Online betting proponents in Nebraska will have to wait until at least January to restart the political debate about online sports betting. The pause comes after a special property tax legislative session wrapped on Tuesday without addressing the proposed legalization.
After over three weeks of tossing around solutions to lower Nebraska property taxes, lawmakers abandoned a bill containing a constitutional amendment and framework that could have made Nebraska online betting a reality.
Had the bill passed, the state could likely have benefitted from online betting tax revenue by mid-2025. Presently, sports betting is limited to in-person betting at Nebraska’s racetrack casinos.
Despite leaving online wagers on the legislature floor, Gov. Jim Pillen signed several bills in a $185 million property tax relief package at a Tuesday press conference. However, Pillen acknowledged the trimmed-down relief package is just a “first step forward.”
More needs to be done. Together we can, and together we will.
Ballot Question Abandoned as Senators Speak Out
On July 25, Pillen convened a special legislative session to address the skyrocketing property taxes facing Nebraska homeowners. As part of that conversation, lawmakers considered expanding Nebraska gambling to include online sports betting.
Sen. Eliot Bostar led the online charge with Bill LR3CA. This referendum would have asked Cornhuskers whether they would support online sports betting if taxes were earmarked for property tax relief on the November ballot. Bostar calculated that the state would generate over $30 million annually by allowing Nebraska casinos to take their sportsbooks online.
On Aug. 12, LR3CA passed Nebraska’s Unicameral General Affairs Committee with a 5-2 vote. However, the full chamber ultimately bypassed the bill during the special session.
Opponents of Nebraska online sports betting, including legendary Cornhuskers football coach Tom Osborne, cautioned the state about rushing into further gambling expansion. They argued it’s been less than four years since Nebraskans authorized amendments to allow slots, table games, and retail sports betting at state racetracks.
Further, while Osborne expressed skepticism about Bostar’s lofty tax estimates, others said even if accurate, that would be little more than a drop in the bucket.
Complicating matters, on Aug. 16, 13 Nebraskan state senators released a statement against online betting, citing increased addictions as central to that opposition.
Senators John Lowe, Ray Aguilar, Joni Albrecht, Robert Clements, Robert Dover, Steve Erdman, Steve Halloran, Brian Hardin, Rick Holdcroft, Loren Lippincott, Rita Sanders, and Julie Slama signed the joint statement:
Nebraska very recently legalized casinos largely on the promise of property tax relief that has failed to manifest itself. Expanding gambling further will inevitably lead to expanding the associated addictions and adds to more suffering in our communities.
Online sports betting turns every cell phone into a 24/7 handheld gambling device, leading to new addictions. The National Council on Problem Gambling reports the legalization of online sports betting has resulted in the risk of gambling addiction increasing 30%, with a 150% increase to their addiction helpline. The main demographic driving this increase is young people, with 20% of college students spending financial aid on gambling.
“Any effort to to expand gambling further or legalize online sports betting, be it a Constitutional Amendment or a statutory end-run, is a poison pill and will lose our support for the bill,” the Senators added.
Anti-gambling groups, including Gambling with the Good Life and Omaha’s Open Door Mission, have echoed that message of harm.
Online Betting on Ice Until at Least 2026
Nebraska’s next chance to bring online betting to the state could come in January. Gov. Pillen said he intends to introduce a priority sports betting bill in January. In this case, priority means lawmakers would consider the bill ahead of others during the debate.
If that doesn’t happen, Nebraska sports betting will be out of contention until 2026 and unlikely to launch before mid-2027. That’s due to the state constitution, which limits statewide ballot referendums to even-numbered years.
Considering this timeline and the extra pushback traditionally shown to iGaming efforts, it’s fair to expect that Nebraska online casinos are still a few years away.
First Bets Made at WarHorse Casino Omaha
Nebraska retail casinos are a different story.
On Aug. 6, a who’s who of nearly 200 Nebraskan officials gathered to celebrate the opening of Omaha’s permanent WarHorse Casino.
Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska (WTN), partnered with the Nebraska Horsemen’s Benevolent and Protective Association (NHBPA) to build the casino.
Reportedly, NHBPA’s president, Garald Wollesen, and Aaron Lapointe of the Winnebago tribe placed the first ceremonial bets. Notably, both opted to kick things off with the Mighty Cash Ultra 88 slot.
WarHorse Omaha received the approval of the Nebraska Racing and Gaming Commission (NRGC) last month, becoming the state’s second WarHorse-branded casino and its fourth retail sportsbook.
The WTN also operates the state’s Iron Horse and Native Star casinos alongside Iowa’s WinnaVegas Casino property.
WarHorse Omaha is at 63rd and Q streets, adjacent to Horsemen’s Park racetrack. At nearly 60,000 square feet, the venue features 800 slot machines and 19 live gaming tables. Amenities also include a sportsbook and 100 simulcast screens.
Lance Morgan, CEO of WarHorse Gaming, estimates Douglass County and the City of Omaha will each earn about $6 million annually from the new casino.
The majority (70%) of that tax haul benefits the state property tax fund. Another 25% goes to the host county. If partially within a town or city, that money is shared equally with the county.
Nebraska’s Compulsive Gamblers Assistance Fund and the state’s general coffer split the remaining 5%.
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