Supporters push hard to legalize online sports betting in Nebraska. A fresh study shows it could bring in nearly $87 million in state taxes over five years. This comes as the state battles budget shortfalls and high property taxes.
Tax Relief Nebraska kicked off petitions in February 2026. They aim to land online sports betting on the November ballot. The group already gathers signatures ahead of schedule. Sponsors Kyle Adema, Jordan McGrain, and Tim Moran filed two measures. One changes the constitution. The other sets rules for operators.
Big names back the effort. DraftKings and FanDuel each gave $1.1 million. BetMGM and Fanatics joined too. Voters need to approve by simple majority. Signatures must hit 7% of registered voters from 38 counties by July.
Nebraska voters greenlit casino gambling in 2020. Retail sportsbooks opened at racetracks in 2021. Three casinos run now. More sites like Ogallala eye approval.
Petition backer Jordan McGrain stays upbeat. He says the drive moves quicker than planned.
Study Spells Out Revenue Gains
Eilers & Krejcik Gaming ran the numbers for Tax Relief Nebraska. Their March 2026 report projects strong growth. Online sports betting could yield $86.6 million in gross gaming revenue over five years. At an 18% state tax rate, that nets just under $87 million for Nebraska.
Year one starts small. Handle grows as users sign up. Sports fans bet on NFL, college games, and more via apps.
Retail betting already shines. Nebraska racetracks pulled in record sports wagering last fall. November 2025 hit $1.5 million in hold alone. Full year gaming topped $236 million through then.
Lawmakers tried before. Senators Stanley Clouse and Eliot Bostar pushed bills in 2026. LB 421 eyed $70 million over four years. It stalled.
Neighbors Drain Nebraska Cash
Folks cross borders to bet online. Five of six neighbors allow it.
- Iowa leads with apps since 2019.
- Kansas joined in 2022.
- Illinois thrives nearby.
- Others like Colorado boom too.
Only South Dakota holds back. Nebraska loses millions yearly to rivals. McGrain calls it a cash grab gone wrong.
This setup hurts local wallets. Bettors from Omaha drive to Iowa spots. Revenue slips away.
Supporters say legalization flips the script. Keep dollars home. Boost jobs at operators.
Budget Pinch Fuels the Fight
Nebraska stares down deficits. Tax receipts fell short in March 2026. State now faces a $72 million hole. Lawmakers plugged a $646 million gap earlier. But structural woes linger.
Income taxes tanked 56%. Sales beat forecasts though. Governor Jim Pillen eyes cuts. Property taxes eat family budgets.
Online betting offers help. Revenue could steady funds. McGrain notes: “We have to find the revenue somewhere.”
Seventy percent mirrors casino rules. That sends $61 million to property tax credits. Credits now gulp 20% of spending.
| Revenue Source | 5-Year Projection | Share to Credits |
|---|---|---|
| Total Tax Revenue | $87 million | 70% ($61 million) |
| Retail Sports (Current) | Growing annually | N/A |
| Online Handle (Est.) | Builds yearly | Stabilizes budget |
Foes Say Gains Fall Short
Not everyone cheers. Senator Brad von Gillern chairs the Revenue Committee. He dubs the haul tiny. It equals just 1% of yearly property credits.
Von Gillern worries about social costs. More gambling means more issues. He prefers levy cuts over new bets.
Clouse agrees impact stays small. Still, he backs voter choice.
Credits program runs big. Hundreds of millions flow yearly. $560 million sat ready in 2024. New cash adds drops.
If voters pass it, leaders pledge smooth rollout.
Online sports betting could ease Nebraska’s money crunch. Nearly $87 million in taxes promises relief for property bills and budgets. Fans gain easy apps. Yet small scale and risks spark debate.
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