Governor Pete Ricketts of Nebraska Signs Legislation Allowing for On-Site Sports Wagering
Let's Dive into Nebraska's Betting Landscape
Nebraska Governor Pete Ricketts has signed LB 561, a bill that sets the stage for sports betting at in-person locations, paving the way for casino gaming and certain changes to keno. The bill, which lawmakers sent on May 20, allows existing tribal casinos, racinos, and horse racetracks to apply for licensure.
Increasingly, it seems that Nebraska residents regard sports betting as part of the "all games of chance" they legalized via a ballot in November 2020. However, it's worth noting that in some states, sports wagering can be categorized as a "game of skill."
The bill modifies and reorganizes the State Racing Commission, renaming it the State Racing and Gaming Commission. With an emergency clause, regulators can promptly begin developing regulations and the application process, with the expectation that bets could be taken at some locations by the year's end.
Sen. Tom Briese, the bill sponsor, pointed out that the voters' mandate included the desire for casinos at racetracks and the associated property tax relief. He introduced LB 561 to clarify the voters' approved games, aiming to maintain consistency with Nebraska values.
Placing Your Bets - In Person Only
The new law restricts sports betting to in-person locations and forbids wagering on Nebraska college teams. As a result, fans and bettors in Nebraska need to look to nearby states such as Iowa, Colorado, or soon-to-be Wyoming for sports betting options using a mobile app or in-person betting. Conversely, they can stick to betting on Nebraska teams in Illinois, as betting on in-state Big Ten teams is also prohibited there.
The provision banning betting on Nebraska college teams, referred to as the "college carveout," has raised concerns that it may fuel unregulated betting on the black market. However, during debate, lawmakers appeared indifferent about the potential loss of tax revenue due to the carveout or lack of mobile betting.
Stuck at a Stalemate - Nebraska's Mobile Betting Dreams
Currently, Nebraska allows retail sports betting at licensed racetrack casinos but shuns mobile sports betting. Despite efforts to legalize mobile sports betting through a constitutional amendment known as Legislative Resolution 20CA, progress has faltered. The resolution aimed to put mobile wagering on the ballot for November 2026, but it failed to gather enough support in the state legislature.
While Nebraska adjusts, states like Louisiana and Maryland have already embraced both retail and mobile sports betting. Given the revenue generated from mobile betting, these states have gained a significant competitive edge. Compared to other states such as Louisiana and Maryland, Nebraska lags behind due to legislative challenges and concerns about the social risks associated with online gambling. Advocates in Nebraska are considering alternative paths, like a citizen-initiated ballot proposal, to advance mobile betting.
[1] Nebraska Legislature - LB 561, https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=45624[2] Omaha World-Herald - Mobile sports betting plan stalls in Nebraska Legislature, https://omaha.com/news/local/mobile-sports-betting-plan-stalls-in-nebraska-legislature/article_20e977e2-7414-577c-8bc2-40a9b0fd3496.html
- Despite the introduction of sports betting in Nebraska, fans and bettors looking to place sports-betting wagers using a mobile app must travel to neighboring states like Iowa, Colorado, or Wyoming, as the new law only permits in-person sports betting and bars wagers on Nebraska college teams.
- While Nebraska has allowed retail sports betting at licensed racetrack casinos, the state has thus far resisted the legalization of mobile sports betting, due to legislative challenges and concerns over the social risks associated with online gambling, unlike states such as Louisiana and Maryland, which have embraced both retail and mobile sports betting.
