Facing tightening budget forecasts and a projected revenue shortfall, Nebraska lawmakers are moving to expand legal online sports betting as the 2026 legislative session gets underway. Legislators are set to vote on two carryover measures, LB 421 and LR 20CA, that would allow wagering beyond licensed racetracks and tax the activity at a base rate of 20%, with 90% of proceeds earmarked for the state’s Property Tax Credit Cash Fund.
The former bill is being put forward by Sen. Stanley Clouse, which would permit licensed gaming operators to provide sports betting through approved online platforms. The Nebraska Racing and Gaming Commission would regulate all online betting, according to the proposed law.
Meanwhile, legislative bill LR 20CA will ask citizens to vote in a referendum on whether they would like online betting to become a legal right when voters head to the polls in November. The bill had faced an uphill battle in the senate, with a challenging 30 votes required to pass during final debate and a minimum of 33 votes for a prolonged filibuster.
State Sen. Jason Prokop, who made LR 20CA his legislative priority last session, called it a “reasonable measure”. He told the Daily Nebraskan: “Put it in place and allow for a regulated market, which also helps address some of the challenges that people talked about over the course of the debate that I am sympathetic to around gambling addiction.”
Supporters estimate the bills could generate about $32 million in annual tax revenue for the state, revenue Nebraska is currently missing out on because online mobile sports betting remains illegal, a figure cited by state lawmakers and reported by Nebraska Public Media.
Nebraska’s finances are under near-term budget pressure, even after lawmakers closed an earlier gap in the biennial budget. Nebraska’s Economic Forecasting Advisory Board cut the state revenue forecast by $120 million for the 2025–26 financial year and $247 million for the 2026–27 financial year, tightening the outlook heading into the 2026 session.
Additional funding raised through legalised gambling is likely to provide a huge boost to the state as it grapples with disappointing financial forecasts over the coming years.
Gambling addiction fears slowed progress
Despite the possible passing of legislation this year, it’s been a rocky journey for the future legalisation of online betting in Nebraska. The bills faced major pushback from some experienced political operators when they were first introduced on the floor of the state capitol building.
State Sen. Brad von Gillern of Elkhorn was a vocal opponent. He urged his colleagues to think of the ramifications for targeted groups, like young men. He said last year: “The motivation is based on the clear data that shows that this is a highly addictive form of gambling and it is particularly predatory amongst young men.
“People between the ages of 18 and 30 are typically targeted by online sports gambling, and there’s lots of data that has proven that it has led to increased financial problems and bankruptcy, particularly amongst young men.”
The advent of match-fixing in college sports is also causing concern among lawmakers. Senator Margo Juarez of Omaha, believes the ease of access for bettors, including athletes, will only make the issues worse.
She told the Daily Nebraskan last year: “I think that I’m really concerned about the ease of gambling at your fingertips. That concept I’m not comfortable with. I live by the new casino in Omaha. I’d feel a lot more comfortable thinking that people have to get in their car, drive to the casino, and walk in before they put their dollar in a machine.”
History of sports betting in Nebraska
Nebraska’s path toward legal online sports betting is thanks to voter-driven sentiment. In 2020, residents narrowly approved a package of ballot initiatives allowing casino gambling at the state’s licensed horse racetracks, which form the building blocks of legislation put forward today. Sports wagering followed in 2021, but only on a retail basis at those racetracks, under the oversight of the Nebraska Racing and Gaming Commission.
Since then, lawmakers have repeatedly debated whether to extend betting beyond brick-and-mortar locations. Supporters argue that online wagering already occurs through unregulated offshore platforms, leaving the state without consumer protections or tax revenue. Opponents counter that expanding access risks worsening gambling harm and integrity concerns, particularly in college sports.
If approved this session, and ultimately by voters, LB 421 and LR 20CA would mark the most significant expansion of Nebraska’s gambling framework since the 2020 referendum, shifting the state from a strictly location-based model toward a fully regulated online market for the first time.
