Nebraska Could Introduce Mobile Sports Betting Soon

Nebraska sports betting effectively had a giant lid on it. Sure, things are legal, but not legal enough to really open up the betting market.

There’s no mobile sports betting in the state. Nothing. To get action in Nebraska, bettors have to drive to licensed racetrack casinos and put money on the spot. That might work if you live in bigger areas like Omaha, Lincoln, Grand Island, Columbus, or Ogallala. But if you’re somewhere more rural (that’s most of the state)? You’re out of luck unless you use a popular offshore sportsbook or prediction market.

But… that could be changing soon. No, there’s not a new bill that would legalize sports betting on mobile. Instead, there’s a ballot initiative being drummed up by casinos, sports betting apps, and everyday residents. If this initiative is successful, then voters will be able to decide for themselves whether to legalize or not. We break it all down in this article so stick with us.

Ballot Initiative is Picking Up Steam

Tax Relief Nebraska is collecting signatures for two ballot measures. One would amend the state constitution to allow online sports betting. The other would create the state law needed to regulate it.

The campaign has until July 3 to submit signatures. The constitutional amendment needs valid signatures from about 10 percent of registered voters. Based on Nebraska’s population and voter class, that’s roughly 125,000 people. The statutory measure needs 7 percent, or around 88,000. Both also have to hit geographic requirements across at least 38 of Nebraska’s 93 counties.

That’s not a layup, but the campaign says they’re on track with about two months still left. They’re certainly not lacking money, that’s for sure. Get this, FanDuel and DraftKings — who both stand to gain if this ballot wins out — each donated $1.5 million in April alone. That’s on top of more than $1.1 million each had already given.

Others have donated too, albeit at smaller amounts. BetMGM, Fanatics, and WarHorse Casinos are also on the donor list. In total, Tax Relief Nebraska has raised more than $5.6 million this year — a good chunk of change for an initiative in the state.

But let’s get this out of the way: the initiative wouldn’t automatically allow full access to betting for commercial operators. Instead, online sportsbooks would have to partner with an existing racetrack casino to get access in Nebraska. Starting up a sportsbook takes money and time, something many racinos might not have, making these partnerships very likely to happen. That’s good news for the betting app donors behind this.

Why Nebraska Wants Go Expand Sports Betting Anyway

So what’s the sales pitch behind this thing? Is it as simple as, “hey, we want more gambling and more money in our own pockets”? No, not exactly. It’s something much more marketable than that: property tax relief.

All across the country, this is the bane of existence for many homeowners. Some have fully paid off houses, yet still have to pay state governments a tax on it. It’s no different in Nebraska, with many residents wanting the tax lessened or gone altogether.

Enter this sports betting expansion. A new study from Eilers & Krejcik Gaming — commissioned by Tax Relief Nebraska — found that online sports betting could generate just under $87 million in new state tax revenue over five years.

If Nebraska handles that money like casino gaming revenue currently is, 70 percent would go toward property tax credits. That would mean roughly $61 million in extra property tax relief for Nebraska homeowners. That’s not a silver bullet, but it’s still a welcome tax relief.

And it’s not like people aren’t wagering online in the state already. We said it earlier, but we’ll say it again: offshore betting and prediction markets are popular in Nebraska. But none of that activity is taxed in Nebraska. So opening up access would at least keep money in-state, at least that’s what the initiative’s proponents argue.

Critics Aren’t Buying It

Reducing the burden of property taxes is a good sales pitch, but not everyone’s convinced. State Sen. Brad von Gillern — a longtime critic of legal sports betting — says the “relief” would be a nothingburger. Per his projections, it would equal roughly 1 percent of Nebraska’s current property tax credit program.

Critics also argue the social costs of the expansion are being downplayed. Online betting makes everything frictionless — and that’s the issue. Being able to bet anytime and anywhere could lead to addiction for residents who are on the more impulsive side. So critics say, yes, state revenues go up, but at the cost of its own citizens losing their hard-earned money.

That’s the tradeoff voters will have to weigh if this thing makes it to the ballot come midterms this November. On one side, Nebraska is already leaving money on the table while residents find other ways to wager online. On the other, mobile betting would put a sportsbook in everyone’s pocket with ease, which will undoubtedly ruin some lives. Both things can be true at once — it’s not one or the other thing.

Still, the momentum is clearly picking up in Nebraska. It feels inevitable that Tax Relief Nebraska gets the signatures needed by July 3. If it happens or doesn’t, we’ll be the first to let you know so be sure to check back for updates.