On March 10, Nebraska lawmakers held a lengthy hearing on broadening online sports betting, the first time the matter has been discussed in a public legislative forum.
The Nebraska Legislature's General Affairs Committee listened to testimony from advocates and opponents of four bills introduced on online sports betting for over three hours. While no vote was taken, the voices of the opposition dominated the session with concerns over addiction and social implications.
Sports betting in retail locations has been legal in specific Nebraska locations since 2023, following a broader referendum on gambling that passed in 2020. However, legislation to introduce mobile betting has repeatedly stalled in the legislature.
Bills to expand the betting framework, including from previous legislative sessions and a summer special session, have not gained traction.
The newest push is LR20CA, a constitutional amendment that would let voters decide to legalize online wagering. If passed, the amendment would permit the passage of framework bills to accompany it.
One of the main arguments of the debate was the projected tax haul from legal Internet betting. Ho-Chunk Incorporated CEO and President Lance Morgan claimed Nebraska would collect $32 million a year from online sports betting, with a 20% tax rate.
However, state fiscal projections by legislative analysts put the figure at a more conservative $19 million a year beginning in the 2027 fiscal year.
Arguments For and Against Online Betting
Proponents of online sports betting argue that legalization and regulation would stem illegal wagering, which already occurs in the state. They cite tax dollars and the spur to economic growth as benefits and the want to redirect existing black-market wagering into a regulated state system.
One of the early proponents of internet expansion was the business entity of the Winnebago Tribe, Ho-Chunk Inc., which currently boasts land-based gaming through WarHorse Casino Lincoln. For Morgan, it's essential to be inside the market and not on the backseat of giant national companies.
Morgan said that four of the largest gambling companies have a monopoly in the U.S. market and that joining an already branded company would be the most viable way for Nebraska to proceed. He framed the remarks as economic inclusion, not simply the expansion of gambling opportunities.
The opposition countered that legalizing online gambling will not end illegal gambling but will only drive more overall gambling activity. Concerns over addiction were the focus of detractor arguments, with speakers referring to possible social damage.
The anti-gambling segment also stressed concerns about addiction and social harm. Les Bernal, a representative of Stop Predatory Gambling, called lawful betting "an epic policy failure," claiming that states with legal sports betting have rising levels of addiction and that social costs outweigh any economic benefits.
The legalization of Nebraska’s online sports betting bill comes at a time when gambling addiction is on the rise throughout the U.S. A study published by JAMA Internal Medicine found that the amount of Americans searching for gambling-related help had increased in recent years in tangent with the expansion of sportsbooks and online gaming.
