National gambling lobbyists asked Nebraska lawmakers Monday to expand gambling in the state, including allowing voters to decide on a constitutional amendment legalizing online sports betting.
Nebraskans can legally place sports wagers in person at casinos with sportsbooks. However, Sen. Eliot Bostar of Lincoln is trying to change that with Legislative Resolution 20CA, a constitutional amendment legalizing online sports betting.
Supporters of the bill said Nebraska is missing out on a potential $1.6 billion state online gambling industry that would bring $32 million in annual tax revenues, money Bostar believes is flowing into neighboring states like Colorado, Iowa and Kansas.
Bostar said he doesn’t gamble nor blames those opposing gambling or expanding it in Nebraska.
“It can come with real harms," Bostar said. "The question we have to ask ourselves is, do we want that potential revenue to go elsewhere, or do we want it to go here?"
Tax revenue from online sports betting would go to the Property Tax Credit Fund, which Les Bernal, national director of Stop Predatory Gambling, said is “a system of taxation by exploitation.”
Bernal said LR20CA is essentially “legalizing gambling fentanyl” and would worsen what some believe to be a public health crisis of gambling addiction.
“It's opening up essentially a Las Vegas-style casino in every dorm room, every home, every office… every smartphone,” he said.
LR20CA needs the support of at least 30 of 49 Nebraska senators to pass and put the question on the ballot for voters in 2026. If voters approve, the proposal would allow licensed casino operators, like WarHorse in Lincoln and Omaha, to partner with national sportsbooks such as FanDuel or DraftKings to offer mobile betting statewide.
The General Affairs Committee heard testimony from lobbyists for FanDuel, DraftKings, BetMGM and Caesars, some of the nation's largest sportsbooks. They pointed to public polling that showed a majority of Nebraskans support online sports betting.
Sean Ostrow, a lobbyist for the Sports Betting Alliance, which includes FanDuel, DraftKings BetMGM and Fanatics, said 59% of Nebraskans supported legalized online sporting betting, according to polling, which grows to 65% when tax revenue collected from sports betting is used to reduce property taxes.
Supporters of the bill argue that many Nebraskans are already placing bets online by driving across state lines or accessing illegal, unregulated sportsbooks.
Lindsay Slader, senior vice president of compliance of GeoComply, testified neutrally at the hearing and said the geo-location verification software company tracked 42,000 border crossings from Nebraska into neighboring states where online sports gambling is legal throughout the latest NFL season. Over 90% of those crossings were into Iowa.
Last year, Nebraskans bet more than $12.6 million on the NFL, $10.4 million on college football, $8.9 million on college basketball and $8.2 million on Major League Baseball at one of the four casinos in Columbus, Grand Island, Lincoln and Omaha, according to the Nebraska Racing & Gaming Commission 2024 Annual Report.
Opponents of the bills told reporters before the hearing that expanding gambling access would hurt Nebraskans.
Nate Grasz, executive director of Nebraska Family Alliance, called online sports gambling a “direct threat” to families.
Grasz replied to proponents of the bill who say Nebraska is only losing out on potential tax revenue without online sports betting.
“That's not the only thing that we're doing. We are actively withholding a wave of familial and financial devastation for the people of Nebraska,” he said. “We all know that the house always wins, right? And so for the house to win, it's the people of Nebraska and our own children who have to lose.”
The committee heard testimony on five different bills related to sports gambling, including proposals to legalize betting on in-state college sports when they play in Nebraska and legalizing betting on fantasy sports.
The General Affairs Committee took no immediate action on the gambling proposals.