Nebraska Sports Betting Could Go Online Under Proposed Special Session Bill

As legislators in the Cornhusker State kicked off a special session Thursday, an online Nebraska sports betting bill was among the first pieces of legislation filed as lawmakers work to lighten property taxes.

Sen. Eliot Bostar introduced LB13 during the first day of Nebraska’s special legislative session called by Gov. Jim Pillen. The bill, and an accompanying constitutional amendment, would legalize online Nebraska sports betting, an expansion Pillen supports.

In-person sports betting in Nebraska began in June 2023. It is only available at four casinos.

Change to Nebraska sports betting
Bostar’s legislation amends existing sports betting law to include online sports wagering. Committee meetings for the session are slated to start Monday.

The state’s casinos each can partner with one sportsbook operator. The state taxes sports betting at 20%.

Bostar also introduced a constitutional amendment to allow for the online expansion. If it passes the legislature, voters would decide the issue in November.

Helping a gubernatorial goal
Last week, Pillen said he would introduce online sports betting as a priority bill in January if it is not discussed during the special session.

Bostar’s bill language said online sports betting will help reduce the tax liability of “property taxes paid to support public education.” Sports betting could bring the state more than $30 million in additional taxes, Lynne McNally, government relations director for WarHorse Casino, previously told LSR.

The rising cost of property taxes is the main reason Pillen called the special session.

Why a special session?
Pillen called the session to work on 16 issues. Among Pillen’s goals is raising “sin” taxes, including on gambling.

Following the regular session this spring, Pillen promised a special session and sent Speaker of the Legislature John Arch a letter informing him of the July 25 start date, according to the Associated Press. Still, after Pillen officially called the special session Wednesday, multiple Nebraska lawmakers spoke out against his short notice.

Pillen said he would call as many special sessions as it took to pass a property tax break.

Nebraska sports betting history
Nebraska legislators legalized casino gaming in May 2021 after voters approved of the issue in November 2020.

The legislation opened up the pathway for games of chance at the state’s six commercial horse racing tracks.

Through May this year, in-person sportsbooks have generated $1.7 million in revenue