Nebraska is moving one step closer to legalizing online sports betting.
On March 17, a legislative committee referred a proposed constitutional amendment to the Senate for consideration. This action puts Nebraska in a position as one of the strongest states in the nation to legalize online sports betting this year.
To advance further, the bill, LR 20CA, will need to be approved with a two-thirds majority vote on three separate Senate floor votes. Unlike most other bicameral state legislatures, Nebraska's unicameral legislature simplifies the legislative process.
Still, garnering sufficient support is the greatest challenge. If passed, the amendment would find its way on the 2026 general election ballot. If voted into place by the citizens, online sports betting would remain a non-enacted law until 2027 at the earliest.
The bill's advancement follows a contentious March 10 public hearing, during which the opposition was intense. Despite the pushback, legislators advanced the measure in an effort to preempt a potential industry-backed ballot initiative.
Some lawmakers argue that authorizing the legislature to regulate online gambling is preferable to a more sweeping endeavor by the gambling industry that could lead to fewer restrictions on wagering.
Nebraska has lagged behind its neighbors in making online sports betting legal, but there has been growing pressure as more and more people go to other states to place bets. Iowa online sports betting is already legal, and the Hawkeye State has been one of Nebraskan bettors' favorite destinations.
Supporters of the sports betting legislation argue that legalizing online betting would capture this lost revenue and redirect it into the Nebraska economy. The legislation so far allows a maximum of six online sportsbooks, all of which would be affiliated with licensed racetrack enclosures that already have retail sportsbooks.
College betting provisions remain uncertain
One of the most controversial provisions in the proposal is whether to authorize betting on state college teams if they are home. Currently, Nebraska law does not allow one to bet on in-state collegiate teams when playing within the state, but bets can be made on them while they play beyond state borders.
While the constitutional amendment does not explicitly change this restriction, enabling legislation can later amend these provisions. This remains contentious as lawmakers work out the details of how the new betting scheme would work.
The future of LR 20CA is uncertain, as Nebraska legislators have differing opinions. Some see it as necessary to regulate online gambling in an organized manner, but others are wary of expanding gambling access.
Sen. John Cavanaugh was concerned with mobile betting but knew that inaction might leave the state vulnerable to a ballot measure by industry. When gambling companies push the issue straight to voters, the bill crafted could be broader and less constrictive than one crafted by lawmakers.
Nebraska legalized retail sports gambling in November 2020 through a state referendum but only saw in-person betting come alive at WarHorse Casino Lincoln more than two years later, in June 2023. The state's conservative tactics are a direct reversal from others, most of which rapidly developed mobile betting afterward.
The Nebraska Legislature will adjourn on June 9, and bills from this session may be carried over to 2026. This gives lawmakers more time to work out the proposal before having the option to take it to a statewide vote.
