Legislative initiatives to broaden legal sports betting online in Nebraska are postponed for at least one more year.
In the November 2020 presidential election, voters in Nebraska approved a statewide constitutional amendment permitting casinos with slot machines, table games, and sports betting at licensed horse racetracks that host live racing. Although the ballot question did not specifically reference sports betting, legislators subsequently interpreted the result to encompass sports wagering, but restricted it to the physical location of a regulated casino.
Consequently, sports betting in Nebraska is restricted to physical sportsbooks. Online sportsbooks are still banned, yet numerous Nebraskans are utilizing offshore betting sites to place their bets, which advocates for legal online sportsbooks argue is resulting in the loss of tax revenue for the state.
2026 Referendum Canceled
Nebraska Sen. Eliot Bostar (D-Lincoln) sought to give Nebraskans the opportunity to vote on whether online sports betting should be permitted via another gaming referendum in the 2026 midterms. Legislative Resolution 20 was set to present the issue to voters next fall, but on Wednesday, Bostar withdrew the proposal.
Bostar, one of the youngest lawmakers in the Nebraska Legislature at 37 years old, informed reporters that he lacked the backing to bypass a expected filibuster on LR20.
"The votes changed back and forth throughout this entire process. It’s a very dynamic and fluid situation. I think it’s responsible to move on to other things,” Bostar said.
Sen. Brad von Gillern (R-Elkhorn) stated that the state's 2020 gaming approval aimed to rejuvenate horse racing and lower property taxes — not to transform into the Midwest's Las Vegas. Von Gillern stated that permitting online sports betting would result in gambling issues and addiction, particularly affecting young men.
"I can attest that many men in their 20s do not have the wisdom to abstain from things that are harmful to themselves,” von Gillern said.
Legislative Bill 421, put forward in January by Sen. Stanley Clouse (R-Buffalo), aims to circumvent the referendum by recognizing online sports betting as an allowable gambling type, as approved by voters in 2020, and faced a fate akin to LR20. Clouse contended that the 2020 referendum permitted online sports betting, provided that an online sportsbook’s IT infrastructure is situated within the premises of a racetrack casino.
Together with critics of expanding gambling access, including von Gillern, Clouse's legislation encountered legal issues regarding whether the 2020 referendum allowed online sportsbooks regardless of the location of the betting operations within a licensed casino. LB421 was discussed in the General Affairs Committee last month but was subsequently put on hold.
Sports Wagering Idles
As numerous state legislatures approach the conclusion of their sessions, the likelihood at this point of a state joining the 39 plus Washington, DC, that have enacted laws permitting sports betting appears slim. In 2024, Missouri was the lone state to permit sports betting.
Hawaii, a state lacking legal gambling, stands as the most promising candidate in 2025 for entering the sports betting market. A unique conference committee is working to reach an agreement between the two sports wagering bills approved by the Hawaii House of Representatives and Senate.
This year, lawmakers in Mississippi, similar to those in Nebraska, decided against progressing with an online sports betting bill.