Bill to Legalize Online Sports Betting in Nebraska Fails to Pass

The attempts of some of Nebraska’s state legislators to legalize online sports betting have failed, at least for the time being. Following the end of the state’s special legislative session last week, it became clear that online sports betting will not be in the cards for 2024.

Sports bettors from the Cornhusker State can wager on their favorite sports markets with one of four land-based casinos. In-person sports wagering has been legal in Nebraska since May 2021. Expanding sports wagering beyond the states’ four legal land-based casinos was seen as a potential solution to resolve the local property tax issues. However, the legislative proposal failed to gain traction and would not be up for discussion until at least January 2025.

As reported by CasinoGamesPro, Nebraska ranks among the top 10 states with the highest property taxes in the nation, with proceeds being used to fund public education. Legislative Bill 13 (LB13), introduced by Nebraska State Senator Eliot Bostar, aimed to use 90% of online sports betting tax revenue for property tax relief. The legislative proposal was referred to the General Affairs Committee but failed to progress any further.

The Idea of Legalizing Online Sports Betting Meets Opposition

The idea of utilizing sports betting tax revenue to alleviate the state’s property tax issues was considered but never garnered extensive support. According to a group of 13 Republican senators, who delivered a statement last week against legalizing sports betting in Nebraska, the idea could be called a “poison pill.” The statement further read that remote sports betting “turns every cell phone into a 24/7 handheld gambling device, leading to new addictions.”

The senators maintained that expanding gambling beyond the existing land-based options would lead to proliferating problem gambling in the state. They explained that a more liberal sports betting landscape would ultimately lead to “more suffering” within the state’s communities.

Tom Osborne, former football player, coach, and Nebraska politician, has been opposing the idea of legalizing online sports betting too. He has discussed the issue publicly several times, explaining that the legalization of the industry would put too much pressure on players, especially when it comes to bets related to individual performances.

According to data for the last fiscal year, Nebraska’s four in-person casinos have generated nearly $2 million in tax revenue. Land-based sports betting is subjected to a tax of 20%. At present, 70% of that revenue is directed to property tax relief funds, as opposed to 90%, as per the aforementioned legislative proposal.

The proponents of legalizing online sports betting legalization argue that the state stands to lose millions of dollars in potential tax revenue. This is especially true considering that neighboring states provide ample opportunities for Nebraska residents to legally place wagers.