The Key to Nebraska Online Sports Betting

It remains to be seen whether Nebraska online sports betting will be legalized in 2025. But Governor Jim Pillen is hoping it gets the stamp of approval.

And he is prepared to use the prospect of lower property taxes to do it.

How is the future of online sports betting in Nebraska intertwined with how much residents of The Cornhusker State pay in property taxes each year? Can the two really be that connected?

Let us explore.

Governor Jim Pillen Plans to Make Nevada Online Sports Betting Bill a Priority in 2025

A report from earlier this year shows that the absence of Nebraska online sports betting may have cost the state tens of millions of dollars in revenue for 2023. This is a number that seems to be getting Governor Pillen’s attention. As KMTV 3 in Omaha’s Hannah McIlree writes:

“Governor Jim Pillen announced his mast plan earlier this week to lower property taxes; one of the ways he plans to do it is with mobile sports betting. According to Ho-chunk Inc, Nebraska lost out on $32 million in tax revenue last year. ‘People have spoken, we've approved gambling…online sports betting is real and it's happening in the state. Whoever wants to do it is doing it,’ said Pillen. Governor Pillen says he's going to put forth a priority bill in January to approve mobile sports betting.”

Ho-Chunk Inc is an economic development agency that operates in Nebraska and runs the WarHorse Gaming casino located in the state. It is not clear how they came to that $32 million figure.

However, this estimation feels ambitious. Look no further than online sports betting in Kansas. They have a population of roughly 2.9 million people. That is 1 million more than Nebraska. And yet, on the year, Kansas sports betting is on track to generate $11.7 million in tax revenue.

Indeed, these numbers can be impacted by the number of winning wagers online sportsbooks in the United States must payout. But unless The Cornhusker State is planning to tax operators at an absurdly high clip, there is no discernible reason why Nebraska online sports betting would generate almost three times as much revenue as Kansas on an annual basis.

Lower Property Taxes will be the Key Selling Point for Nebraska Online Wagering Talks

This starts to explain why Governor Pillen is planning to sell Nebraska online sports betting through his property-tax plan. The bones of his argument is simple: With the extra revenue generated from mobile betting sites, it would allow The Cornhusker State to slash property taxes while still increasing state funds overall.

That reads like a win-win at first glance. At the very least, it is a blueprint that passes on savings to everyday voters. It may also open the door for more businesses in Nebraska to open or potentially expand. And that, in turn, is good for the local economy.

On its face, this is a convincing approach. Especially when projected Nebraska online sports betting revenue feels tough to pin down at best or, frankly, is inflated at worst.

Whether Governor Pillen’s plan is enough to overcome opposing views is a separate matter. Policymakers have expressed concerns about predatory practices of Nebraska online sports betting sites. Many also believe additional access will lead to more gambling upticks and financial hardships for certain customers to partake.

The counter to this, of course, is residents are betting on sports elsewhere anyway. Plenty, in fact, still use offshore sportsbooks. And as Governor Pillen would surely note, most believe a regulated online sports betting market in the U.S. is safer.

Will The Nebraska Online Sports Betting Bill Have Enough Support?

If recent events are any indication, Governor Pillen’s Nebraska online sports betting bill may have trouble getting through.

The Cornhusker State called a special session to discuss Nebraska online sports betting and other matters over the summer. It ended without an agreement that would let mobile betting sites enter the market.

That does not necessarily mean the initiative will be dead on arrival in January. The interest in Nebraska online sports betting clearly exists. And the continued rise of online sports betting throughout the United States may only help its case. With the legalization of online sports betting in Missouri, the number of places that allow mobile wagering will swell closer to 30 by the end of next year. While Nebraska does allow sports betting, their on-site-only model is quickly becoming outdated.

This is where the Ho-Chunk Inc projection starts to matter. They may overshoot the projected revenue for Nebraska online sports betting in a vacuum. But their point about Nebraskans seeking access elsewhere is salient. Not everyone in the state is within driving distance of a casino sportsbook. For many, it will be easier to cross state lines and use online sports betting in Iowa. The same goes for sports online betting in Kansas as well as online sports betting in Colorado. And again, this says nothing of how much money is being bet offshore.

Framed this way, in tandem with lower property taxes, there is a strong case for lawmakers to reconsider their Nebraska online sports betting stance in 2025. And, well, we know they will. We just do not know if that discussion will lead to the green light. One way or another, though, we’ll find out in the coming months.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: