Nebraska Online Sports Betting Approved During First Vote, Two More Needed

• A Nebraska online sports betting bill has been approved during its first Senate vote
• The bill needs to be approved during two more votes before being sent to the governor
• Nebraska voters will have the final say on sports betting during the 2026 general election if signed into law

Nebraska sports betting today took a big step forward in the Senate, receiving the first of three necessary approvals before being sent to the governor and signed into law.

The Nebraska Senate today approved Sen. Eliot Bostar’s (D-29) legislation, LR20CA, by a 27-16 vote. It was the first of a potential three votes for the legislation, which calls for the legalization of online sports betting through a constitutional amendment.

If approved by the Nebraska Senate, state voters will decide its fate in the form of a ballot question during the November 2026 general election.

Still Long Ways to Go

The vote is the first of a potential three votes before being sent to Gov. Jim Pillen (R) for his signature.

Bostar’s legislation amends the Nebraska Racetrack Gaming Act to allow casinos to offer online sports betting, dedicating the majority of online sports betting tax revenues to property tax relief for state residents. The proposed legislation dedicated 90% of online sports betting tax revenue to the Property Tax Credit Cash fund, which provides property tax relief for Nebraskans.

While his legislation provides a triggering method for legalization, Sen. Stan Clouse’s (R-37) bill, LB 421, provides the framework for online sports betting in the Cornhusker State. His bill allows each of the six Nebraska casinos to partner with up to one online sports betting operator and calls for the State Racing and Gaming Commission to regulate the new form of gaming.

His legislation also removes the current prohibition on sports betting for in-state colleges.

Retail sports betting is currently legal in the state and is taxed at a rate of 20%.

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Casinos Eyeing 2026 Voter Referndum?

Bostar noted in previous discussions that the casino industry in Nebraska is considering proposing its own voters referendum in 2026 to legalize online sports betting. This would be similar to the way Missouri legalized sports betting, as its sports franchises pushed their own voting referendum through the Show-Me State in 2024.

By doing this now, Nebraska lawmakers would have more of a say as to how online sports betting is potentially legalized.

Sen. John Cavanaugh (D-9) said at a previous hearing that sports betting legalization gives him a considerable amount of “heartburn,” but the legislature should have control over what is placed on a ballot rather than Nebraska casinos.