Special Legislative Session Could End with Legalization of Nebraska Online Sports Betting

Could Nebraska online sports betting be on the fast track to legalization? 

As the result of a somewhat stunning twist of events, it just might be.

Legislators in The Cornhusker State began a special legislative session at the end of July. While more than one matter cracked the docket, a bill that would legalize online sports betting in the Nebraska was reportedly at the forefront of their agenda.

This development is catching many in the industry by surprise. Though local tribes have been prepping to Nebraska online sports betting to eventually receive the stamp of approval, there’s little that has suggested legalization could be imminent. 

For starters, support on the matter has seemed split. The state and its tribal operators clearly valued keeping all potential revenue in-market. Allowing various online sportsbooks in the United States to enter the region stands to cut into casinos’ market share and, by extension their profit.

On top of that, the process of recalibrating existing gaming laws has typically moved along slowly in The Cornhusker State. Remember, Nebraska sports betting was legalized all the way back in 2021. However, it did not officially launch until June 2023. 

Sure, the path to Nebraska online sports betting legalization always figured to be quicker if and when it picked up momentum. The state now has a sports gambling infrastructure in place. But green lighting legal online sports betting less than one year after rolling out an on-site model specifically negotiated and approved ages ago would be a truly unique occurrence.

What’s driving the urgency behind this discussion? And what details from the conversation are trickling out? Let’s find out.

What Would the Legalization of Nebraska Online Sports Betting Look Like?

Initially, it appeared as if The Cornhusker State’s special session was being held to tackle the issue of alleviating property taxes in the region. However, Senator Eliot Bostar wound up introducing LB 13 on the very first day they convened. Despite containing other details, it is anchored by a constitutional amendment that would legalize Nebraska online sports betting.

Here’s Legal Sports Report’s Pat Evans with more details on the initiative’s contents:

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

The bill reportedly has the support of Nebraska Governor Jim Pillen. In fact, Pillen has previously stated he would have introduced a Nebraska online sports betting bill in 2025 at the next round of legislative meetings. But Senator Bostar seized the opportunity to nominate one of his own once the special session was put on the books.

Why is The Cornhusker State Attempting to Pass Online Sports Betting Now?

This entire process has a zero-to-100 feel to it. Nebraska online sports betting may have been on the state’s radar, but LB 13 is being approached with a real sense of urgency. What gives?

Well, first of all, there’s the timing. A constitutional amendment to legalize Nebraska online sports betting will require voter approval during a general election. If the state doesn’t have a proposal ready to rock by November 2024, it won’t get another opportunity to elevate the issue until November 2026. That’s a big difference.

While this explains the urgency, it doesn’t shed much light on the rushed, if not outright sudden, interest. And as it turns out, there’s an easy answer here, too.

Governor Pillen called the special session to increase what he calls, as noted by Evans, the state’s “sin” taxes. Gambling falls under this umbrella. And though the agenda could technically feature strictly tax hikes on retail sports betting, that approach doesn’t make much sense. Raising taxes after less than a year is bound to receive push-back, and it would leave in-state operators like tribal casinos to foot the bill. Allowing these casinos to partner with corporate sportsbooks increases accessibility for residents and state revenue without denting the tribes’ business model. 

For what it’s worth, Governor Pillen seems to think generating more tax revenue off industries such as Nebraska online sports betting would significantly help cheapen the very property taxes his office is trying to lower. The question is…

So, Is Nebraska Online Sports Betting Officially Fast-Tracked Toward Legalization?

A definitive answer to this question is not yet on the table. 

The special session convened more than two weeks ago. Since then, details of the Nebraska online sports betting initiative have trickled out. The support behind it, on the other hand, is more of a mystery.

Zoom out, and it sure seems like the bill’s shot at appearing on the voter ballot is pretty good. It has the backing of the governor, after all. 

Still, we’ve yet to see or hear anything about where tribes stand. They have no doubt been preparing for an eventual Nebraska online sports betting launch. But the four casinos that offer retail wagering most likely assumed a prospective rollout would be years away.

This latest development considerably accelerates that timeline. And it remains tough to envision it passing through legislators if the tribes aren’t on board. Indeed, their impressions of this bill could make or break the entire issue. Only time will tell. 

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