Nebraska to Vote on Constitutional Amendment for Legalizing Online Sports Betting

Nebraska is on the cusp of potentially revolutionizing its stance on online sports betting. State lawmakers are deliberating whether to put a constitutional amendment on the ballot this November, allowing Nebraskans to engage in mobile sports wagering—a move that promises to alleviate the hefty property tax burden. Scheduled for a legislative session on July 25, this proposal could generate a substantial $30 million annually in state revenue, dedicated to property tax relief. Championing this initiative is Ho-Chunk Inc., which operates WarHorse Casinos across Lincoln, Omaha, and South Sioux City. Lance Morgan, the CEO, emphasizes that this revenue would serve as an additional income stream rather than merely shifting taxes around, further bolstered by polling results indicating a robust 65% public support for the measure.

State Senator Terrell McKinney is another prominent voice advocating for this change, highlighting the exodus of Nebraskans to Iowa to legally place sports bets. This, he argues, underscores the need for Nebraska to catch up, lest it continue to lose significant revenue to neighboring states. Governor Jim Pillen, despite his personal reservations about online gambling, acknowledges the fiscal benefits it could offer, potentially aiding his ambitious goal of slashing property taxes by half—a target that necessitates

—

If the Nebraska Legislature votes in favor of the proposal during the special session, it will pave the way for voters to decide on the constitutional amendment in the upcoming November ballot. This development arrives nearly a year after the state first allowed retail sports betting, with WarHorse taking the state’s initial legal wagers. However, the current arrangement confines sports betting to physical locations within licensed casinos, which although beneficial for driving traffic there, is seen as cumbersome by many and often pushes people towards offshore betting options. The move to online sports betting would modernize and streamline this process, making it more accessible for a larger segment of the population.

Moreover, the state’s legislative efforts earlier this year, spearheaded by State Senator John Lowe, targeted the regulation of skill gaming machines with a 5% tax on net profits and specific fees per machine. This initiative sought to mitigate the societal impact of these gaming machines while contributing to property tax relief and enforcement measures. As Nebraska considers expanding its gambling horizon, the focus remains not only on revenue generation but also on ensuring responsible gaming practices. This balance of innovation and regulation aims to create a sustainable gambling environment that benefits both the state and its residents.