Nebraska Considering Potential Amendment to Legalize Online Sports Wagers in Constitution
Nebraska Voters Push for Online Sports Betting Legalization in 2026
Nebraska residents are gearing up for a potential referendum on the issue of online sports betting, as supporters collect signatures to place a constitutional amendment on the 2026 ballot.
The proposed amendment, if successful, would legalize online sports betting in the state, with the aim of keeping tax revenue within Nebraska and preventing it from flowing to neighbouring states. The drive is being led by gambling advocates, including Lynne McNally of WarHorse Casinos, who believes that online sports betting is necessary to prevent tax money from being lost to neighbouring states.
If passed, the amendment could generate an estimated $32 million in total tax revenues over the next 2.5 years, according to Sen. Eliot Bostar (D-29). However, detractors of online sports betting have voiced concerns about rising problem gaming rates and overpromises of reduced property tax rates from gambling revenues.
To place a referendum question on the 2026 election ballot, supporters need to gather signatures from at least 10% of Nebraska's 1,257,860 registered voters, which equals 125,786 certified signatures.
The push for online sports betting in Nebraska comes after Missouri legalized sports betting through a voting referendum, pushed by its sports franchises. If Nebraska's efforts are successful, it would mark the first time that Nebraska state voters have had a direct say in the issue of legalizing online sports betting.
The discussions surrounding Sen. Bostar's online sports betting bill have been met with concerns from legislators about the industry's potential signature drive. In March 2023, Sen. Bostar (D-29) introduced legislation, LR20CA, to legalize online sports betting through a constitutional amendment. The bill was approved by the Nebraska Senate by a 27-16 vote in April 2023, but a second vote was blocked by a filibuster.
If Sen. Bostar's bill is not approved, members of the Nebraska casino industry have indicated that they will attempt a signature drive to place a question on the ballot, similar to what happened in Missouri in 2024.
Nebraska currently allows retail sports betting at its brick-and-mortar casinos and taxes the game at a rate of 20%. If online sports betting is legalized, it is expected that the state would have more control over how it is regulated if legislators approve their own crafted bill, rather than relying on a constitutional amendment.
The issue of online sports betting has sparked debate among Nebraska lawmakers, with Sen. John Cavanaugh (D-9) expressing concerns about legalized sports betting but acknowledging the legislature's role in controlling ballot content. Despite these concerns, the push for online sports betting in Nebraska continues to gain momentum, as supporters gather signatures to take the issue into the hands of the state's voters for the 2026 election.
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