Nebraska Online Sports Betting Bill Moves to Senate Floor

Nebraska voters to decide on online sports betting has advanced to the full Senate floor. LR 20CA, introduced by Sen. Eliot Bostar, seeks to amend the state constitution to permit digital sports wagering.

The proposal, which aims for a spot on the 2026 ballot, would authorize up to six online sportsbooks in partnership with licensed racetracks. If approved, tax revenue from online betting would primarily the Nebraska Environmental Trust Fund and state education.

Legislative Progress and Hurdles

The General Affairs Committee approved LR 20CA on March 17 with a bipartisan 6-2 vote, signaling momentum for the measure. Despite the advancement, the bill must secure a two-thirds majority in three separate votes within Nebraska’s unicameral legislature to proceed further. Given the state’s historical hesitation toward gambling expansion, its path to the ballot remains uncertain.

Retail sports betting was legalized via referendum in 2020, but online betting was excluded from the final legislation. Nebraska’s first retail sportsbook launched in 2023. Meanwhile, neighboring states, including Iowa, have already established robust online wagering markets, a factor often referenced in legislative debates.

Concerns Over Industry-Led Ballot Initiative

Some lawmakers who remain skeptical of online sports betting still voted in favor of advancing LR 20CA, citing concerns that the gambling industry could push for a less restrictive initiative if the legislature fails to act.

“I’ve got a lot of heartburn about mobile sports betting,” said Sen. John Cavanaugh. “But if we don’t do this, they will put it on the ballot. And it will be more expansive than this.”

Committee Chair Sen. Rick Holdcroft echoed similar concerns, noting that a Nebraska casino executive warned him the industry would pursue a ballot initiative independently if lawmakers did not take action. Similar efforts have succeeded in other states, including Missouri, where voters approved online sports betting in a narrow vote following an industry-funded campaign.

Public Opposition and Economic Justifications

Public hearings have highlighted strong opposition to the proposal. During a recent session on March 10, only three testimonies ed the amendment, while 51 opposed it. Critics argue that legalizing online betting could exacerbate problem gambling and have a limited economic impact.

Despite the opposition, Bostar emphasized the financial benefits of regulating online wagering. Estimates suggest Nebraska loses approximately $32 million annually in potential tax revenue to illegal markets and cross-border wagering.

According to GeoComply, Nebraska recorded 83,000 regulated sportsbook s in the past year, marking a 63% increase. The company also reported that approximately 42,000 individuals left Nebraska to place wagers in states with legal online betting, with 92% heading to Iowa.

“If we were the first out of the gate here or our neighbors weren’t doing it, I would be on the opposite side,” said Bostar. “But this is what people are doing … Let’s not leave this money on the table or have it go to Iowa for another two years.”

If the legislature approves LR 20CA, Nebraska voters will decide its fate in 2026. Should the measure , online sportsbooks could launch in the state by 2027. The bill allows for up to six sportsbook operators to be d with Nebraska racetracks.

While the legislative session ends on June 9, the proposal could carry over into 2026, allowing additional time for further debate and refinement before reaching voters.

Source:

‘’Will Nebraska introduce online sports betting?’’, cbssports.com, March 19, 2025.