Introduction
Nebraska is currently at a crossroads regarding the legalization of online sports betting. Lawmakers and gaming industry stakeholders recently gathered in Lincoln to discuss the potential expansion of sports betting to the internet. The issue remains highly divisive among stakeholders, with strong arguments on both sides.
Current Legislation
At present, sports betting in Nebraska is limited to retail operations at commercial casinos. Some lawmakers are advocating for the expansion of sports betting to include online platforms. This move could potentially open up a new revenue stream for the state, but it also comes with its own set of challenges and controversies.
Economic Impact
Nebraska is missing out on a significant economic opportunity. The state could tap into a $1.6 billion industry and generate $32 million in annual tax revenue. Currently, this money is going to neighboring states like Iowa, Colorado, Kansas, and Wyoming. Legalizing online mobile sports betting could significantly boost state revenues dedicated to the property tax credit fund. This is a compelling argument for many lawmakers who are looking for ways to ease the financial burden on homeowners.
Political Actions
The Nebraska Legislature is currently in a special session called by Gov. Jim Pillen to find ways to ease property tax burdens on homeowners. State Sens. Eliot Bostar and Terrell McKinney are among the lawmakers who support online sports betting as a viable solution. They argue that the additional revenue could be used to fund essential services and reduce the need for higher property taxes.
Constitutional Amendment Requirement
For online sportsbooks to operate in Nebraska, residents would need to amend their state constitution through a statewide ballot referendum. Such referendums can only be held in even-numbered years. This means that if the issue is not acted upon quickly for the November ballot, it will have to wait until at least 2026. This adds a layer of urgency to the ongoing discussions.
Stakeholder Opinions
Danny DiRienzo from GeoComply highlighted an interesting point during the discussions. He noted that many location checks processed from an Iowa cornfield near the Nebraska border likely indicate Nebraskans crossing over to place legal wagers. This suggests that there is already a demand for online sports betting among Nebraska residents, even if it means crossing state lines to do so.
Opposition Views
Not everyone is on board with the idea of legalizing online sports betting. Tom Osborne, former coach of the Nebraska Cornhuskers football team and a political operative, remains an outspoken critic. He questioned the lofty tax revenue projections and expressed concerns about the potential social impact of online gambling. Osborne’s views resonate with a segment of the population that is wary of the risks associated with gambling.
Consumer Protections Argument
Gov. Pillen argues that people are already betting on sports online using offshore, unregulated websites without consumer safeguards. Legalizing online sports betting would provide protections and benefits that are currently lacking. This includes measures to prevent underage gambling and to offer support for those who may develop gambling problems. The governor’s argument is that regulation can turn a risky activity into a safer, more controlled one.
Industry Movements
Major sportsbooks like DraftKings, FanDuel, BetMGM, and Caesars Sportsbook have shown interest in the Nebraska market. They even considered funding an initiative for an online sports betting question before voters. However, they decided against it due to close polling outcomes and high campaign costs estimated around $7 million. This indicates that while there is interest from the industry, the path to legalization is fraught with challenges.
Conclusion
The debate over online sports betting in Nebraska is far from over. With significant economic benefits on one side and strong opposition on the other, the issue remains highly contentious. As the state legislature continues its special session, the future of online sports betting in Nebraska hangs in the balance. Whether or not the state will move forward with legalization will depend on a variety of factors, including political will, public opinion, and economic considerations.
