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Nebraska Legislature Poised to Debate Mobile Sports Betting Legalization

NE Cornhusker mascot clapping

The Nebraska Legislature is gearing up for a potential debate on the legalization of mobile sports betting in the state, following the advancement of a legislative proposal through a committee. Legislative Resolution 20CA, introduced by State Sen. Eliot Bostar of Lincoln, aims to allow licensed racetracks in Nebraska to offer online sports betting through authorized gaming operators.

Revenue generated from mobile sports betting would be directed toward property tax relief, with Bostar estimating that the state could see up to $32 million in annual tax revenue.

The proposal gained traction when the General Affairs Committee voted 6-2 to advance the resolution. Many committee members, such as State Sen. Stan Clouse of Kearney, supported the move, emphasizing the importance of being proactive in establishing regulations for this emerging industry.

Opponents of the bill, including Pat Loontjer, executive director of Gambling with the Good Life, expressed concerns about the influence of gambling lobbyists and the potential negative impact on NE-based families. Loontjer, a long-time opponent of expanded gambling, criticized the argument that mobile sports betting would lead to property tax relief, calling it misleading.

“It’s been five years, and no one I know has seen their property taxes reduced,” Loontjer said, referring to the failed promises of tax relief following previous gambling expansions in the state.

Despite opposition, Bostar remains optimistic about the proposal’s chances, highlighting that many Nebraskans are already participating in mobile sports betting, often by traveling to neighboring states like Iowa to place bets.

“If Nebraskans weren’t already participating, I wouldn’t have brought this proposal forward,” Bostar explained. He pointed to examples such as Omaha residents crossing the border to Iowa to place bets, particularly during major events like the College World Series.

While not a supporter of gambling, State Sen. Barry DeKay of Niobrara agreed that the Legislature should regulate mobile sports betting rather than leave it to a potential ballot initiative, which could introduce broader and less controlled measures. “If we don’t do something now, the people will make their voices heard,” DeKay remarked.

Opponents of the resolution argue that voters, not lawmakers, should decide on the issue. State Sen. Rick Holdcroft of Bellevue, who voted against the bill, expressed concerns about the social impact of expanded gambling and the state’s ability to assess its effects fully.

“We’ve only had two years of revenue from expanded gambling, and we’re already seeing an increase in calls for gambling addiction help,” Holdcroft noted. He believes the state should observe the long-term impacts before making further decisions.

Holdcroft’s view was echoed by State Sen. Jared Storm of David City, who argued that supporters of mobile sports betting should gather signatures for a ballot initiative instead of relying on the Legislature to place the decision on the ballot.

State Sen. John Cavanaugh of Omaha also expressed concerns about expanding gambling too quickly and suggested that the Legislature should consider adopting online sports betting only if lawmakers have a clear consensus.

The debate has revealed a rift within Nebraska’s political leadership. Gov. Jim Pillen, a former Cornhusker football player, had previously indicated that he would support legislation to legalize mobile sports betting but did not introduce any related bills in this session. In contrast, former Nebraska football coach Tom Osborne, who has publicly opposed Bostar’s resolution, has taken a more neutral stance, stating that he would not block the proposal if it advances.

Freshman State Sen. Jason Prokop of Lincoln has prioritized Bostar’s resolution as his bill for 2025, increasing its chances of being scheduled for debate. Prokop, who believes that the issue has significant public support, expressed his desire to let voters have a say. “My position is: Let the voters decide what they want to do,” Prokop said.

With Prokop’s support, the resolution is likely to be debated in the coming legislative session. However, Holdcroft predicts that the issue will face significant opposition, and passage is far from guaranteed. Under the Nebraska Constitution, at least 30 votes would be required for the resolution to advance, making it clear that the debate over mobile sports betting in Nebraska is far from settled.

As lawmakers prepare for this contentious debate, it remains to be seen whether the Legislature will take action or leave the decision to the voters, who may ultimately decide the fate of mobile sports betting in Nebraska.

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