Nebraska Online Sports Betting Bill Fails

Sen. Eliot Bostar’s bill to bring Nebraska online sports betting was withdrawn on Wednesday.

Bostar introduced bill LR20CA in January, and it initially made progress, winning approval in a 27-16 vote. However, subsequent progress would require at least 33 votes in favor. Judging that there was insufficient backing, Bostar withdrew the proposal.

The bill aimed to put the topic of legalization on the ballot in 2026. With its withdrawal, Nebraskans face a long wait before legal sports betting will be available.

Losing tax revenue

Bostarestimated that Nebraska loses out on $32 million in tax revenue every year with its current legal status. The state legalized sports betting at brick-and-mortar sites in 2020, with its first sites opening in 2023.

Bostar commented, “I introduced this not because I think gambling is a great thing, not because I want everyone to do it, not because I think you should like it, or anyone should, but fundamentally because it’s already happening. Our prohibition on mobile sports betting here in the state of Nebraska is not stopping anyone from engaging in that activity.”

Neighboring Iowa has legal online sports betting, and many Nebraskans go over the border to place bets on their mobiles. The funneling of money to their neighbor particularly irked the Senator.

He tried to stimulate support among dissenters by channeling state pride, stating, “I don’t want you to like sports betting, but I would hope that you would find an offense in us giving our money away to Iowa.”

Iowa legalized online sports betting in 2019 and has seen revenue grow year-on-year. In 2019 and 2020 the state collected £1.3 and $1.8 million respectively. This soared to $45 million last year after a record-breaking $2.6 billion was wagered.

That revenue comes at the lowest tax rate in the country, just 6.75%. Nebraska could bring in significantly more if it approved a higher tax rate. New York, for example, taxes at 51% and became the first state to collect over $1 billion in sports betting tax revenue last year.

Nebraska online sports betting unregulated

Failure to make progress in the legislative session means online gambling will remain unregulated. As Bostar points out, it does not stop the activity, but just moves it to other states or unlicensed operators.

Prediction markets have expanded their sports betting offerings. Kalshi recently moved into NBA, NHL, and MLB match markets, and are proud to declare they offer “legal sports betting in all 50 states.”

Crypto betting sites, social and sweepstakes casinos, and offshore sportsbooks also offer Nebraskans alternative betting options.

Opponents argue that legalization would vastly expand the number of bettors, particularly young men. The Nebraska Family Alliance has been active in opposing any legislation and commented, “State-sanctioned predatory gambling produces nothing but can take everything. It ruins marriages, destroys families, fleeces the poor, bankrupts communities, raises crime, creates corruption, makes false promises, distorts reality, and deceives the public.”

Evidence suggests that legalization expands the overall market but reduces the unregulated markets. It is a balancing act for states to decide what they feel is most important. For now, Nebraskans will continue to use the Iowa cornfields, VPNs, and prediction markets to get their betting fill.