A Nebraska lawmaker is making an effort to bring online sports betting to the state amid the start of a new legislative session.
Sen. Stanley Clouse has introduced Legislative Bill 421 as a measure that proposes an amendment to the Revised Statutes of Nebraska to authorize online sports betting. LB 421 proposes wagering to be conducted under the Nebraska Racetrack Gaming Act with regulation by the State Racing and Gaming Commission. The bill also makes changes to how tax revenue from sports wagering is distributed and declares an emergency.
Clouse has introduced LB 421 with Nebraska only offering retail wagering to residents and visitors. In 2023, the Cornhusker State authorized retail betting only at licensed casinos.
Framework of online sports betting
LB 421 calls for online sports betting to be tied to the state’s licensed racetracks, which are required to partner with licensed sportsbooks. Each of the state’s licensed racetracks can only partner with one sports betting operator. Nebraska is home to six racetracks.
Under the bill, authorized operators are required to pay a one-time $5 million licensing fee, which can be paid for over a period of five years with $1 million due at the date of issue.
LB 421 proposes that 3% of tax revenue from sports wagering be allocated toward the Compulsive Gamblers Assistance Fund. The state’s Gaming Commission Fund is set to receive 3.5% while another 3.5% will go to the commission’s Cash Fund. The Property Tax Credit Cash Fund would receive 90% of the tax revenue from sports wagering.
LB 421 also changes Nebraska gaming law to allow wagering on in-state colleges. The bill includes an emergency allowing it to take effect when passed and approved and calls for a survey of rules from other online markets to further develop a regulatory framework.
Previous failed effort to authorize online wagering
Last year, Nebraska lawmakers attempted to authorize online sports betting during a special legislative session that lasted 17 days. During the special session, Sen. Elliot Bostar introduced LR3CA, which proposed online sports betting through licensed casinos.
LR3CA failed to be discussed on the Senate floor during the special session ultimately leading to its demise. In a new legislative session, Clouse is making his own attempt.
New legislative session in Nebraska
Clouse has introduced his bill as Sen. Tom Brandt aims to allow in-state college betting.
On Monday, Brandt introduced Legislative Bill 63, which proposes amendments to the state’s Gaming Act to allow pre-match and live betting on in-state college sporting events.
Nebraska is home to marquee events and historic teams at the University of Nebraska and Creighton University. It is also home to the University of Nebraska-Omaha.
