Nebraska’s Push for Legal Online Sports Betting Advances with Two Key Bills
Overview of Nebraska’s Online Sports Betting Proposals
Nebraska is once again examining the prospect of legalizing online sports betting, as two significant legislative proposals from 2025 carry over into 2026. Despite previous attempts falling short, this period might be pivotal for introducing regulated mobile wagering within the state.
Legislative Bill 421: Expanding Betting Through Racetracks
One prominent bill under consideration is Legislative Bill 421, championed by Senator Stanley Clouse. This proposal aims to amend the existing Racetrack Gaming Act to incorporate a legal framework for online sports betting. Under this bill, Nebraska’s racetracks, which have been permitted to operate retail betting since 2021, could also offer online sportsbooks.
The Nebraska Racing and Gaming Commission would see its oversight broadened to include regulation of the online betting market. Importantly, LB 421 proposes to permit wagers on games involving Nebraska college teams, a practice currently banned.
The bill outlines a tax structure where online sports betting would be taxed at 20%, the same rate as physical betting venues. Ninety percent of the collected taxes would fund the Property Tax Credit Cash Fund, while 3.5% each would support the Racing Cash Fund and Racetrack Gaming Fund. The remaining 3% would be allocated to the Compulsive Gambling Assistance Fund.
Tax revenue projections estimate that mobile betting could bring in approximately $9.3 million in its first operational year, with potential to double as the industry grows.
Legislative Resolution 20CA: Putting the Decision to Nebraska Voters
The second proposal is Legislative Resolution 20CA, which also advocates the regulation of online sportsbooks. This resolution would permit state racetracks to collaborate with online betting companies to operate sportsbooks.
Unlike LB 421, the fate of LR 20CA depends on voter approval, as it may appear on the ballot in November 2026.
While the General Affairs Committee previously endorsed advancing this resolution, concerns were raised about increased risks of gambling addiction. The resolution passed an initial Senate vote but was later withdrawn due to insufficient legislative support.
Should LR 20CA be enacted, experts anticipate it could generate up to $32 million annually in tax revenues.
The Road Ahead for Legalized Online Betting in Nebraska
Both LB 421 and LR 20CA underscore Nebraska’s ongoing commitment to legalizing online sports betting and harnessing the economic potential of this expanding market. The state awaits further developments to determine which approach, if any, will successfully establish a regulated mobile betting environment.
