Nebraska committee advances online sports betting authority bill, but public vote delayed

Nebraska's Legislature took a cautious step forward in the debate over online sports betting on Monday, as the General Affairs Committee advanced an amended version of Legislative Resolution 3CA. The resolution, which passed 5-3, would allow residents to vote on whether the Legislature should be granted the constitutional authority to decide the issue. However, the decision to delay a companion bill means any public vote on the issue is unlikely before 2025.

State Sen. John Cavanaugh of Omaha, a Democrat, who introduced the amendment, received bipartisan support, including from Republican State Sen. Tom Brewer of north-central Nebraska. Cavanaugh's amendment stops short of a direct vote on online sports betting, instead proposing that the public grant the Legislature the power to make future decisions on the matter, reports the Nebraska Examiner.

This middle step gives the Legislature a better chance to set the rules for online sports betting rather than leaving it to a petition initiative driven by special interests, Cavanaugh said during an executive session on Monday.

Supporters of the amendment, including State Sen. Jana Hughes of Seward, expressed concern over potential influence from well-funded casino interests if the issue were left to a direct ballot initiative. They emphasized the importance of a thorough legislative debate on whether online sports betting should be allowed in Nebraska and, if so, how it should be regulated.

State Sen. Jane Raybould echoed this sentiment, warning that special interests might rush voters into a decision before they fully understand the implications of online sports gambling. "Letting the voters decide whether they want lawmakers to have the authority to legalize online sports betting is a good way to share the process with the people they represent," Raybould said.

However, the committee's failure to advance a companion bill that would have placed constitutional amendments on the November ballot, due to a 4-4 deadlock, means that any public vote on the issue will likely be postponed until at least 2025.

Opponents of expanded gambling, such as State Sen. John Lowe of Kearney, argued against advancing the measure during the special session, contending that it falls outside the scope of Governor Jim Pillen’s call for property tax relief. Lowe and others raised concerns about the negative impact of expanded gambling on those already in financial distress.

The fate of the resolution may be uncertain, as Speaker John Arch indicated on Tuesday that he has no plans to schedule the bill during the special session. Arch suggested that the Legislature is likely to focus on property tax bills and adjourn afterward, pushing any further debate on online sports betting to the regular session in January.