The first legal online sports bet in Nebraska won’t occur until at least 2027 due to the Nebraska Legislature’s decision not to authorize online sportsbooks during its recent special property tax relief session, which concluded on Tuesday.
Nebraska Gov. Jim Pillen signed a $185 million property tax relief measure into law on August 20, 2024. This legislation was a scaled-down version of his original request and represents just 3.5% of the $5.3 billion in local property taxes collected last year. “This is a first step forward,” Pillen stated. “More needs to be done. Together we can, and together we will.”
The new law imposes a cap on municipalities and county governments, limiting property tax increases to the rate of inflation or 0%, whichever is greater. The relief will be funded through $117 million in budget cuts, $46 million from state cash reserves, and $22 million from increased fees on state programs and services.
During the special session, there was a push to expand sports betting to the internet, led by Sen. Eliot Bostar of Lincoln. His proposal, LR3CA, aimed to place a referendum on the November 5 ballot asking Nebraskans if they supported internet sportsbooks, with the understanding that the tax revenue would aid in property tax relief. LR3CA passed the Unicameral General Affairs Committee with a 5-2 vote on August 12 but was not taken up by the full chamber.
Bostar argued that allowing online sportsbooks could generate more than $30 million annually in new tax revenue, which he suggested aligning with the state’s Property Tax Credit Cash Fund. However, opponents argued that Nebraska shouldn’t rush to expand gambling, noting that it was only in November 2020 that voters approved constitutional amendments permitting licensed horse racetracks to become commercial casinos with slot machines, table games, and retail sportsbooks.
The Nebraska Constitution restricts statewide ballot referendums to even-numbered election years, meaning the next opportunity for Nebraskans to vote on online sports betting will be in November 2026. If the referendum is approved, the Nebraska Racing and Gaming Commission will then need to establish regulatory conditions, process applications, conduct suitability checks, and test premarket operations. This process typically takes six months or longer, suggesting that the earliest Nebraskans could place a legal online sports bet would be mid-2027.
