The unicameral legislature approved Sen. Eliot Bostar’s LR20CA by a margin of 27-16. The bill proposes to legalize online sports betting in the state. It would allow Nebraska’s six casinos and racetracks to partner with online sportsbooks.
The bill has many steps still to take before online sports betting becomes a reality. Now, it will move to the Enrollment and Review Initial stage. After that, it will head to Select File, where lawmakers will debate and suggest potential amendments.
If the Select File also vote in favor, it would be engrossed and head for final reading, where it would need a third and ultimate vote of approval. Gov. Jim Pillen would then have to sign it off. Finally, it would go to a ballot where Nebraskans get a chance to vote on legalizing online sports betting for the first time.
Pros and cons of online sports betting
The bill sat in the General Affairs Committee for over two months before being approved 6-2. There have been many voices against legalizing online sports betting with fears it will encourage problem gambling. There are also doubts about how much money it will raise.
The Nebraska Family Alliance opposes the bill. Executive director Nate Grasz raised concerns about teenage gambling, claiming that online sportsbooks take advantage of vulnerable young men. Another group against legalization is Gambling with the Good Life. Executive Director Pat Loontjer said state revenue from mobile sports betting was unlikely to make an impact on property taxes.
The main proponents argue that the tax revenue will be substantial. Bostar said it could raise as much as $32 million in taxes. Sports betting is legal on racetracks and casinos, and bettors wagered over $40 million last year.
The Sports Betting Alliance (SBA) supports legalization as it would allow their members to get in on the Nebraska betting action. They also claim that the majority of the public supports allowing online sports betting.
SBA lobbyist Sean Ostrow said 59% of Nebraskans would support mobile sports betting. If the tax revenue generated is used to reduce property taxes, polling data suggests 65% are in favor.
Big demand for sports betting
Nebrakasa legalized on-site sports betting in 2021, but many prefer to wager online. Neighboring Iowa has legal mobile sports betting, and many cross the border to get their bets on.
Betting Hero, an activation and research leader in the global sports betting and iGaming industries, reported 52% of Nebraska bettors have never placed bets at the legal on-site venues.
Instead, residents journey to the “busiest cornfield in America” to bet on their mobiles. Survey respondents said they would not make the trip if Nebraska offered legal online sports betting.
Prediction markets and crypto sportsbooks also fill the void of online sportsbooks. A study last week reported that Americans wager far more at these kinds of alternative betting sites compared to legal gambling.
With the proposed bill still a long way from passing, Nebraskans will have to continue using these site or the Iowa cornfields to stake their wagers.
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