Nebraska Online Sports Betting Bill is Headed to The Senate

A bill that seeks to legalize Nebraska online sports betting is officially headed to the Senate. If it gets passed, it may pave the way for The Cornhusker State to significantly increase their tax revenue from sports wagering.

Now, whether it actually receives the necessary approval remains to be seen.

Though online sports betting in Nebraska has been a longstanding subject, this latest development has flown somewhat under the radar. In fact, many people were taken aback when the Senate General Committee voted 6-2 to bring it to the Senate. They had good reason.

Policymakers last discussed Nebraska online sports betting over the summer. At the time, it lacked enough traction to get over the hump. That is the genesis of previous skepticism. Heck, it is also the source of persisting doubt as the bill, known as LR20CA, moves to the Senate floor.

Full Details of Nebraska Online Sports Betting Bill

Before we get to whether the latest Nebraska online sports betting bill can be successful, let us first take a look at what it is proposing. Jill R. Dorson breaks it all down over at iGaming Business:

“Per the proposal, digital platforms would be tethered to ‘licensed racetrack enclosures” that offer wagering. The tracks may partner with online sports betting companies such as BetMGM, Caesars Sportsbook, DraftKings, ESPN Bet, Fanatics Sportsbook, FanDuel and others. Overall, six licences would be available…Nebraska does not allow betting on its college teams when they are playing at home. In the enabling legislation to LR20CA, that restriction could be lifted, but that legislation has not yet moved forward.”

In order for LR20CA to pass through the Senate floor, it must “get a two-thirds majority on each of three votes on the senate floor to pass.” That is a high bar to clear.

It is not the only bar that must be cleared, either. Because LR20CA requires a constitutional amendment, residents will vote on the fate of Nebraska online sports betting during a general election.

For the record, this is considered a relatively minor hurdle. Nebraskans legalized retail sports betting pretty comfortably back in 2020. Given the rise of online sports betting in the United States since then, the expectation is that voters in The Cornhusker State would convey a similar sentiment when they return to the polls.

Will Nebraska Voters Ever See The Latest Online Sports Betting Proposal?

Forecasting what voters will do if presented with LR20CA is invariably too many steps ahead of the process. The bill must make it passed the Senate first.

As of now, the level of support for it can be described as ambiguous—at best. Consider what Dorson writes on the matter:

“How LR20CA will fare on the senate floor isn’t clear. According to the Kearney Hub, lawmakers advanced the measure as a defensive move. Some said they believe the industry would begin gathering signatures for its own ballot initiative if this one does not move. ‘I’ve got a lot of heartburn about mobile sports betting,’ Senator John Cavanaugh said. ‘But if we don’t do this, they will put it on the ballot. And it will be more expansive than this.’”

Senator Cavanaugh’s sentiments get into the heart of concern among Nebraska online sports betting opponents. They worry that the online element will make wagering too accessible. And this, in turn, would open the door for significant upticks in problem gambling and the socioeconomic hardships it can cause.

Make no mistake, there is merit to this concern. States that legalize online sports betting report increases in problem gambling reports. Supporters of it counter with the value of regulation. Nebraskans are already betting on sports online, they say. Legalizing it allows The Cornhusker State to add layers of consumer protection while also drumming up additional tax revenue.

The latter argument may hold more weight than the former these days. Indeed, some Nebraskans may visit offshore betting sites. But plenty of neighboring states also have legal sports betting. Residents may be more inclined to cross state lines than bet overseas. That ensures them at least some consumer protection.

Potential Timeline for the Launch of Nebraska Online Sports Betting

Even though this matter is far from settled, let us operate under the assumption that LR20CA makes it past the Senate floor. How long will it be until Nebraska online sports betting launches?

The answer: It may be quite a while.

It will be more than a year before the next general election takes place in November 2026. From there, if voters approve LR20CA, Nebraska must set up its regulatory processes and go through the licensing procedures. These steps can often take up to a year.

Then again, Nebraska is in position to speed things up. So many other states have already launched online sports betting. This gives Nebraska a ton of other blueprints to follow. Plus, it is not like they are launching from scratch. They are years into their on-site sports betting era. Many of the most important regulatory processes are already in place.

Regardless, if LR20CA isn’t legalized until late 2026, Nebraska online sports betting is unlikely to launch before early- to mid-207. And again, this assumes the measure is successful. It might not be. Just a couple of weeks ago, legislators did not think Nebraska would approve an online sports betting bill by the end of the 2025 session.

Things can always change. However, it isn’t immediately clear what’s so different for Nebraska. This proposal almost exactly mirrors discussions from the summer. Are policymakers simply having a change of heart? Is there a noticeable adaptation not yet reported? Is this truly a “defensive” maneuver? Whatever the outcome, we should know by June 2025, which is when the state legislature is set to adjourn.

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