Legislation to expand gambling in Nebraska to include online sports betting cleared a significant hurdle on Monday, as it advanced out of committee during the legislature’s special session. The Unicameral General Affairs Committee approved LR3CA by a 5-2 vote on the 10th day of the special legislative session convened by Gov. Jim Pillen to address property tax reductions.
LR3CA is a proposed legislative referendum designed to allow the 49 elected senators in Nebraska to seek voter approval for amending the state constitution to permit online sports betting. The measure aims to place a gaming question on the November 5 presidential election ballot, asking Nebraskans if they wish to expand gambling in the Cornhusker State. This follows four years after Nebraska voters sanctioned commercial casino gambling at horse racetracks and established regulations for slot machines, table games, and in-person sports betting.
Sen. Eliot Bostar, representing Lincoln, introduced LR3CA, arguing that the state should benefit from the tax revenue generated by the numerous Nebraskans who already engage in online sports betting through neighboring states with legal internet sportsbooks or illegal offshore websites. Bostar estimates that sanctioning online sports betting and imposing a 20% tax on gross sportsbook revenue could yield over $30 million annually for Nebraska. His proposal suggests channeling this revenue into the Property Tax Credit Cash Fund.
During the committee’s review of the referendum statute, members opted to retain control over whether Nebraska will proceed with online sports betting should the referendum pass. While Bostar’s original draft mandated the legislature to establish regulatory conditions for online sportsbooks if the public supported the ballot question, the bill was amended to give the legislative body the option, not the obligation, to authorize internet sportsbooks.
“It keeps power in the hands of the legislature, allows voters to speak on it, and then lets the legislature decide,” explained Sen. John Cavanaugh of Omaha, who sponsored the amendment.
Currently, Nebraska’s gaming laws stipulate that sports bets must be placed in person at the state’s brick-and-mortar commercial casinos. The potential $32 million annual tax revenue from online sports betting, however, would offer limited relief compared to the $5.3 billion in property taxes collected from homeowners last year.
Lawmakers are focusing on measures that promise more substantial relief during this special session. Gov. Pillen has urged the legislature to pass bills aimed at reducing government spending and eliminating over 100 tax exemptions, potentially generating an additional $350 million annually for the state.
Given the legislature’s priorities, online sports betting is expected to take a back seat. Unless the Bostar bill gains widespread support, Nebraskans will likely not see a referendum on online sports betting until at least November 2026, as statewide ballot referendums are only allowed during even-numbered years.
