Nebraska Online Sports Betting Legalization Faces New Obstacles

While voters will have the opportunity to approve it on an upcoming ballot, Nebraska may not have legal mobile sports betting until 2027.

Ryan Butler - Senior News Analyst at Covers.com
Ryan Butler ? Senior News Analyst
Aug 19, 2024 ? 15:59 ET ? 4 min read
Nebraska Cornhuskers players
Photo By - USA TODAY Sports

Nebraska sports bettors may not have access to legal online sportsbooks until at least 2027 – if not later.

Lawmakers advanced a proposal last week that would allow voters to approve mobile sports betting on an upcoming ballot. But an amendment included in the bill pushes this provision back past this fall’s election. 

The next opportunity would be the 2026 midterm ballots, but even that longer timeline is in question.

13 of the state’s 49 elected members released a formal opposition letter on Aug. 16. With a significant chunk of the Nebraska Legislature opposed to sports betting expansion, it could be difficult to advance any proposal.

Nebraska sports betting background

Nebraska has traditionally been one of the more conservative, anti-gambling states, making any expansion effort difficult.

Despite these political leanings, Nebraska voters approved commercial casino expansion in 2020 at the state’s thoroughbred horse tracks. That allowed each property to offer “Las Vegas style” casino offerings such as table games, slots, and in-person sportsbooks.

Proponents pushed for mobile sports betting expansion during a special legislative session last month to lower property taxes. Advocates argued that mobile sports betting is another tool to generate revenue.

Still, opposition remains. Though mobile sports betting would likely generate millions of dollars in new annual tax revenues, it would still make up a minuscule portion of the state’s overall budget. Multiple members of the legislature have spoken out against any form of gambling expansion during this special session, arguing that it would lead to gambling addiction and other societal ills.

Legendary former University of Nebraska football coach Tom Osborne, who also represented the state in the U.S. House of Representatives, has been an outspoken opponent of sports betting expansion.

If advocates can advance the online sports betting authorization measure this summer, it will be taken up again by lawmakers when they return for the regular session scheduled for January. From there, they would still have to approve the regulatory framework and set it for a future ballot.

This would mean no vote until fall 2026 and no potential for the first books to launch until 2027.

Current Nebraska sports betting landscape

For now, Nebraska bettors have to place bets in person at one of the horse track–casino sportsbooks. These books have some unusual restrictions, including a prohibition on wagers featuring in-state college teams but only when they are physically playing in Nebraska.

Bettors in or near Omaha, the state’s largest metro area, can also travel across the Missouri River to Iowa to place mobile sports bets.

Voters in neighboring Missouri will be able to approve statewide mobile sports betting on their ballots this fall. Other neighbors including Kansas, Colorado, and Wyoming all have legal mobile sportsbooks.

If approved in the coming years, major national brands like DraftKings and FanDuel would be the top contenders to enter the state.

Caesars operates a casino and retail sportsbook in Columbus, NE, and would also likely seek a mobile sports betting license. Other leading contenders include BetMGM, Fanatics, ESPN Bet, and bet365.

 

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Ryan Butler - Covers
Senior News Analyst

Ryan is a Senior Editor at Covers reporting on gaming industry legislative, regulatory, corporate, and financial news. He has reported on gaming since the Supreme Court struck down the federal sports wagering ban in 2018. His work has been cited by the New York Daily News, Chicago Tribune, Miami Herald, and dozens of other publications. He is a frequent guest on podcasts, radio programs, and television shows across the US. Based in Tampa, Ryan graduated from the University of Florida with a major in Journalism and a minor in Sport Management. The Associated Press Sports Editors Association recognized him for his coverage of the 2019 Colorado sports betting ballot referendum as well as his contributions to a first-anniversary retrospective on the aftermath of the federal wagering ban repeal. Before reporting on gaming, Ryan was a sports and political journalist in Florida and Virginia. He covered Vice Presidential nominee Tim Kaine and the rest of the Virginia Congressional delegation during the 2016 election cycle. He also worked as Sports Editor of the Chiefland (Fla.) Citizen and Digital Editor for the Sarasota (Fla.) Observer.

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