Stakeholders on both sides of the online Nebraska sports betting debate had the floor Wednesday as lawmakers continued a special legislative session in Lincoln to find ways to reduce property taxes in the state.
Sen. Eliot Bostar is pushing LB13 and an accompanying constitutional amendment to expand NE sports betting beyond the current retail options. His bill calls for 90% of sports betting revenue to be directed to the state’s property tax relief fund.
“Nebraska is currently missing out on $32 million in state revenues,” Bostar said during a General Affairs hearing Wednesday. “Thousands of Nebraskans are crossing state lines and supporting those economies. The demand for sports betting is clear, and directing revenue to the property tax credit fund can create much-needed relief.”
Support for online Nebraska sports betting
Gov. Jim Pillen recently signaled his support for online Nebraska sportsbooks.
“Online sports betting is real, and it is happening in the state,” Pillen said during a press conference ahead of the special session. “Whoever wants to do it is doing it, and we’re giving all the revenue to our neighbors. I will put forth, and it will be a priority bill, in January to approve online sports betting.”
If the legislature waits until the new year to decide on online Nebraska sports betting, the question would not be put before voters until November 2026. Bostar said that timeline would cost the state $100 million in tax revenue.
GeoComply data on NE sports betting
GeoComply, which uses geofencing technology to track sports betting activity, has seen a bump in activity in Nebraska.
In the first six months of this year, the company processed more than 2 million location checks from devices located in Nebraska trying to access legal sports betting apps. The company also identified 64,000 user accounts in Nebraska, a 41% increase from the same period last year.
Danny DiRienzo, senior director of government relations at GeoComply, spoke Wednesday in favor of legalizing online NE sports betting. He said the company has seen 40,000 betting accounts travel across state lines to place bets, with more than 80% going to Iowa.
Special session conversation
Many of Bostar’s comments focused on sports betting activity crossing state lines.
He also acknowledged the need for problem gambling initiatives, with LB13 directing 3% of state collections to addiction services.
“I don’t fault anyone who is against gambling,” Bostar said. “There are issues and challenges, but Nebraskans are already doing it. We already have casino gambling, so leaving out online sports betting doesn’t make sense to me. It’s already here.”
For and against online NE sportsbooks
Several gaming industry stakeholders, including casinos and horse racing tracks, spoke in favor of LB13 at Wednesday’s hearing.
The online sports betting bill would allow bets on Nebraska-based college teams regardless of where the game is played. The current retail sports betting law prohibits betting on college games played in the state.
Those opposed to expanding sports betting, including former University of Nebraska head football coach Tom Osborne, cited aggressive marketing campaigns and the dangers of problem gambling, especially for young people.
Revenue projections questioned
Nate Grasz with the Nebraska Family Alliance challenged Bostar’s revenue projections.
Grasz said with Nebraska’s smaller population, exceeding Iowa sports betting tax collections is unlikely. In 2023, Iowa collected $13.4 million in sports betting taxes.
Bostar rebutted that sentiment, pointing out Iowa’s 6.75% tax rate on sports betting revenue compared to Nebraska’s 20% rate.
Online Nebraska sports betting bill details
No action was taken on LB13 during Wednesday’s committee hearing.
In-person sports betting in Nebraska began in June 2023 and is only available at four casinos. Bostar’s bill amends existing sports betting law to include online sports wagering.
The state’s casinos can partner with one sportsbook operator. If legislation to legalize NE sports betting apps passes the legislature, voters would decide the issue in November.
