Nebraska Online Sports Betting on Hold Until 2027, Possibly Later

Posted on: August 21, 2024, 02:46h. 

Last updated on: August 21, 2024, 03:01h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

The first legal online sports bet in Nebraska won’t be made until at least 2027. That’s because the Nebraska Legislature opted not to act on authorizing online sportsbooks during its special property tax relief session that wrapped up on Tuesday.

Nebraska online sports betting
Nebraska Gov. Jim Pillen signs a $185 million property tax relief measure into law on Tuesday, Aug. 20, 2024. State lawmakers folded on online sports betting, which was considered as a possible remedy to assist homeowners with their annual tax bills. (Image: Lincoln Journal Star)

Nebraska Gov. Jim Pillen (R) signed legislation on Tuesday that provides $185 million in tax relief to property owners. It was a trimmed-down compromise from what Pillen asked for, as the $185 million in relief represents just 3.5% of the $5.3 billion in local property taxes that was collected last year.

This is a first step forward,” Pillen said. “More needs to be done. Together we can, and together we will.”

Under the new law, municipalities and county governments are limited to increasing property taxes based on the inflation rate or 0%, whichever is greater. The legislature agreed to fund the relief through $117 million in budget cuts, $46 million in state cash reserves, and $22 million from increasing fees on state programs and services.

Online Sports Betting Left Out

Pillen called the state Legislature back for a special session to find ways to offset skyrocketing property taxes for homeowners. The Lincoln lawmaking body mulled expanding sports betting to the internet, currently limited to in-person wagering at the state’s racetrack casinos.

The online sports betting push was led by Sen. Eliot Bostar (D-Lincoln). His LR3CA was a proposed legislative referendum that sought to ask Nebraskans during the November 5 election if they support internet sportsbooks, so long as the associated tax benefit would be allocated for property tax relief.

LR3CA passed the Unicameral General Affairs Committee by a 5-2 vote on August 12. The full chamber opted not to take up the matter during the special session.

Bostar said allowing casinos to run online sportsbooks could have delivered the state with more than $30 million a year in new tax revenue. He suggested that the online sports betting tax benefit go to the state’s Property Tax Credit Cash Fund.

The many opponents to online sports gambling said the state shouldn’t be in a rush to further expand gambling, as it was only November 2020 when Nebraskans approved three constitutional amendments to allow licensed horse racetracks to become commercial casinos with slot machines, table games, and retail sportsbooks.

2026 is Next Opportunity

The Nebraska Constitution limits statewide ballot referendums to even-numbered elections. That means online sports betting will remain offline until at least November 2026.

If Nebraskans ratify an online sports betting referendum in November 2026, the Nebraska Racing and Gaming Commission would then need to formulate regulatory conditions for online sports betting, field applications, conduct suitability checks, and execute premarket operations testing.

Such tasks typically take six months or longer, meaning the earliest Nebraskans will be able to place a sports bet legally inside their state is presumably around mid-2027.