Nebraska’s Online Sports Betting Proposal Advances but Awaits 2026 Vote

Nebraska’s General Affairs Committee has made a significant move toward letting voters decide on the future of online sports betting, although the decision will not likely come before the public until after the November 2026 election. The Legislature took a crucial but cautious step by advancing Legislative Resolution 3CA (LR3CA), an amended constitutional amendment that, if ed, would grant the Legislature the authority to regulate digital sports wagering.

A Deliberate Approach to Online Sports Betting

On Monday, the General Affairs Committee voted 5-3 to advance LR3CA, a proposal spearheaded by State Senator John Cavanaugh of Omaha. Cavanaugh’s amendment, which garnered bipartisan , including backing from Republican State Senator Tom Brewer, seeks to keep decision-making power within the Legislature rather than handing it directly to the voters. This approach allows legislators to craft the rules governing online sports betting should voters approve the constitutional amendment in a future election.

The amendment represents a strategic “middle step,” as described by Cavanaugh and other ing senators. They believe that by first seeking voter approval to grant the Legislature constitutional authority over online sports betting, lawmakers can better regulate the industry rather than leaving it to a potential petition initiative driven by well-funded casino interests. This cautious approach would enable the Legislature to address the issue more thoroughly and ensure that proper regulations and tax policies are in place.

State Senator Jana Hughes of Seward expressed similar sentiments, emphasizing that she preferred legislative oversight and debate on the issue over an initiative that might rush the process. While Hughes and others may be uncertain about their for online sports betting, they recognize the importance of having lawmakers lead the conversation.

Senator Jane Raybould echoed the urgency of acting sooner rather than later, arguing that allowing voters to decide whether lawmakers should have the authority to legalize online sports betting is a responsible way to involve the public in the decision-making process. She cautioned against special interests potentially pushing voters to act without fully understanding the complexities of online sports gambling regulation and taxation.

Debate on Framework Legislation

Despite advancing LR3CA, the committee chose not to move forward with the companion framework legislation, LB13, which would have placed the constitutional amendment on the ballot this year. The framework bill, which failed to on a 4-4 vote, included provisions to set the groundwork for how digital sports wagering would be implemented in Nebraska if voters approve the amendment. This decision means that any public vote on the matter will not occur until at least 2026 unless an exception is made.

The framework legislation also outlined how the state would allocate revenue generated from sports betting, with a significant portion earmarked for property tax relief—a critical issue in Nebraska, where property taxes are among the highest in the nation.

Senator Eliot Bostar, who originally sponsored LR3CA, had intended to tie the legalization of online sports betting to property tax relief, arguing that the additional revenue could provide much-needed for public education funding. However, some senators, including Senator Rick Holdcroft of Bellevue, expressed reservations about expanding gambling so soon after voters had already approved casino gambling at several locations in the state.

The Future of Nebraska’s Online Sports Betting

As the special session progresses, the future of online sports betting in Nebraska remains uncertain. Speaker of the Legislature John Arch has indicated that there are no immediate plans to bring the bill to the floor during the special session, which has yet to be concluded. He suggested that the focus of the session would likely remain on property tax legislation, with the potential to adjourn before addressing other bills.

If the Legislature adjourns without further action, the proposal would be carried over to the regular session that begins in January. Should LR3CA eventually both legislative chambers and be approved by voters, the constitutional amendment would permit sports wagering to be conducted within a licensed racetrack enclosure and allow individuals to place bets through a mobile or electronic platform while located within Nebraska.

The path forward for online sports betting in Nebraska is a complex and evolving issue, with lawmakers and stakeholders weighing the potential benefits and drawbacks of expanded gambling. As the debate continues, the Legislature’s decision to advance LR3CA without immediate action on the companion bill reflects a cautious approach, ensuring that any changes to the state’s gambling laws are made with careful consideration and public input.

Source:

“Online Sports Betting Authority for Nebraska Legislature Gets Out of Committee.”, nebraskaexaminer.com, August 14, 2024.