Online Nebraska Sports Betting A ‘Poison Pill’, Legislator Group Says


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Nebraska sports betting

More than a dozen Nebraska state senators on Friday voiced their strong opposition to an expanded sports betting proposal that has gained little traction during a special legislative session in Lincoln.

Lawmakers returned to the state capitol more than three weeks ago, charged by Gov. Jim Pillen to provide property tax relief to state residents. The General Affairs Committee advanced a constitutional amendment last week that would allow for debate on online Nebraska sports betting. However, it has not been brought to the floor.

“Nebraska very recently legalized casinos largely on the promise of property tax relief that has failed to manifest itself,” the statement, signed by 13 lawmakers, reads. “Expanding gambling further will inevitably lead to expanding the associated addictions and adds to more suffering in our communities.”

Online Nebraska sports betting opposition

Sen. Eliot Bostar introduced the constitutional amendment and the accompanying framework bill, LB 13, at the start of a special session that began July 25.

He said the absence of NE sports betting apps costs the state $32 million in tax revenue annually. Bostar’s bill calls for 90% of sports betting revenue to be directed to the state’s property tax relief fund. Opposing lawmakers cited addiction risks in their joint statement.

“Online sports betting turns every cell phone into a 24/7 handheld gambling device, leading to new addictions. The National Council on Problem Gambling reports the legalization of online sports betting has resulted in the risk of gambling addiction increasing 30%, with a 150% increase to their addiction helpline. The main demographic driving this increase is young people, with 20% of college students spending financial aid on gambling.

“Any effort to expand gambling further or legalize online sports betting, be it a Constitutional Amendment or a statutory end-run, is a poison pill and will lose our support for the bill.”

Who opposes NE sports betting?

The group of senators opposing the deal includes:

Priority bill coming in January

Even if the current special session ends without mobile sports betting, Gov. Pillen does plan to issue a priority bill in January to legalize online NE sportsbooks.

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.

Voters legalized casino gambling, including in-person Nebraska sports betting, through a referendum in 2020. In the latest fiscal year, which ended on June 30, the state collected nearly $2 million in combined tax revenue from the four retail sportsbooks.

GeoComply, which tracks sports betting location trends, told the General Affairs Committee last month that tens of thousands of Nebraskans are crossing state lines to bet on sports.

Nebraska special session debate

Lawmakers have discussed multiple ways to reduce property taxes during the special session.

The debate has focused mainly on cutting government spending, imposing a property tax cap on local governments, and changing sales tax laws.

Industry sources suggest the online Nebraska sports betting bill is currently on life support, and the governor’s priority bill in January likely stands a better chance.

LSR reporter Pat Evans contributed to this story.

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