be dedicated to a compulsive gamblers assistance fund, 3.5% to the Racing and Gaming Commission’s Racetrack Gaming fund, and 3.5% to the Racing and Gaming Commission’s Racing Cash Fund.
His bill also lifts a prohibition on sports bets on in-state colleges and allows for collegiate prop bets on teams and individuals.
To legalize online sports betting, Bostar also introduced LR3CA, which would place the fate of an online sports betting bill in the hands of state voters. The legislative resolution would require a constitutional amendment to legalize online sports betting, which would have to be approved by three-fifths of the Nebraska legislature, and then approved by a majority of state voters in the November election.
Additional Sports Betting Bill Introduced
Bostar’s bill is not the only piece of sports betting legislation to be introduced during the special session. Sen. Tom Brandt (R-32) introduced LB 32 on July 26 to allow for sports bets on in-state colleges and collegiate prop bets on teams and individuals.
Brandt’s bill, which was referred to the General Affairs Committee, only applies to in-person Nebraska sports bets.
It will also have a hearing on Wednesday, July 31.
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In a special session of the Nebraska Legislature, two sports betting bills have been proposed that could potentially legalize sports betting in the state. The bills, LB 560 and LB 561, aim to regulate and tax sports betting in Nebraska, following the Supreme Court’s decision to allow states to legalize sports betting in 2018.
LB 560, introduced by Senator Justin Wayne, would allow for sports betting at licensed casinos, racetracks, and online platforms. The bill would also establish a Nebraska Gaming Commission to oversee the industry and set regulations for operators. Additionally, LB 560 includes provisions for responsible gambling measures and consumer protections.
On the other hand, LB 561, introduced by Senator Tom Briese, takes a slightly different approach to sports betting in Nebraska. This bill would allow for sports betting at licensed casinos and racetracks, but would not permit online betting. LB 561 also includes provisions for a tax on sports betting revenue, with the funds going towards property tax relief for Nebraska residents.
Both bills have garnered support from various stakeholders, including casino operators, sports leagues, and gambling advocates. Proponents argue that legalizing sports betting in Nebraska could generate significant revenue for the state and create jobs in the gambling industry. They also believe that regulating sports betting would help protect consumers from illegal and unregulated gambling activities.
However, opponents of the bills have raised concerns about the potential negative impacts of legalizing sports betting, such as increased problem gambling and addiction rates. Some critics also argue that legalizing sports betting could lead to corruption in sports and undermine the integrity of athletic competitions.
As the debate over sports betting in Nebraska continues, lawmakers will need to carefully consider the potential benefits and drawbacks of legalizing this form of gambling. Ultimately, the decision on whether to legalize sports betting will have far-reaching implications for the state’s economy, residents, and sporting events.
