Nebraska To Consider Legalizing Mobile Sports Betting

Betting Revenue Could Reduce Property Tax Burdens

July 16, 20240 112 3 minutes readGambling News

Nebraska To Consider Legalizing Mobile Sports Betting — JIM WATSON/AFP VIA GETTY IMAGES

Constitutional Amendment Would Be Needed
Concerns About Losing Revenue To Iowa

Nebraska — one of the states that still has yet to legalize online sports betting — is weighing the idea of legalization as a means to provide funds for the state that would otherwise be raised from property taxes.

This Nebraska mobile betting tax relief is a plan that could make the idea of legalized online sports betting popular enough to pass muster in a state that, so far, hasn’t shown much of inclination toward legalization efforts.

State gaming officials plan to ask the governor, Jim Pillen, and lawmakers to consider instituting mobile and online sports betting at a July 25th special session.

By doing so, they argue, the state could reduce property taxes on residents because of revenue that would be made up by taxing sports betting.

Per one casino operator, Ho Chunk Inc., which operates three retail casinos across the state that could turn into sports betting sites if this proposal is approved, 65 percent of polled Nebraskans were in favor of such a plan.

Of course, that statistic is coming from a relatively biased source but the point remains that legalized sports betting has become more and more popular even in states where it would have once been unheard-of to even consider legalization.

Plus, more and more state governments are realizing that they can do good things for their states with the tax revenues that are collected from taxing sports betting. It’s a win-win for all parties involved but the road to legalization can be winding and far from a straight line.

Constitutional Amendment Would Be Needed

For the Nebraska mobile betting tax relief to come to fruition, there would need to be an amendment to the state constitution. In Nebraska, this would require the amendment initiative being put on November’s ballot giving state voters the chance to accept or reject the plan.

And, in order for the initiative to be put on the ballot, 30 lawmakers would have to vote for its inclusion. Right now, that seems to be the major obstacle.

However, it’s important to remember that Governor Pillen has indicated that he is in support of the plan even though he himself isn’t in favor of betting legalization. His goal is to reduce property tax burdens by half, an aim that would require an enormous amount of increased revenue from other sources in order to balance the state’s budget.

Legalizing sports betting wouldn’t come close to providing those revenues on its own but it would help the state get there.

Money from betting apps could work in line with the types of spending cuts that Governor Pillen is said to be aiming for in order to raise the funds needed to achieve the property tax reduction.

There’s also some urgency needed on this issue because this special session would be the last opportunity to get voter input on legalizing mobile and online sports betting until November 2026.

So, there’s a real push within the governor’s office and state legislature to get this done and on the ballot in time for November’s election day.

Concerns About Losing Revenue To Iowa

One lawmaker, in considering Nebraska mobile betting tax relief, noted that Nebraska residents can easily drive into neighboring Iowa — where online sports betting is legal — to place bets. State Senator Terrell McKinney mentioned this concern as one of the motivating reasons behind his, and other’s, support of the plan.

Nebraska doesn’t want to lose out on all of this betting-related revenue to a state right next door.

Under this logic, if there is such demand for legal sports betting in Nebraska that residents are willing to cross state lines to place their bets – then it would be silly for Nebraska to not implement the infrastructure and legal backing for Nebraska to reap the financial rewards of those bets.

Also, by keeping residents in the state, they can make sure that those residents’ related expenditures — like food or gas for those trips — are kept in Nebraska as well. There are plenty of cascading effects of controlling the gambling activity of residents.

So, with all of these good reasons as to why Nebraska should legalize online and mobile sports betting, it seems like only a matter of time before legalization actually occurs.

The question is if it will be done in time for this special session and November election so that the governor’s goal of reducing the property tax burden on residents can actually be achieved. On that tight timeline, it may be a tough call.

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