One Nebraska lawmaker is seizing the opportunity provided by a special session of the legislature to try to get online sports betting legalized in the Cornhusker State.
Sen. Eliot Bostar introduced Legislative Bill 13 on Thursday, the first day of that special session.
According to the bill's text, it would authorize Nebraska's racinos to offer online sports betting themselves or in partnership with a mobile sportsbook operator like DraftKings or FanDuel.
The bill would also remove Nebraska's betting ban on the state’s college teams when playing games in-state. That would unlock wagering on Nebraska Cornhusker home games for sports bettors. The prohibition on college player props and in-game wagering for events involving Nebraska colleges would remain intact.
Bostar also introduced Legislative Resolution 3CA, which would put a proposed constitutional amendment before voters in November authorizing mobile sports betting. The measure needs the support of three-fifths of the legislature to pass and then a majority of voters to approve it as well.
A special opportunity
Nebraska legalized sports betting in 2021, albeit only at the state's racinos. While there are no legal online sportsbooks, a recently called special legislative session has provided an opening for some lawmakers to at least try to alter the status quo for event wagering. That follows a coalition of sportsbook operators mulling a ballot initiative of their own earlier this year, which they ultimately decided against.
On Wednesday, Gov. Jim Pillen officially called for the special session of the state legislature, which is supposed to focus on bills related to reducing property taxes.
Legislators have used the opportunity to introduce legislation that may provide relief through various avenues, including the measures that would authorize mobile sports betting. Another bill introduced on Thursday provides a legal framework for fantasy contests in the state.
“The Legislature finds that Nebraska relies more heavily on local property taxes to support public education compared to other states and consistently ranks in the top ten among all states in terms of per capita property tax burden on its citizens,” L.B. 13 states. “The Legislature further finds that is important to authorize and impose a tax upon the gross gaming of sports wagering by means of an online sports wagering platform in order to create a property tax relief program to reduce the tax liability of property taxes paid to support public education.”
Tax tweaks
In-person sports betting revenue is subject to a 20% tax rate in Nebraska, and 70% of that tax revenue is dedicated to property tax relief. However, online sports betting has proven vastly more popular for players and lucrative for other states, which means there is the potential for further property tax offsets in Nebraska if mobile wagering were authorized.
L.B. 13 also proposes to increase the percentage of sports betting-related tax receipts that would go to fund property tax reductions to 90%. Three percent of tax revenue would flow to the state's Compulsive Gamblers Assistance Fund, 3.5% would go to the Racing and Gaming Commission's Racetrack Gaming Fund, and another 3.5% would be dedicated to the Racing and Gaming Commission's Racing Cash Fund.
A clear statement outlining the effect for and against mobile sports betting would have to be submitted to the Secretary of State for certification by Sept. 1 for the general election. If passed, the bill's online wagering provisions would not take effect until Dec. 16, putting a launch in time for the Super Bowl in play.
