Nebraska is once again trying to legalize online sports betting, with two separate bills carrying over from 2025. While previous efforts to usher in an era of mobile betting in the Cornhusker State have fallen short of achieving success, this year could be where lawmakers turn things around.
Nebraska Could Make Legislative Strides…
The first of the two measures floating about is Senator Stanley Clouse’s Legislative Bill 421 (LB 421), which was introduced in 2025 and is carrying over into 2026. While the measure did receive a General Affairs Committee hearing in early 2025, it has since been stuck in limbo.
Under Clouse’s bill, Nebraska would amend its Racetrack Gaming Act, introducing a framework for online sports betting. As a result, existing racetracks, which have been allowed to offer retail betting since 2021, will also be allowed to launch online sportsbooks. In the meantime, the Nebraska Racing and Gaming Commission’s responsibilities will be expanded to also cover the online betting industry.
Another notable change would be allowing local bettors to wager on in-state games featuring Nebraska college teams – something that is currently prohibited.
Per LB 421, Nebraska would tax online betting at the same rate it applies to in-person betting facilities – 20%. The bill seeks to allocate 90% of the tax revenue to the Property Tax Credit Cash Fund. The Racing and Gaming Commission’s Racing Cash Fund and the Racetrack Gaming Fund will receive 3.5% each, while the Compulsive Gambling Assistance Fund will get the remaining 3%.
Projections expect Nebraska’s mobile betting industry to generate $9.3 million in taxes in the first year of operation alone. Experts say that this figure could double within a few years.
…Or Leave It to the Voters
The second measure is Legislative Resolution 20CA (LR 20CA), which also proposes regulating online sportsbooks. Per this measure, racetracks in the state will be allowed to partner with online betting companies to launch their own sportsbooks.
This legislative resolution’s fate, however, would ultimately be decided by state voters, should it reach the November 2026 ballot.
Last year’s General Affairs Committee voted in favor of advancing LR 20CA, although some lawmakers expressed concern about a potential spike in gambling addiction should mobile betting be legalized. The bill later passed the first Senate floor vote but was withdrawn due to suboptimal backing.
If LR 20CA succeeds in creating a regulated online sports betting market, it could generate as much as $32 million in tax revenue a year, experts say.
In any case, LB 421 and LR 20CA highlight Nebraska’s continued efforts to legalize online betting and capitalize on the industry’s growth. Whether either of the two approaches will succeed has yet to be seen.
Fiona Simmons
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