The Nebraska legislature concluded its special session on August 20th, 2024, without addressing the potential legalization of digital sports betting. Despite spending over three weeks focusing on property tax relief, lawmakers did not take up discussions on a proposed constitutional amendment that would have paved the way for online sports betting in the state. Governor Jim Pillen, who had convened the special session primarily to tackle Nebraska’s high property taxes, signed several other related bills into law, but the issue of sports betting remains unresolved until at least 2025.
Missed Opportunity for Digital Gambling Expansion in 2024
This special session was likely the last chance in 2024 for Nebraska to advance digital gambling legislation. The year has been notable as the first since 2018, following the repeal of the Professional and Amateur Sports Protection Act (PASPA), where no U.S. state has moved forward with new sports betting laws. In Nebraska, the introduction of digital sports betting was seen as a critical component of broader tax relief efforts, given the state’s high property tax rates, which are among the top ten in the nation. The state’s homeowners face a median property tax rate of 1.61%, with the revenue largely funding public education.
Senator Eliot Bostar had introduced two key pieces of legislation at the start of the session: LR 3CA, a constitutional amendment, and LB 13, a framework bill for legalizing online sports betting. However, as the session dragged on, it became increasingly clear that these proposals would not be brought to the floor for debate. Industry insiders indicated late last week that hopes for passing the amendment were fading, and by the time the session ended, the issue had been shelved.
Legislative Hurdles and Opposition
One of the significant challenges to advancing online sports betting came from opposition within the legislature. On Friday, 13 senators publicly criticized the effort to legalize digital wagering, labeling it a “poison pill.” This opposition, combined with a lack of urgency among other lawmakers, ultimately prevented the issue from being addressed.
Senator Bostar has expressed concerns about the financial implications of this delay. He estimates that Nebraska is losing out on approximately $32 million in annual tax revenue due to the absence of legal online sports betting. Under his proposal, 90% of the revenue from sports betting taxes would have been directed towards the state’s property tax relief fund. With the postponement of any action on this front, Bostar believes the state stands to miss out on around $100 million in potential tax revenue by the time voters might consider the issue in 2026.
Future Outlook for Nebraska Sports Betting
Currently, sports betting in Nebraska is limited to in-person wagering at four physical locations, which collectively contributed nearly $2 million in taxes during the last fiscal year. However, this is a small fraction of what could be generated through legalized online betting. The state directs 70% of its gambling revenue to property tax relief, highlighting the significant role that expanded sports betting could play in alleviating the state’s tax burden.
As the special session concludes without progress on this issue, the next opportunity to address digital sports betting will come in 2025, when the legislature reconvenes in January. Governor Pillen has already signaled his support for making sports betting a priority in the new year, but any successful effort will require a renewed push from lawmakers and the support of a broader legislative coalition.
Nebraska’s journey toward legal sports betting has been a long and challenging one. In 2020, voters approved a referendum to legalize “games of chance,” which included sports betting. However, the subsequent regulatory framework failed to address digital wagering, leaving the status of online sports betting in a legal gray area. As lawmakers prepare for the 2025 session, they will need to revisit these issues and consider the potential economic benefits of bringing sports betting into the digital age.
Source:
“Last chance for US gambling expansion in 2024 dies in Nebraska“, igamingbusiness.com, August 20, 2024.