Nebraska Online Sports Betting on Hold Until 2027, Possibly Later
It won't be until at least 2027 before Nebraska sees its first sports wagering go legal online. This is due to the fact that during its special property tax relief session, which concluded on Tuesday, the Nebraska Legislature decided not to take action on authorizing internet sportsbooks.
On Tuesday, Republican governor of Nebraska Jim Pillen (L) signed legislation that will save property owners $185 million in taxes. The $185 million in relief is only 3.5% of the $5.3 billion in municipal property taxes that were collected last year, so it was a much smaller compromise than what Pillen had requested.
"This is a first step forward,” Pillen said. “More needs to be done. Together we can, and together we will.”
The new law restricts property tax increases by towns and county governments to either 0% or the rate of inflation, whichever is higher. The lawmakers decided to use $117 million in budget cuts, $46 million from state cash reserves, and $22 million from higher fees for public services and programs to pay for the relief.
Sports Betting Online Ignored
Pillen requested a special session of the state Legislature to discuss strategies to counteract the rapidly rising property taxes that homeowners are facing. The Lincoln legislative body considered allowing sports betting, which is presently only available in-person at the state's racetrack casinos, to be gambled online.
Sen. Eliot Bostar (D-Lincoln) spearheaded the drive for internet sports betting. His LR3CA was a proposed legislative referendum that aimed to find out if Nebraskans support online sportsbooks on November 5th, provided that the accompanying tax gain was directed toward property tax relief.
On August 12, the Unicameral General Affairs Committee voted 5-2 in favor of LR3CA. The entire parliament decided not to discuss the issue in the extra session.
Bostar stated that the state could have received an additional $30 million in tax income annually if casinos had been permitted to operate online sportsbooks. He proposed allocating the tax advantage from online sports betting to the state's Property Tax Credit Cash Fund.
The state shouldn't rush to further expand gambling, according to the many opponents of online sports gambling, since Nebraskans only approved three constitutional amendments in November 2020, allowing licensed horse racetracks to become commercial casinos with slot machines, table games, and retail sportsbooks.
2026 is the Next Chance
Only even-numbered elections may have statewide ballot referendums, according to the Nebraska Constitution. Thus, it follows that sports betting online won't be available until at least November 2026.
The Nebraska Racing and Gaming Commission would then need to create regulatory requirements for online sports betting, receive applications, carry out suitability assessments, and carry out premarket operations testing if Nebraskans approve an online sports betting vote in November 2026.
These kinds of assignments usually take six months or more, so the earliest that Nebraskans would be allowed to lawfully wager on sports within their state is probably in the middle of 2027.