Nebraska Sports Betting Unlikely to Add Online Legalization in 2025

It is starting to seem like the Nebraska sports betting market will not be adding online operations to its portfolio in 2025.

For many, this comes as at least a miniature surprise. State officials held a special hearing this past summer during which they discussed the merits of legalizing online sports betting in Nebraska. Though the session ended without an agreement, holding an unscheduled meeting on the matter was seen as progress. Some even interpreted it as a harbinger of inevitable approval.

However, as The Cornhusker State prepares to reconvene its legislature meetings to close out February, the appetite for online sports betting legalization is apparently wavering. This general sentiment can obviously change in the coming weeks and months. But will there be enough support and traction to bring online wagering to the Nebraska sports betting market? Or will another year go by without a material change?

And perhaps most importantly, what are the primary catalysts driving hesitance and outright opposition?

Impact on Gambling Problems Fueling Opposition to Nebraska Sports Betting Expansion

The biggest hangup in talks so far is the impact Nebraska online sports betting will have on problem gambling. Even Senator Eliot Bostar, an advocate for online wagering, admits that it will be an issue.

“There are folks who struggle with gambling addiction,” he explains, via Ryan Luetkeymeyer of the Nebraska News Service. “It can be extremely disruptive and destructive to their livelihoods. There's no question about that.”

This isn’t necessarily what you want to hear from someone arguing for the legalization of online sports betting in Nebraska. But it is an honest assessment. Multiple studies have found the rise of online sports betting in the United States coincides with noticeable upticks in reports of problem gambling. A couple of investigations have even found Americans, on average, are saving less money and in more debt since the Supreme Court of the United States overturned the Professional and Amateur Sports Protection Act nearly seven years ago.

Granted, the latter element requires more extensive research. But the overarching takeaway is inarguable. The legalization of online sports betting throughout the United States has both plenty of upsides and downsides. It is on state officials to decide whether the benefits outweigh the drawbacks. And if they believe the good outstrips the bad, they must still be prepared to adequately deal with the fallout of that choice, both the intended and unintended consequences. 

The Biggest Argument for Online Sports Betting in The Cornhusker State Is…

…an already-existent online Nebraska sports betting market. As Bostar argues, and as Luetkeymeyer writes, residents of The Cornhusker State are finding ways to place online wagers despite the current gaming laws. Consider the following excerpt from the Nebraska News Service:

“Just across the Nebraska border on Interstate 680 near Omaha, cars pull off at the 130th Street exit, with little more than corn fields and gravel roads, to place sports wagers before heading back into Nebraska, according to Drew Niehaus, a  senior agency manager at Blue Earth Marketing. ‘Those people are coming from Nebraska,’ he says. ‘There is absolute certainty that there is an appetite for sports wagering in the state, specifically mobile and internet sports wagering.’

“‘Thousands of Nebraskans are already crossing state lines each month to bet on sports, contributing to neighboring economies,’ adds Bostar. ‘The demand for mobile sports betting is clear, and it's in our best interest to regulate and benefit from it. ‘Directing revenues from online mobile sports betting to the Property Tax Credit Fund can provide much needed relief.’”

Bostar touches upon another interesting element of this argument. Along with others, he touts the significance of how online Nebraska sports betting revenue can help lower property taxes. 

That is a compelling benefit at first glance. Statistically speaking, though, fewer and fewer people count themselves as homeowners. More and more are renting. Decreased property taxes may not directly benefit from them.

Moreover, some of the most successful online sports betting campaigns in the United States focus on sending additional money toward the educational system. Perhaps it makes sense for Bostar and other officials driving the online sports betting train to refocus where revenue is directed.  

One Way or Another, the Fate of Nebraska Online Sports Betting will be Determined Soon

To be sure, it isn’t clear whether funneling money toward educational programs would sway enough members of the Nebraska House and Senate. We are just working off baselines set in other states. 

Regardless, an answer is soon coming in some form. The Nebraska state legislature adjourned until February 18. When they reconvene, the online sports betting push will presumably be a focus. And the type of momentum it gains (or loses) will be telltale. 

Granted, there is also a chance Nebraska sports betting expansion tumbles off the agenda altogether. But that in itself would be telltale, proving its legalization remains a ways off. 

From our vantage point, though, the complete absence of discussions would qualify as a surprise. There is clearly an interest, even if reluctantly so, among state officials. They would not have otherwise discussed online sports betting legalization throughout Nebraska at an unscheduled session. That is something to which we keep coming back. 

In the end, maybe the summer discussion proves to be meaningless. Or perhaps it just served to reinforce how far away Nebraska online sports betting remains. Whatever the view inside the House and Senate, residents of The Cornhusker State should have a clearer view of what’s to come in a few months, if not weeks.

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