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Legalization of online sports betting makes progress in Nebraska

Four years after the state’s voters approved retail and in-person sports betting, Nebraska appears to be making progress with the legalization of online sports betting.

However, there may still be a long way to go before our best sports betting sites can operate in the Cornhusker State.

The unicameral General Affairs Committee approved LR3CA this week by a vote of 5-2, a victory for our best sports betting apps and advocates of legalized mobile sports betting that would allow for an expansion of Nebraska’s current retail-only sports betting scene.

One problem with the plan came with another bill, LB 13, which failed to make it through committee and could make the debate over legalization an election issue in 2026.

Senator Eliot Bostar estimates that legalizing online sports betting and imposing a 20 percent tax on gross sales from sports betting could generate $30 million in annual revenue for the state.

Nebraska currently allows on-site commercial gambling at horse racing tracks and has enacted regulations for on-site slot machines, table games and sports betting.

Good and bad news

The good news from this week’s developments is that voters will finally have their say in expanding their program.

The bad news is that it may not appear on the November 2024 ballot.

LR3CA specifies that the question will be put to voters in an upcoming election. It does not set November 5 as a date. LB 13, which had set November 5 as a target date, did not advance, meaning the 2026 election is a distinct possibility.

Another amendment would return voter approval in November to the legislature, which would then have the final say. The legislature would be “authorized to offer sports betting by law,” rather than “authorizing an authorized gaming operator,” as originally planned.

There is undoubtedly some motivation for Nebraska lawmakers to take action.

According to Senator Eliot Bostar, the demand is there and the revenue from legal online sports betting is earmarked for property tax relief.

There is still time to sort things out, but the launch date for online sports betting in Nebraska is still not set for the foreseeable future.

By Bronte

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