January 21, 2025 3 min read

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Online Sports Betting Bill Introduced in Nebraska by Senator Clouse

Legislative Bill 421, introduced just after the start of the new legislative session, proposes the authorization of online sports wagering

Lawmakers in Nebraska are making another push to legalize online sports gambling after a proposal failed to pick up traction in the Senate last year. Now, with the recent start of the new legislative session, a separate bill proposes the authorization of online wagering on sports.

Mobile Betting Proposal Seeks to Expand the Gambling Options in Nebraska

The aforementioned proposal, Legislative Bill 421 (LB 421), was introduced by Sen. Stan Clouse, who is the bill’s primary sponsor, on Friday, January 17, 2025. The proposal seeks to expand Nebraska’s gambling vertical with the introduction of online sports betting. Per the bill, the activity would be regulated under the Nebraska Racetrack Gaming Act and the State Racing and Gaming Commission will be in charge of overseeing online sports betting.

It was back in 2020 when a referendum greenlighted by Nebraska residents allowed casino gambling at horse racetracks across the state. Subsequently, the next year, sports betting was legalized and launched in 2023. However, wagering on sports remains limited to the retail vertical and as noted, LB 421 seeks to change that.

According to Clouse’s proposal, another referendum won’t be required in order for mobile betting to be permitted. This would be accomplished via changes to the existing regulations under the Nebraska Racetrack Gaming Act.

The bill doesn’t come as a surprise considering the proposal that failed to pick up speed last year and the popularity of mobile wagering as a whole. In fact, states that offer both retail and mobile sports betting usually record a significant share of the wagers going online rather than via retail outlets. Generally speaking, the online betting sector is usually responsible for more than 90% of the wagers, if not more.

The Bill Proposes 20% Tax on Online Betting, 5-Year Licenses

While LB 421 seeks to expand the gambling sector in Nebraska, this expansion would follow strict guidelines. For example, commercial casinos and racetracks would be permitted to join forces with an online sports betting operator. This can pave the way for the expansion of leaders FanDuel and DraftKings, but also help other brands like Caesars, BetMGM and others reach new audiences.

Licenses for mobile betting would be subject to a $5 million fee and will be awarded for a period of five years. Unlike other states where the license fee would be payable in full upon receiving the license, online betting companies licensed in Nebraska will only have to pay $1 million initially.

Similarly to the retail betting sector, mobile wagering would be subject to a 20% tax on sports betting revenue. Under the new proposal, the Property Tax Credit Cash Fund would benefit from 90% of the tax revenue generated from mobile betting, while the Compulsive Gamblers Assistance Fund will benefit from 3% of the taxes. On the other hand, the Nebraska Gaming Commission Fund will receive 3.5% of the taxes on online betting, while the remaining 3.5% will contribute to its Cash Fund.

Sen. Clouse’s bill proposes legal online wagering to be introduced starting from September 1, 2025. Still, the launch of online betting is contingent on a green light from the state’s lawmakers. Considering that the proposal was introduced for the new legislative session, it will have plenty of time to pick up speed.

Journalist

Jerome brings a wealth of journalistic experience within the iGaming sector. His interest in the industry began after graduating from college, where he regularly participated in local poker tournaments. This exposure led him to the growing popularity of online poker and casino rooms. Jerome now channels all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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