Nebraska lawmakers introduce bill to legalize online sports betting

Nebraska lawmakers have introduced legislation seeking to legalize sports betting in the state. Filed on Thursday, Sen. Eliot Bostar’s Legislative Bill 13 would amend the state constitution to allow racetrack operators to operate an online sports betting platform under the Nebraska Racetrack Gaming Act.

Besides legalizing online wagering, the legislation would also repeal an existing ban on in-state college sports teams betting. However, player prop bets on Nebraska college athletes would remain prohibited, as would placing in-game bets on Nebraska college teams or betting on the performance of any athlete anywhere under the age of 18.

The move is backed by Gov. Jim Pillen, who voiced his support for the plan at a press conference last week. “Online sports betting is real, and it’s happening in the state,” he said. “Whoever wants to do it is doing it, and we’re giving all the revenue to our neighbors.”

The legislation, part of more than a dozen projects introduced on Thursday as part of a special session, seeks to help raise money for property tax relief. The bill calls for 90% of tax revenue to be allocated specifically to property tax relief via the Property Tax Credit Cash Fund.

Thursday also saw a separate bill to legalize fantasy sports being filed. Sen. Carol Blood's LB6 proposes the introduction of the Fantasy Contests Act, allowing paid-entry fantasy contests throughout Nebraska, including both peer-to-peer and against-the-house contests.

Under the bill, after paying an initial registration fee of $10,000 to the Department of Revenue, operators would pay an annual renewal fee equating to 6% of their gross gaming revenue over the previous 12 months. There would be no additional taxes beyond that fee.

If passed, the act would make Nebraska the first state to base its licensing fee structure on operators’ revenue, marking a deviation from the common approach of charging a license fee plus a percentage of revenue as tax.

Nebraska currently offers retail sports betting, following its legalization in 2021. However, online typically attracts a larger audience, as shown by a GeoComply report that states that 2 million illegal online sports bets were placed in Nebraska between January and June of this year.