Legislative Bill Represents a Significant Step Towards the Legalization of Online Sports Betting in Nebraska

NEBRASKA (July 25, 2024) — The introduction of Legislative Bill 13 by Senator Eliot Bostar represents a significant step towards the legalization of online sports betting in Nebraska. This bill, if passed, would amend the state constitution to allow racetrack operators to offer online sports wagering under the Nebraska Racetrack Gaming Act. This is a notable development following the legalization of retail betting in 2021.

Key aspects of LB13 include:

1. Online Sports Betting Legalization: Existing gaming operators would be able to launch online sports betting platforms.
2. Repeal of In-State College Betting Ban: The current prohibition on betting on in-state college sports teams would be lifted. However, player prop bets on Nebraska college athletes and in-game bets on Nebraska college teams would still be prohibited. Additionally, betting on the performance of any athlete under 18 years old would remain banned.
3. Revenue Allocation: 90% of the tax revenue from sports betting would be directed towards property tax relief through the Property Tax Credit Cash Fund.

Governor Jim Pillen has expressed his support for the bill, emphasizing the need to retain revenue within the state.

In addition to LB13, Senator Carol Blood introduced LB6, the Fantasy Contests Act, which aims to legalize paid-entry fantasy contests. Unique aspects of this bill include:

1. Broad Definition of Fantasy Contests: The bill would cover both peer-to-peer and against-the-house fantasy contests.
2. Revenue-Based Licensing Fees: Operators would pay an initial registration fee of $10,000 and an annual renewal fee of 6% of their gross gaming revenue from the previous 12 months, with no additional taxes.

These legislative efforts reflect Nebraska’s evolving approach to gaming and its potential impact on state revenue and tax relief.

SOURCE: LI Staff Report.