2 weeks Ago By Josh Reyes Omaha World-Herald
LINCOLN — A measure to let voters decide if Nebraskans should be able to participate in online sports betting received first-round approval in the Legislature Monday, but the result indicated an uphill battle ahead of the legislation. State Sen. Eliot Bostar of Lincoln proposed Legislative Resolution 20CA to put online sports betting to a statewide vote in November 2026.
He said Nebraskans already use VPNs, drive over to Iowa or use some other method to gamble on sports, and the state should collect its fair share of the revenue. If the Legislature does not put the measure on the ballot, the operators would put the initiative on ballots themselves, set a lower tax rate and limit the state's revenue, he said. "Your green vote today empowers the voters of Nebraska to make a decision for themselves to determine whether regulated online sports wagering is right for Nebraska, especially when it comes with millions of dollars in property tax relief.
It also ensures the Legislature retains the authority to determine the terms, conditions and regulations under which mobile sports betting could be permitted in Nebraska," Bostar, who also introduced this legislation in 2024, said. He estimated online sports gambling would generate $32 million in new tax dollars per year, and most of it would go to property tax relief. Nebraska's tax rate on gambling revenue is 20%.
Bostar said the industry would pursue a rate closer to Iowa's 6.75%. Opponents of the measure included Sen.
Brad von Gillern of the Omaha area and Robert Clements of Elmwood, the chairs of the revenue and appropriations committees respectively. The state is staring down a $289 million budget shortfall and seeking new revenue to fill the gap. Still, von Gillern and Clements said the pitfalls of problem gambling outweighed the expected influx of dollars.
Bostar's resolution got 27 votes — two more than needed to advance but six votes short of the total needed to overcome a filibuster, which von Gillern indicated may be in store for the second round of debate. That's also three short of the 30 it would need to get on the ballot at the third round of voting. Six senators were present or excused not voting Monday.
Much of the opposition focused on stories and studies about the financial struggles people have faced because of gambling addiction. They also called advertising strategies to get bettors to start and keep playing predatory, particularly targeting young men. "This does not come for free.
This is property tax relief at a great expense, folks. We cannot gamble the lives of our young people away," von Gillern, who attempted to postpone indefinitely Bostar's resolution, said. Sen.
Jared Storm of David City predicted that increased access to betting would hit hard among college students, gambling away money they need for school costs. The University of Nebraska launched a website this year along with an education campaign geared at teaching students about responsible decision-making while gambling. State leaders outside of the senate chamber have weighed in as well.
Sen. Rick Holdcroft of Bellevue read a letter advising against advancing gambling that State Auditor Mike Foley, former Gov. Kay Orr, former Rep.
Tom Osborne and Sen. Pete Ricketts signed. Meanwhile, a member of Gov.
Jim Pillen's staff told the World-Herald in an interview about the state's budget shortfall that the governor is interested in the sports betting proposal. Sen. Tom Brandt of Plymouth said concerns over adults choosing to bet made him feel "Nebraska is becoming kind of a nanny state.
" He said people should be able to vote on an issue and potentially decide for themselves if they want to participate. Sen. Jason Prokop of Lincoln prioritized the resolution and said gambling is an entertainment choice on which most participants spend reasonable amounts of money.
In a March public hearing , representatives of Warhorse Casino and the large online betting operators testified in support of the resolution. They said their service advises users that betting is meant to be fun and warn that bettors are more likely to lose than to win. Sen.
Ben Hansen of Blair said if the voters do legalize online sports betting, the state can take steps to address the problems that come with it. He suggested putting some of the revenue to education efforts and regulating the way companies can advertise their apps, similar to regulations for cigarette ads and packaging..
