Nebraska online sports betting bill advances despite strong opposition

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The Nebraska bill that would allow the state’s public to vote on whether to legalize online sports betting has been sent forward to the full Senate floor.

Sen. Eliot Bostar’s LR 20CA would place a constitutional amendment to allow sports wagering on the 2026 ballot. The bill proposes allowing up to six online sports betting platforms to partner up with licensed racetracks and offer digital wagering within Nebraska. Tax revenue would be dedicated mostly to the Nebraska Environmental Trust Fund and state education.

LR 20CA was passed out of the General Affairs Committee on Monday via a 6-2 vote. The proposal has bipartisan support, with three Democrats and three Republicans each voting yes.

But there’s still a long way to go. To go any further in Nebraska’s single-chamber legislature, it must secure a two-thirds majority in three separate floor votes.

Nebraska has been hesitant to adopt sports betting. Even retail sports betting only began in the Cornhusker State in 2023 after being legalized via referendum in 2020. It is surrounded by states that offer lucrative online wagering markets, a point of contention in multiple committee hearings on the issue this year.

Nebraska’s legislative session ends on June 9, although bills can carry over into 2026 if needed. That outcome is a possibility, as it would leave room for further consideration in time for the 2026 ballot.

Some opponents cede, citing fears of lack of control

As reported by Kearney Hub, even some committee members who are wary of taking sports betting mobile voted in favor of Bostar’s bill, citing fears that pro-gambling industry groups would force the issue themselves if lawmakers did not consider it.

“I’ve got a lot of heartburn about mobile sports betting,” said Sen. John Cavanaugh. “But if we don’t do this, they will put it on the ballot. And it will be more expansive than this.”

Per Kearney Hub, committee Chair Sen. Rick Holdcroft said that a Nebraska casino executive told him directly that the industry would fire up a campaign to collect signatures and put the issue on the 2026 ballot if lawmakers didn’t act. Sportsbook operators and fellow betting expansion advocates launched a multimillion-dollar campaign of that nature in Missouri last year, where online sports betting was ultimately approved by the public in a narrow vote.

Public hearing finds staunch opposition

The General Affairs Committee advanced the bill despite it being met with strong opposition during sessions in recent weeks.

At the issue’s last public hearing on March 10, the committee received only three testimony submissions in support of the constitutional amendment, in contrast with the 51 submissions that opposed it.

During that three-hour hearing, Bostar cited estimates that the state is losing out on $32 million in tax revenue annually due to the illegal market and the fact that five neighboring states offer legal online wagering.

GeoComply’s Lindsay Slader reported there were around 83,000 regulated sportsbook accounts in Nebraska at the last count, up 63% in one year. GeoComply also attributed around 42,000 border exits to people leaving the state to bet online, 92% of which were to Iowa.

“If we were the first out of the gate here or our neighbors weren’t doing it, I would be on the opposite side,” said Bostar. “But this is what people are doing … Let’s not leave this money on the table or have it go to Iowa for another two years.”

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