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The state of Nebraska had long eschewed any form of legal betting. That is, until 2020, when a series of ballot measures were passed that brought gaming to Nebraska.
There were physical casinos, four of them to be exact. There was also sports betting, with restrictions, though. Sports wagers could only be had at the casinos — not online via sports betting apps. That could be changing, however.
There’s serious momentum toward opening up online sports betting inside the Cornhusker state. The rise of prediction markets — and how they’re currently side-stepping Nebraska laws — is one of the causes of that newfound momentum, too. Keep on reading and we’ll bring you up to speed with Nebraska sports betting movements.
Voters Could Decide Betting Fate
Typically, we see in-state lawmakers lead the charge on updating laws, sports betting or not. But in Nebraska, it might go straight to voters. With a little help form the local casinos.
WarHorse Casino is one of Nebraska’s four casinos, arguably its biggest. WarHorse is leading a ballot petition to expand sports betting in the state to online. That’s not to say commercial apps like DraftKings and FanDuel would be coming to the state. No, it would tie sports betting to the state’s casinos and allow them to offer two “skins” for taking wagering.
This move comes after lawmakers stalled on the issue yet again. There’s a political gridlock in the state, which has made passing legislation impossible for most issues, not just betting. Casinos are behind two petitions — one to amend the state constitution’s gambling language, and another to update the state’s regulations. Taken together, it would pave a pass for online sports betting.
If it passes, the Nebraska Racing and Gaming Commission would then be responsible for updating the rules. They’d have until June 1, 2027 to get everything in place and operational. So even in a best-case scenario, online betting in Nebraska is still a ways away. Voters would decide in November, and even if passed, the commission could take many more months to implement.
But… let’s also not get ahead of ourselves because there’s no guarantee betting even gets on the ballot to begin with. A constitutional amendment requires signatures from 10 percent of registered voters — roughly 125,000 people — plus geographic distribution across at least 38 of Nebraska’s 93 counties. The regulatory portion has a slightly lower threshold at 7 percent.
WarHorse CEO Lance Morgan said the goal is to get closer to 300,000 signatures to be safe. The deadline to turn them in is July 3 so there’s plenty of time still. If they hit that number, this won’t just be talk anymore — it’ll be up to Nebraska voters.
The State Has A History Of Failed Momentum
Normally when a state governor has interest in an issue, that thing gets passed. That’s why it’s surprising Nebraska doesn’t already have legal sports betting. In 2024, it’s sitting Governor Jim Pilen openly endorsed online betting. Not out of his good heart, but as a creative way to ease the state’s property tax burden. Genius idea, ain’t it?
But governor’s support didn’t translate into action. Lawmakers had a chance to tackle the issue during a special session that year and… nothing happened. No movement. No vote. Sen. Eliot Bostar, who was carrying the bill, eventually pulled it altogether once it became obvious there weren’t enough votes to break a filibuster.
That stalemate is what led to where things are now. Some lawmakers warned this exact scenario would play out — that if the legislature didn’t act, the casinos would take it straight to voters. Sen. John Cavanaugh put it bluntly at the time, saying he had “a lot of heartburn” over mobile betting.
But most importantly, dragging their feet on the issue has led to money going elsewhere. Bostar estimates that Nebraska is missing out on about $32 million a year in tax revenue without online sports betting. That number might honestly be understated. Across the country, in states that offer both retail and mobile betting, we see the latter take up 95 percent of betting action.
Bettors everywhere, not just in Nebraska, want frictionless betting on their phone — not long drives to the casino, made worse right now with skyrocketing gas prices. And it’s no wonder that prediction markets have caught on in the state, as we explain in the next section.
Prediction Markets Have Thrived In Nebraska
There’s evidence to believe Nebraska bettors are using prediction markets in droves. This past basketball season alone, more than $97 million was wagered on Cornhuskers games across platforms like Kalshi and Polymarket. That’s not to say all the “trading volume” came from wide the state — they are national numbers — but c’mon, you have to believe it’s a good chunk of it.
If bettors are using prediction markets, that means they’re not using Nebraska’s physical sportsbooks. That also means less tax revenue for the state.
Ultimately, this is one of the big drivers of this ballot initiative. If locals are doing it anyway, why not legalize it and reap the tax benefits? As is, these prediction markets are circumventing Nebraska laws (along with dozens of other states that restrict online betting).
“It looks like a sports bet. It quacks like a sports bet. It’s a sports bet,” Morgan said. “How is betting on the Huskers the same as trading on the price of soybeans?”
Quack, quack, quack.
Online betting sites 