Efforts to legalize online sports betting in Nebraska are ongoing, underpinned by two individual bills that have carried over from 2025.
In the Cornhusker State, a two-year legislative window applies, meaning that any prospective legislation that falls during the first session can continue into the next one to be considered again.
There is optimism that 2026 can be the year that online sports betting is introduced, but obstacles are still in the way as they have been previously.
Lawmakers have another chance to resolve this issue and they will need to consider that the impasse could be taken out of their hands, but more on that later.
What is the current situation with sports betting in Nebraska?
In Nebraska, a state that has been historically conservative and restrained on the gambling question, the current betting framework is a convoluted one, with online sports betting prohibited.
Under the Nebraska Racetrack Gaming Act, licensed horse racetrack venues such as WarHorse Casino and Grand Island Casino Resort are allowed to provide casino-style gaming offerings.
This includes slot machines and table games such as blackjack and roulette.
Additionally, the Nebraska Lottery is the official state lottery, which also facilitates other draws such as Powerball and Mega Millions, while other charitable games are permitted under local laws.
As things stand, the only form of sports betting that is legal in Nebraska is retail or in-person.
Over the last couple of years, legislative changes have paved the way for retail sports betting concessions at licensed racetrack casinos, as detailed above. This allows wagers to be placed on many professional, national and international sports, but not on in-state collegiate teams.
This is a crucial point given the prominence of and depth of support for the Nebraska Cornhuskers, the state football team that competes in the Big Ten Conference.
They have played at the Memorial Stadium since 1923 and have sold out every home game since November 1962, the longest such record in NCAA history across all sports.
For these reasons, there are local and political sensitivities around allowing other wagers, such as in-game parlays and individual athlete performance bets on college games.
One of the carried-over bills wants to remove the ban.
Senator Stanley Clouse’s Legislative Bill 421
The fresh drive to legalize online sports betting comes from Senator Stanley Clouse’s Legislative Bill 421 (LB 421) and Senator Eliot Bostar’s Legislative Resolution 20CA (LR 20CA).
Clouse’s bill did reach a General Affairs Committee hearing early last year, but it has been sidelined until now.
LB 421 pledges to amend the existing Racetrack Gaming Act to deliver a wider scope for betting in the state, with the remit of the Nebraska Racing and Gaming Commission to be increased to oversee it.
Crucially, the racetracks that have been permitted to offer retail concessions since 2021 would be free to launch online sportsbooks for Nebraskans.
As indicated, they would also be able to accept wagers on in-state games involving college teams like the Nebraska Cornhuskers, in what would be a contentious shift.
Proponents of legislative change under LB421 project that $9.3m in taxes would be raised in the first year alone, which could potentially double in subsequent years.
If the bill is approved, the state would tax online sports betting at the same rate as retail gambling – 20% – with a framework in place for the distribution of tax revenues.
Of that, 90% of taxes would be funnelled toward the Property Tax Credit Cash Fund, with 3.5% to be issued to the Racing and Gaming Commission’s Racing Cash Fund and the Racetrack Gaming Fund.
The remaining 3% would be allocated to the Compulsive Gambling Assistance Fund.
Nebraska’s electorate could be given the opportunity to decide
The other piece of legislation back on the agenda is Senator Eliot Bostar’s Legislative Resolution 20CA (LR 20CA).
There are similarities to Clouse’s bill, but the fundamental difference is that LR 20CA would be approved or vetoed by the electorate in Nebraska with a statewide vote, taking the ultimate power from lawmakers.
That is, if it reaches the ballot paper in November this year.
Concerns raised about the bills
LR 20CA would allow racetracks to partner with betting companies to form their own online sportsbooks, but some concern has been raised about this issue.
Last year, the General Affairs Committee voted 6-2 to back the advance of the Bill, but there was consternation over the potential rise in gambling-related harm from mobile betting if it was legalized.
The Senate passed the paper in an early vote, but after further scrutiny, it was withdrawn due to insufficient backing from lawmakers.
If a breakthrough is reached this year, proponents have made the case that a massive $32m of tax revenues could be raised, with a direct uplift for the state purse and social needs.
Lawmakers in states across the US continue to grapple with the issue as there is an appetite for reform and revenue growth, but this is tempered by concerns over gambling harm and a prevalent conservative approach in places like Nebraska.
Senator Rick Holdcroft was one of those to vote against the Bill, highlighting a spike in gambling addiction issues since a previous vote in 2020 to expand gambling offerings.
Third route to deliver online sports betting in Nebraska
There is also a pragmatic argument for reform, as seen in Alabama, where efforts have been renewed to introduce a state lottery in 2026.
The activity is still outlawed there, but state residents are travelling to nearby jurisdictions for lottery and other gambling forms to indulge in the activity, with their own state purse losing out.
Beyond the two bills that are back on the table, there is another option to deliver online sports betting in the Cornhusker State.
It is possible to form a coalition to raise a petition, but this requires significant buy-in from voters.
A petition would require signatures from at least 10% of the state electorate, as well as a minimum of 5% of voters in 38 of Nebraska’s 93 counties.
This was the approach taken by Missouri two years ago, when the state’s major sports teams added their weight to attain the voters’ signatures.
Ultimately, this route was successful, with online sportsbooks open and active in Missouri since December 2025.
The online sports betting debate in Nebraska is one to monitor this year, and if efforts are successful, it presents a fertile opportunity for significant growth in the market.
