The Cornhusker State will be authorizing legal sports betting after a lengthy wait.
Nebraska will go live with retail sports wagering on Thursday at WarHorse Casino Lincoln. The casino is set to debut its sportsbook, which will allow customers to place bets at either the facility’s betting window or its 10 kiosks. WarHorse has partnered with Kambi Group to offer odds at the sportsbook, which will be managed by a former BetMGM sports betting manager.
“Nebraskans have been asking for the opportunity to wager on sports since the ballot initiatives were passed in 2020,” Ho-Chunk Inc., parent company of WarHorse Gaming, CEO Lance Morgan told The Lincoln Star. “We’re thrilled to be the first casino in the state to offer sports betting.”
The two-year journey to authorize wagering in Nebraska was sparked by residents in the Cornhusker State who voted to approve sports betting and casino gaming at horse racing tracks. Despite the opportunity to wager, Nebraska will not offer online betting sites to residents.
Nebraska is an outlier compared to neighboring states like Colorado, Iowa, and Kansas.
What business could look like
Casinos that operate sportsbooks in Nebraska will be required to pay a 20% tax from gross gaming revenue. The revenue is then allocated toward the state’s Property Tax Credit Fund.
WarHorse’s new sportsbook will help improve the casino’s returns. In May, WarHorse Lincoln and the Grand Island Casino Resort generated $1.3 million in taxes for Nebraska — the lowest mark since January, according to the state’s Racing and Gaming Commission. The Grand Island has no immediate plans to add sports betting but is expected to explore the market.
However, Nebraska will be missing out on a substantial amount of potential tax revenue with no online operators in the state. Major sportsbooks, including FanDuel and DraftKings, are unable to gain access in Nebraska, which would give residents more opportunities to wager.
The discrepancy between states with retail wagering and those that offer both in-person and online is staggering. Mississippi, which only provides retail wagering, generated $4.3 million in gross revenue from sports betting in April behind a $31.8 million handle.
In comparison, Colorado — which offers both online and retail — reported $35.1 million in gross revenue during the month behind a $417.8 million handle.
