Nebraska Committee Advances Proposal for Online Sports Betting Referendum

The Unicameral General Affairs Committee in Nebraska has moved forward with a legislative proposal that could pave the way for the legalization of online sports betting in the state. On August 12, the committee passed Legislative Resolution 3CA (LR3CA) by a 5-2 vote during a special legislative session focused on reducing property tax burdens.

Public Referendum on the Horizon

LR3CA, introduced by Senator Eliot Bostar, proposes a public referendum that could appear on either this year’s ballot or the 2025 ballot.

The referendum would allow Nebraskans to vote on whether the state should amend its constitution to permit online sports betting.

However, an important amendment was introduced by Senator John Cavanaugh to alter the original language of the resolution. Under the new amendment, if voters approve the constitutional amendment, the state legislature would have the discretion to decide whether or not to actually legalize online sports betting.

Arguments and Potential Impact

During committee hearings, the proposal sparked debate, with arguments both in favor of and against the measure. Senator Bostar, advocating for LR3CA, argued that many Nebraskans already participate in sports betting through unregulated channels, and the state is missing out on potential revenue.

He suggested that legalizing and taxing online sports betting at 20% could generate a new revenue stream for the state’s Property Tax Credit Cash Fund.

Bostar estimated that legalization could bring in approximately $32 million in revenue over the first two-and-a-half years.

LR3CA is paired with Legislative Bill 13 (LB13), a related proposal that would allow existing licensed retail sportsbooks in Nebraska to expand into mobile betting. However, LB13 faced a setback when it failed to advance out of committee by a narrow 4-3 vote.

The future of LR3CA now rests with the full 49-member Nebraska Legislature, which will decide whether the resolution should be brought to the floor for debate. If it gains the necessary support, Nebraska voters could soon have the opportunity to weigh in on the future of online sports betting in the state.