The movement for legalizing online sports betting in Nebraska is transitioning from the legislative chamber to the voters, as casino operators and advocates gear up for a petition campaign aimed at the 2026 general election.

Supporters contend that the state is missing out on crucial tax revenue, as residents travel to neighboring states or resort to unregulated betting sites.

“The core issue is that Nebraska is effectively allowing its tax dollars to flow to Iowa, Kansas, and Colorado, just like what happened with casinos. People are employing VPNs to mask their location, pretending to be in Iowa,” stated Lynne McNally from WarHorse Casinos, which operates venues in Omaha and Lincoln.

The proposed ballot initiative aims to amend the state constitution to permit online betting for Nebraskans. To be successful, organizers need to collect signatures from at least 10% of registered voters. With 1,257,860 voters on the rolls, that equates to 125,786 verified signatures. Proponents claim that signature collection may commence in the upcoming weeks.

This advocacy follows a recent unsuccessful legislative attempt to broaden sports betting. Currently, Nebraska allows betting only at licensed casinos, which face a tax rate of 20%.

Earlier this year, Sen. Eliot Bostar (D-29) proposed LR20CA, a bill aimed at extending the betting framework to online options. He estimated that the state could generate an additional $32 million in tax revenue over a period of two and a half years if the initiative was authorized.

Bostar’s proposal initially gained traction, passing the Senate General Affairs Committee by a 6-2 margin in March and winning one round of floor debate in April with a 27-16 majority. However, the unique unicameral process in Nebraska mandates three successful votes with two-thirds backing before a bill can advance. The initiative stalled following a filibuster that halted further discussion.

This impasse has caused disappointment among industry leaders, who had cautioned lawmakers that neglecting this issue would likely lead to a voter referendum. Missouri also pursued this path in 2024, when major sports teams contributed to a victorious statewide ballot initiative to legalize sports betting.

Some legislators maintain that the authority should remain with the legislature rather than completely entrusting the decision to voters. Throughout the discussions, Bostar argued that senators would have more regulatory influence if they proposed their own legislation. Sen. John Cavanaugh (D-9) expressed his reservations regarding legalization, indicating it caused him “heartburn,” but he also emphasized the value of legislative oversight compared to a voter-led amendment.

Skeptics express concerns about the potential social implications of online gambling, particularly the risk of mobile betting becoming addictive among younger audiences. They also cast doubt on whether predicted revenues would significantly alleviate property tax burdens.