Nebraska to Vote on Constitutional Amendment for Online Sports Betting

Nebraska lawmakers are considering the legalization of online sports betting in the state in order to alleviate the property tax burden. They will hold a special legislative session on July 25 to decide whether to put a constitutional amendment on the ballot that would allow mobile sports wagering, which could generate $30 million a year in state revenue for property tax relief.

Ho-Chunk Inc. Leads Charge for Legalized Online Sports Betting in Nebraska

Ho-Chunk Inc., which operates WarHorse Casinos in Lincoln, Omaha and South Sioux City, is leading the effort. CEO Lance Morgan said this revenue source is additive — as opposed to being a tax shift, reported KETV. He said their polling shows strong public support with 65% of Nebraskans in favor of allowing online sports betting.

State Sen. Terrell McKinney said people from Nebraska are already going to Iowa to legally bet on sports, and he said the fact that they are leaving the state for that underscores why the legalization is necessary. McKinney criticized what he sees as an overly protective stance by the state toward gambling, saying it is costing Nebraska “significant” dollars.

Gov. Jim Pillen commented that while he does not personally like online gambling, he knows there are financial benefits associated with it. He has previously stressed that he wants to cut property taxes in half, which would take roughly $1.8 billion. Pillen has mentioned sin tax increases and spending cuts as possible strategies but says expanding gaming is more of a “palatable” solution.

WarHorse Casinos Push for Constitutional Amendment to Legalize Online Sports Betting

Lynne McNally, director of government relations at WarHorse Casinos, expressed optimism that lawmakers will see this as a viable and innovative way to raise money for priority sectors such as education without raising taxes directly or imposing mandates or fees.

If 60% of the Legislature votes yes on this proposal during the special session later this month then voters would decide whether to add a constitutional amendment allowing sports betting in the state constitution in November.

This proposal comes about a year after retail sports betting was allowed for the first time in Nebraska, with WarHorse taking the state’s first legal wagers. Since then Nebraskans have had to go to physical locations within the borders of licensed casinos to place their bets, an arrangement that supporters say drives traffic and spending at those sites but which industry watchers argue is cumbersome and pushes people offshore.

Additionally, in February, Nebraska lawmakers advanced a bill introduced by state Sen. John Lowe, to regulate skill gaming machines by imposing a 5% tax on net profits and a fee per machine, aiming to address their proliferation and societal impact while funding property tax relief and enforcement measures.