According to a report by Tax Relief Nebraska, the legalization of online sports betting in Nebraska has the potential to generate nearly $87 million in state tax revenue over a five-year span, as advocates aim to place the measure on the ballot for voters in 2026.
The analysis conducted by Eilers & Krejcik Gaming estimates that 70% of the revenue could be allocated to property tax credits, mirroring the current framework utilized for casino gambling. This allocation could equate to approximately $61 million in tax relief during the same timeframe.
Proponents of the initiative argue that this supplemental revenue could assist in stabilizing the state’s budget as lawmakers face a structural deficit, while also reclaiming funds that are currently going to neighboring states where online sports betting is already permitted.
“We need to identify new revenue sources,” stated Jordan McGrain, one of the petition sponsors.
Conversely, critics contend that the anticipated financial benefits are too minor to have a significant impact on property taxes or the overall fiscal health of the state. State Sen. Brad von Gillern, who leads the Legislature’s Revenue Committee, noted that the projected returns would comprise roughly 1% of the existing property tax credit program on an annual basis.
“If people believe that voting for the online gambling initiative will dramatically alter their property tax bills, they are going to be sorely disappointed,” von Gillern remarked.
Previous efforts to legalize online sports betting in Nebraska have been consistently delayed in the state legislature. A recent proposal, Legislative Bill 421, introduced by State Sen. Stanley Clouse of Kearney and State Sen. Eliot Bostar of Lincoln, anticipated generating around $70 million over four years but ultimately did not progress.
Clouse, who has publicly stated he is not an advocate for gambling, suggested that legalization would at least expand the state’s tax base and enable lawmakers to exercise more control over regulation and taxation. The proposal also suggested earmarking 2.5% of revenue for the state’s Compulsive Gambling Fund.
Clouse and other supporters of LB 421 at that time expressed confidence that if the Legislature failed to pass the bill, there would be enough public backing to initiate an independent ballot measure, which legislators would have less authority to regulate.
“We will now defer to the voters’ decision,” Clouse added.
Opponents of legalization continue to express concerns regarding the societal implications of gambling, questioning if the expected fiscal improvements would outweigh the risks involved.