Effort to Legalize Online Sports Betting Ends in Nebraska
Nebraska’s latest effort to legalize online sports betting has been shelved for the year.
LISTEN TO THIS ARTICLE:On Wednesday, State Sen. Eliot Bostar officially withdrew his proposal to advance a constitutional amendment that would have placed the issue on the 2026 election ballot. The proposed amendment, LR20CA, was introduced in January and advanced out of the General Affairs Committee with bipartisan backing.
Earlier in April, LR20CA cleared its first hurdle in the Nebraska Legislature, passing 27-16 in the first of three required floor votes. However, the measure lost momentum during Wednesday’s legislative session as mounting opposition led Bostar to withdraw the bill due to insufficient support among lawmakers.
Mounting Concerns Over Problem Gambling
Prominent opponents included former Nebraska football coach and political figure Tom Osborne, as well as former Governor Kay Orr.
Critics of the proposal cited concerns about problem gambling, as well as potential social consequences such as increased bankruptcy and substance abuse. Supporters, including Bostar, argued that legalizing online sports betting could boost tax revenue and curtail unregulated, offshore gambling activity. Bostar estimated Nebraska could be missing out on $32 million annually by not offering a regulated online betting market, especially as neighboring states already do.
Bostar’s amendment aimed to authorize up to six online sportsbooks within the state. Each operator would have been required to partner with a licensed racetrack. Revenue from sports betting taxes would have been allocated to public education and the Nebraska Environmental Trust, which funds conservation efforts.
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Hopes for 2026 Legislative Session
Several major sportsbook operators, BetMGM, Caesars, DraftKings, FanDuel, and Fanatics, supported the measure. While they’ll need to wait until a future legislative session for another chance, a citizen-led initiative remains an option.
To qualify for the ballot, such an initiative must gather signatures from 10% of the state’s registered voters. Nebraska’s legislative session runs until June 9, and bills can be carried over into the 2026 session, giving proponents additional time to pursue legalization.
Earlier in 2025, Sen. Tom Brandt introduced Legislative Bill 63, seeking to amend current laws to permit both pre-game and in-game wagering on college events involving in-state teams when played within Nebraska.
Currently, state law prohibits betting on in-state college games held within the state’s borders. If LB 63 passes, fans would be able to legally bet on games featuring the University of Nebraska, Creighton University, and University of Nebraska-Omaha, a member of the Summit League.
While this year’s push for online sports betting is on hold, both the ballot initiative path and legislative carryover offer future opportunities for Nebraska to revisit the issue.
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