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A Nebraska special session wrapped up last month without including online sports betting.
Sen. Eliot Bostar offered an expansion to online sports betting as an alternate way to raise revenue to provide property tax relief.
However, the idea was always on the outside looking in after the governor didn’t include it in his original property tax proposal.
Bostar explained to PlayUSA why the special session effort failed and his plans to continue the push for Nebraska online sports betting next year.
“While the effort to authorize sports betting fell short this summer, the positive work done to advance the bill from committee and build momentum for heading into next year was invaluable for getting it across the finish line in the future.”
Online sports betting could have helped lower property taxes
Bostar’s online sports betting proposal started in the General Affairs Committee in two parts. LR3CA was a constitutional amendment needing approval from the legislature and Nebraska voters. Then LB13 included the online sports betting details as well as a stipulation that the CA could appear on this November’s ballot.
“LB13 and LRCA3 were introduced with the full intent of seeing them pass to provide a new revenue stream for property tax relief for Nebraskans,” Bostar said. “The nature of the special session placed the governor’s property tax relief legislation in central focus for senators, making it difficult to find time for supplemental efforts.”
Advancing from General Affairs was the only way to get online sports betting into the conversation for the final property tax bill.
The committee chose only to advance LR3CA, leaving the online sports betting details to be hashed out next year. But LR3CA alone wouldn’t put the question to voters until 2026. So there was no point of it being part of the special session and property tax bill if online sports betting revenue wasn’t going to start coming in until 2027.
Why Nebraska online sports betting stalled in special session
Without LB13, the one final possibility for a special session victory was to get a stipulation added into the property tax bill allowing the CA onto the ballot this November. Then legislators could come back and work out the details early next year. It was a way to get online sports betting done a year and a half earlier.
Nebraska statute requires the legislature to submit ballot measures to the Secretary of State at least four months prior to the election. But the election was less than three months away when the special session concluded. Several proposals requiring constitutional amendments included language to make an exception for special sessions to make the election if passed by Sept. 1.
However, none of those proposals made the final property tax bill. Online sports betting wasn’t going to be the only proposal getting such treatment, effectively ending its chances.
“Productive conversations about a pathway for passage of the sports betting effort continued right up until the end of the special session,” Bostar said. “I am serious about the real revenue sports betting will provide for property tax relief and believe that it would have been significantly helpful for accomplishing the goals of the special session.”
Legislative letter not big concern for next year
When Bostar made a final push last week to get LB13 out of General Affairs, the committee chairman, Sen. John Lowe, organized a letter with 12 of his Senate colleagues opposing efforts to legalize online gambling.
The letter stated:
“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 senators concluded that they would consider any inclusion of online sports betting in the property tax bill a “poison pill” preventing them from supporting its passage.
Bostar doesn’t believe the letter will affect future efforts to legalize online sports betting in Nebraska. A total of 17 senators are needed to block legislation with a filibuster. So, the 13 in the letter aren’t enough.
“I understand that not all legislators always agree on the best policy approach for the state. But the clear opinion of Nebraskans is that they want sports betting to be available, and the obvious benefits for tax relief make authorizing sports betting critical.”
At least five of the 13 online sports betting opponents won’t be in the Nebraska legislature next session, having termed out or due to not seeking re-election, including Lowe.
Nebraska online sports betting at least two years out
Bostar said he plans to continue the effort to expand Nebraska gaming to online sports betting next session.
“I look forward to reintroducing the legislation next year and will work with my colleagues and the governor to find a pathway toward passage to provide revenue for property tax relief for Nebraskans.”
This time, he will have the governor’s support.
Before the special session, Gov. Jim Pillen said this in a press conference:
“Online sports betting is real and it is happening in the state. Whoever wants to do it is doing it, and we’re giving all the revenue to our neighbors. I will put forth, and it will be a priority bill, in January to approve online sports betting.”
With support from the Ho-Chunk Nation, the Indian tribe that will operate three of the six casinos in the state, it seems likely that Nebraska will authorize online sports betting soon. Physical sportsbooks are already operating within Ho-Chunk casino properties.
However, the failure to advance online wagering in this special session is a setback of more than two years. Now the question to amend the state constitution can’t go in front of Nebraska voters until November 2026.
