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Nebraska Online Sports Betting on Hold Until 2027, Possibly Later

The initial legal online sports wager in Nebraska will not take place until at least 2027. This is due to the Nebraska Legislature's decision to refrain from approving online sportsbooks during its special session on property tax relief that concluded on Tuesday. 

On Tuesday, Nebraska Gov. Jim Pillen (R) enacted a law that offers $185 million in tax relief for property owners. It was a scaled-back agreement from what Pillen requested, as the $185 million in aid accounts for only 3.5% of the $5.3 billion in local property taxes collected last year.

"This is a first step forward,” Pillen said. “More needs to be done. Together we can, and together we will.”

According to the new legislation, local governments and counties can only raise property taxes in line with the inflation rate or by 0%, whichever is higher. The legislature decided to finance the relief using $117 million from budget reductions, $46 million from state cash reserves, and $22 million obtained by raising fees on state programs and services. 

 

Excluded from Online Sports Betting 

Pillen summoned the state Legislature for a special session to seek solutions for reducing soaring property taxes for homeowners. The Lincoln legislature considered broadening sports betting to online platforms, which is presently restricted to face-to-face bets at the state’s racetrack casinos. 

The initiative for online sports betting was spearheaded by Sen. Eliot Bostar (D-Lincoln). His LR3CA was a suggested legislative referendum aimed at asking Nebraskans in the November 5 election whether they back internet sportsbooks, provided that the related tax revenue would be directed towards property tax relief. 

LR3CA was approved by the Unicameral General Affairs Committee with a 5-2 vote on August 12. The entire chamber decided against addressing the issue in the special session. 

Bostar stated that permitting casinos to operate online sportsbooks might have provided the state with over $30 million annually in additional tax revenue. He proposed that the online sports betting tax revenue be allocated to the state’s Property Tax Credit Cash Fund. 

Numerous opponents of online sports betting argued that the state should not hastily expand gambling, as just in November 2020, Nebraskans endorsed three constitutional amendments permitting licensed horse racetracks to operate as commercial casinos with slot machines, table games, and retail sportsbooks. 

 

2026 is the Upcoming Chance 

The Constitution of Nebraska restricts statewide ballot referendums to elections held in even-numbered years. This indicates that online sports betting will continue to be unavailable until at least November 2026. 

Should Nebraskans approve an online sports betting referendum in November 2026, the Nebraska Racing and Gaming Commission must establish regulatory requirements for online sports betting, process applications, perform suitability assessments, and carry out premarket operational testing. 

These activities usually require six months or more, indicating that Nebraskans will likely be able to legally place a sports bet in their state around mid-2027. 

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