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A report from independent research firm Eilers & Krejcik Gaming estimates Nebraska could generate about $87 million in tax revenue from legal online sports betting over five years. The analysis, commissioned by Tax Relief Nebraska, is based on modeling assumptions about bettor participation, wagering volume, and how much activity would shift from existing gambling options or out-of-state platforms.
Those projections depend on expected adoption rates among Nebraska bettors, average spending levels, and how much betting activity shifts from existing gambling options or out-of-state platforms. The estimate also assumes promotional credits and operator costs would reduce the taxable amount before revenue reaches the state.
Forecast depends on betting behavior and market assumptions
If 70% of the tax revenue were used as property tax credits — as is the case with voter-approved casino gambling — total relief over five years could reach about $61 million. The petition comes amid an ongoing structural deficit, and supporters argue legalization could help stabilize the state budget.
Tax Relief Nebraska is petitioning to legalize online sports betting in the state and place the issue on the 2026 ballot.
According to Jordan McGrain, a petition sponsor, the effort is ahead of schedule in signature gathering. He said the group commissioned the report to show how legal online sports betting could support property tax relief, a key issue in Nebraska in recent years.
Advocates link sports betting revenue to tax releief
State Sen. Brad von Gillern, chair of the Revenue Committee and a vocal opponent of online sports betting, remains unconvinced.
“If people are voting for the online gambling initiative believing it’s going to substantially change their property tax bill, they’re going to be sadly disappointed,” he said.
Von Gillern argues the projected revenue would not significantly affect property tax relief or the structural deficit. In an article by the Nebraska Examiner, he said annual revenues would amount to about 1% of the state’s current property tax program.
Lawmakers have debated online sports betting for years
Efforts to legalize online sports betting in Nebraska are not new and have been debated for several years. Multiple legislative attempts have failed due to insufficient support. Critics argue legalization would effectively encourage gambling, and that potential revenue does not outweigh social costs.
The most recent effort involved a bipartisan proposal from State Sen. Stanley Clouse of Kearney and Sen. Eliot Bostar of Lincoln. Bostar introduced a constitutional amendment to let voters decide, while Clouse introduced Legislative Bill 421 to regulate the industry.
LB 421 was projected to generate about $70 million in tax revenue over four years, according to its fiscal note. It also would have given the state control over taxation of online sports betting, which proponents say could have increased revenues.
Clouse has said he does not endorse gambling but acknowledges it is already occurring in Nebraska despite legal restrictions. McGrain also noted that all neighboring states except South Dakota have legalized online sports betting, arguing Nebraska is losing potential revenue.
Ballot initiative could decide future of online sports betting
Clouse and other supporters expressed confidence that voters would consider a ballot initiative if the Legislature did not pass the bill. “Now, we will live with what the voters decide,” Clouse said.
Von Gillern said he would implement the policy if voters approved it, despite his opposition.
Clouse agreed the policy would likely have a limited impact on property tax relief or budget deficits but said it would broaden the state’s tax base.
He also said a portion of revenue should go to the state’s Compulsive Gambling Fund. McGrain proposed allocating 2.5% of funds to the program, consistent with casino gambling.
McGrain added that lawmakers are not sufficiently focused on new revenue sources in budget discussions, instead emphasizing spending cuts and sales tax changes. He said legalizing and taxing online sports betting would be a step forward, even if the fiscal impact is limited.
“We have to find the revenue somewhere,” he said.
Von Gillern warned the state may be nearing the limit of what it can provide in property tax credits, noting the current program accounts for about 20% of state spending. He said he still prefers offsetting local levies rather than creating new revenue streams.
