Posted on: August 21, 2024, 02:46 am.
Last updated on: August 21, 2024, 02:46.
The first legal online sports betting will not be possible in Nebraska until 2027 at the earliest. The reason for this is that the Nebraska State Legislature decided not to take any action to allow online sports betting operators during its special session on property tax relief, which ended on Tuesday.
Nebraska Republican Gov. Jim Pillen signed legislation Tuesday that provides $185 million in tax relief to property owners. It’s a pared-down compromise to Pillen’s demands, as the $185 million relief represents just 3.5 percent of the $5.3 billion in local property taxes collected last year.
This is a first step forward,” said Pillen. “More needs to be done. Together we can do it and together we will do it.”
Under the new law, municipalities and counties will only be allowed to raise property taxes by the rate of inflation or 0%, whichever is greater. Lawmakers have agreed to fund the relief through $117 million in budget cuts, $46 million from state cash reserves and $22 million from higher fees for state programs and services.
Online sports betting excluded
Pillen called the state legislature into special session to look for ways to offset skyrocketing property taxes for homeowners. The legislative body in Lincoln considered expanding sports betting to the Internet, which is currently limited to in-person wagering at the state’s racetrack casinos.
The online sports betting initiative was led by Senator Eliot Bostar (D-Lincoln). His LR3CA was a proposed referendum that would ask Nebraskans in the Nov. 5 election whether they supported Internet sports betting, as long as the associated tax benefit was used for property tax relief.
LR3CA passed the unicameral General Affairs Committee on August 12 by a vote of 5 to 2. The plenary decided not to take up the matter during the special session.
Bostar said allowing online sports betting at casinos would have brought the state more than $30 million in additional tax revenue per year. He suggested the tax benefit for online sports betting should go into the state’s Property Tax Credit Cash Fund.
The numerous opponents of online sports gambling said the state should not rush to further expand gambling because Nebraskans had just passed three constitutional amendments in November 2020 that allowed licensed horse racing tracks to convert into commercial casinos with slot machines, table games and sports betting shops.
2026 Next opportunity
Nebraska’s constitution limits statewide referendums to even-numbered elections, meaning online sports betting will remain offline until at least November 2026.
If Nebraska residents ratify a referendum on online sports betting in November 2026, the Nebraska Racing and Gaming Commission would have to formulate regulatory conditions for online sports betting, complete applications, conduct eligibility reviews and conduct pre-launch operational tests.
Such tasks typically take six months or more, meaning Nebraska residents are unlikely to be able to legally place sports bets in their state until mid-2027 at the earliest.
