Online Betting In The Balance as Nebraska Hears Testimony

Nebraska legislators heard testimony on Legislative Resolution 20CA, a proposed constitutional amendment that could allow Nebraskans to vote on legalized online sports betting in the state.

Senator Eliot Bostar, the bill’s primary sponsor, has suggested the proposal is a significant financial opportunity for the state. Bostar commented: “Nebraska is currently missing out on a $1.6 billion online sports betting industry and about $32 million in annual tax revenue.”

“Instead of allowing those dollars to flow into states like Iowa, Colorado and Kansas, we should regulate it, tax it, and use it to benefit Nebraskans,” he continued.

Sports betting has been legalized across many states since the repeal of PASPA, and states such as New York have generated billions in tax receipts for the state. One area that remains untouched by lawmakers is crypto betting. Despite the new President Trump legislation being vehemently pro-crypto, deregulation has yet to gain pace and widespread adoption is far from being realized.

Sports Betting Advocates Argue Revenue and Regulation Vital

Proponents of the bill told legislators that there is a strong demand for online sports betting in Nebraska. Geolocation firm GeoComply’s data found that 3.9 million attempts were made from within Nebraska to access regulated sports betting sites in other states during the last American Football season. In addition, 92 percent of border crossings for the purpose of sports betting were made in neighboring Iowa, where mobile wagering is legal.

Lance Morgan, CEO of WarHorse Casino, which operates retail sportsbooks in Lincoln and Omaha, argued: “We’re trying to regulate what’s already happening. Right now, they cross into Iowa, and Iowa gets their tax money and the revenue associated with it.”

Unsurprisingly, the bill also has the support of large sportsbook operators such as DraftKings and BetMGM. Sarah Meuli, DraftKings’ Government Affairs Manager, noted: “Five years ago, your constituents overwhelmingly passed in-person sports betting. That enthusiasm has only grown.”

Any legislative debate about sports betting wouldn’t be complete without a discussion of consumer protections, age verification, responsible gambling measures, and anti-money laundering policy, which are posited as advantages of legalized online sports betting over the continued growth of unregulated operators.

Negative Impact on Families Say Nebraska Opponents

Vocal opponents of the expansion in Nebraskan gambling legislation used familiar anti-gambling legalization arguments. The arguments were broadly themed around an increase in addiction, financial hardship, and a net negative societal impact.

Nate Grasz, Executive Director of the Nebraska Family Alliance warned that legalization would disproportionately target problem gamblers and families.

“The only thing you heard from proponents today was money. Nothing about what’s best for families and kids, and nothing about how more than 50 percent of online gambling revenue comes from addicted gamblers,” argued Grasz.

Pat Loontjer, the Executive Director of Gambling With The Good Life, raised concerns over inflated revenue projections and lack of tax impact. “It’s been five years, and I don’t know how many of you have had your property taxes reduced. But no one that I’ve ever met. It’s a lie,” he quipped. Tax from casino gambling revenue was promised to go towards property tax relief, but none has materialized.

Furthermore, West Virginia, which has a similar population size and sports market, generated around $10 million annually from online sports betting revenue at a 10 percent tax rate. The projection of $32 million in revenue from the bill sponsor would be based on a 20 percent tax rate, but many argue that the predictions are too optimistic.

For Nebraskans seeking positive news on legalization, Sen. Bostar suggested it has a 60 percent chance of moving through the Committee. The next stage would be approval from the floor; only then could its citizens see the question on the 2026 ballot.