Nebraska sports betting enthusiasts could benefit from expanded gambling offerings following a special legislative session scheduled for the end of July. Called by Governor Jim Pillen, the session will explore various solutions to decrease state property taxes for Nebraska homeowners. One such solution includes a discussion of several proposals for the legalization of online sports betting and daily fantasy sports.
In November 2020, Nebraska voters endorsed casino gaming at authorized racetracks and casinos. However, due to a lack of clarity, sports betting’s legal status had not been specifically determined. Later, in October 2022, in-person sports betting regulations were approved, with the first bets in the state being officially placed in June 2023.
On July 25, the first day of the special legislative session, Senator Eliot Bostar introduced Legislative Bill 13 (LB13). It was referred to the General Affairs Committee and is scheduled for hearing today.
If approved, the proposed legislation would allow a legal gaming operator to offer sports wagering services via an online platform, modify the distribution of collected taxes, and lift a betting ban on state college games played in-state. College player prop bets and live bets on college games would be prohibited though.
According to the bill, Nebraska ranks among the top 10 US states with the highest property taxes, with the revenue being directed to education: “The Legislature finds that Nebraska relies more heavily on local property taxes to support public education compared to other states and consistently ranks in the top ten among all states in terms of per capita property tax burden on its citizens.”
In addition to LB13, Senator Bostar also filed Legislative Resolution 3CA (LR3CA) that would offer a constitutional amendment to voters in November to legalize sports wagering apps. To come into effect, the measure would need the approval of three-fifths of the legislature plus the majority of voters.
The bills would require online sports betting platforms to be associated with a physical casino or racetrack within Nebraska.
The Bill Changes the Distribution of Taxes Collected from Sports Betting
The expansion of sports betting in Nebraska through the authorization of online platforms can effectively help in providing property tax relief. Currently, sports betting in Nebraska is taxed at 20%, with 70% of the revenue directed to the Property Tax Credit Cash Fund. Under the provisions of LB13, that percentage could be increased from 70% to 90%.
Furthermore, the remaining 10% would be distributed between the Compulsive Gamblers Assistance Fund (3%), the Racing and Gaming Commission’s Racetrack Gaming Fund (3.5%), and the Racing and Gaming Commission’s Racing Cash Fund (3.5%).
If passed into law, the proposed expansion of sports betting in Nebraska will come into force no sooner than the middle of December.
