Will Online Sports Betting in Nebraska Find Its Way to the November Ballot?

Potential Revenue Boost and Governor Support

In 2021, a bill signed by Governor Pete Ricketts allowed for the introduction of retail casinos and sports betting in Nebraska. However, the regulation of mobile sports betting has yet to be addressed. Today, during the special session on July 25, there is an opportunity to make some progress on this matter.

A group of operators has recently made efforts to encourage Governor Jim Pillen to consider the potential of online sports betting. Studies suggest that creating a competitive online sports betting market could add an additional $30 million annually to the state budget.

It appears that Governor Pillen is favorable to the idea supported by operators, and it will be a topic of discussion during Thursday’s special session. The stakes are high for both the state, which could benefit from additional annual revenue, and for operators. If the matter does not progress this week, they probably will have to wait until 2026 for another opportunity to launch its OSB platform in Nebraska.

Tribal Influence and Commercial Operators’ Interest

In the discussion over legalizing online sports betting, the strongest voices come from tribes operating brick-and-mortar casinos. Ho-Chunk, Inc., a company owned by the Winnebago Tribe of Nebraska, is also the parent company of WarHorse Gaming, which owns two retail sportsbooks in Nebraska. It seems that lobbying efforts by Ho-Chunk CEO Lance Morgan have significantly contributed to advancing the issue of regulating the online sports betting market.

“It’s additive. It’s not a tax shift. And so we think that’s a pretty viable option. And we’ve been proposing that to be part of this special session,” said Morgan.

It is worth noting that commercial operators are also keenly interested in this issue. DraftKings, FanDuel, BetMGM, and Caesars are closely working with Ho-Chunk, Inc., observing the developments. Initially, the idea was for operators to run a campaign to get the online sports betting proposal on the November ballot. However, due to strong public support for the idea, the companies have decided to hold off, hoping the proposal will naturally find its way onto the November ballot.

However, the road to fully regulating the market is still long. Thursday’s special session is just a small first step in this direction. Launching the online sports betting market requires constitutional amendments, complicating the matter right from the start.

Road to the November Ballot

During the special session, 60% of lawmakers must support the idea of putting the constitutional changes to a public vote. If this happens, Nebraskans will have the chance to vote on the matter in a November ballot.

Regarding the ballot itself, the outlook is currently quite optimistic. According to polls conducted by Ho-Chunk, Inc. in cooperation with commercial operators, 65% of Nebraskans support making constitutional amendments that would enable the launch of the online sports betting market. Success in this endeavor will require a simple majority and the support of 50% of voters.​

The market seems optimistic about Nebraska, placing significant hope in lawmakers who have the power to trigger a wave of regulatory changes.

The current regulatory landscape for online sports betting is not favorable for anyone. Nebraskans have no options to place bets online, leading to situations where they must travel to states like Iowa to place bets legally. As a result, potential revenue for Nebraska is flowing to neighboring states. The current discussions and actions have the potential to change this dynamic.

In discussions about the profitability of these changes, lawmakers should look closely at Iowa and the annual revenues of online sports betting operators there, which account for 92% of total sports betting revenue. The conclusion is clear: Nebraska, it’s time to take an important step forward.