In 2020, Nebraska voters approved an expansion of gaming when they passed an initiative that made “games of chance” legal. At the time, there was some question as to whether or not a game of chance includes sports betting. But the legislature later determined it does. That fact begs the question as to why the legislature feels it needs to pass laws that would make digital sports betting legal.

In 2022, Nebraska’s Racing and Gaming Commission declined to include language about digital betting in its regulations. Stakeholders asked the commission to include such language. The current law defines a gaming device as any “electronic, mechanical or other device which plays a game of chance when activated by a player.” It goes on to explain that sports wagers may be placed on “any system of wagering as authorised by the commission.”

Hearing reveals education is needed

Despite that, the 2024 legislature believes that it must not only create a framework for digital wagering but also send the decision to allow it to the voters.

To that end, the General Affairs Committee Wednesday (31 July) held a two-plus hour hearing that revealed that lawmakers are not educated on digital sports betting or daily fantasy sports. The questions asked were reminiscent of those raised in other states that were unable to pass legislation.

Traditionally, it is difficult to move any issue forward if lawmakers are starting cold in session. Education and lobbying ahead of sessions helps prepare lawmakers to make informed decisions.

Nebraska shares a border with five states, three of which offer digital wagering. The state most often mentioned in relation to sports betting is Iowa. According to multiple witnesses, the Nebraska-Iowa border is a busy place during football season.

“I actually don’t know if this is the busiest cornfield in the state, in the US,” GeoComply’s Danny DiRenzo told the committee. “I suspect it is. But you can see off the first exit … heading into Iowa, there is literally nothing there, and GeoComply processed 500,000 geolocation checks. I would submit that is not organic Iowa sports betting traffic. That is very likely all related to Nebraskans crossing the border to place a legal wager.”

Lance Morgan, CEO of Ho-Chunk, Inc., owner of the WarHorse Casino, shared a story about how a friend had a Super Bowl party and most of his friends left at halftime to go place bets in Sioux City.

Survey: Voters support legal digital Nebraska sports betting

There’s likely no question that Nebraskans are leaving to Iowa to bet. The current law bans betting on Nebraska college teams playing at home. It is the only legal betting state with a Power-5 conference team that does not allow betting on the home team.

But the key question is what will Nebraska do? Senator Eliot Bostar filed a package of bills that include a framework for legal digital wagering and a constitutional amendment. Bostar said $18m in tax dollars flow into Iowa during football season alone, and $60m over the course of a year. He also quoted a June survey that revealed the 60% of Iowa voters support legal online betting.

Behind the push for legal sports betting is a reduction in property taxes for Nebraskans. Bostar’s bill earmarks 90% of tax revenue for property tax relief. He said that the poll found that 65% of voters would back legal digital wagering if tax dollars go to property tax relief.

“I think we’re leaving resources on the table,” Bostar said. “We’re not just doing that, we’re giving it away.”

Next stop is executive committee

A key part of Wednesday’s discussion was whether or not a constitutional amendment could even get on the November ballot. The deadline for such a referendum has passed. But Bostar said his LB13 includes a provision to make an exception. Both of his bills must pass for the legislature to move forward.

The committee did not vote Wednesday. The issue will now move to the General Affairs executive committee for further consideration. The special session began 25 July. It could run through the end of August.