Nebraska Legislators Pass a Legal Casino & Sports Betting Bill

On Thursday, May 20th, legislators in Nebraska approved a gaming expansion bill that includes a measure to make retail sports betting and casino gaming legal activities in the state. The gaming expansion proposal was passed under Legislative Bill 561 by the unicameral legislature in a 44–3 vote.

Another companion appropriations bill, LB 561A, was also okayed by an identical tally by the unicameral legislature. However, like Maryland’s sports betting legislation, LB 561 was passed as an Emergency Bill, meaning that it will take effect right after getting a signature from State Governor Pete Ricketts. To put the emergency passage into perspective, standard bills in the Cornhusker State and many other states for that matter usually take effect after three months of the governor’s signature.

LB 561 was introduced on January 19th by Senator Tom Briese, a republican politician representing Nebraska’s 41st district. After its final reading last Thursday, it was forwarded to Gov Pete Ricketts, who has until June 2nd to give the measure the green light with his signature or veto it.

Will the Governor Give the OK to Gambling Expansion in Nebraska?

There have been questions about whether Gov. Ricketts might veto the retail sports betting legalization measure as he is known to be against gambling expansion in the Cornhusker state. Last August, the governor gave his stance on gambling in a statement saying:

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“Over the years, Nebraska has decided against allowing casino gambling in the Good Life — and for good reason. By keeping Nebraska casino-free, our state has minimized the social harms associated with problem gambling. In fact, research shows that Nebraska ranks as the fourth-least gambling-addicted state in America.”

Despite the governor’s unfriendly stance on gambling matters, however, experts in constitutional affairs expect him to ratify it as legalizing sports betting is exactly what Nebraskans want. The will of the state residents was felt strongly enough in the November 2020 ballot when 64.9% of voters gave the thumbs up to legalizing ‘all games of chance.’ Lawmakers heard the message loud and clear and switched to high gear by tabling a gambling expansion legalization bill as early as January. Now, the ball is in Governor Ricketts’ court.

The Cornhusker State will be levying a 20% tax on all gambling revenue, including sports betting. Allowing casinos (and retail sports betting) at all the six licensed horse-racing tracks in the state per LB 561 could generate tons of revenue each year for the state. A fiscal note presented in the legislature projects that expanded gaming could win over $245 million for the state upon market maturity. A State Racing and Gaming Commission has also been formed to draft more regulations that will guide sports betting in Nebraska.

In-State College Sports Betting is a No in Nebraska

A lot of US states have gone with the model of prohibiting sports betting on local collegiate sports. Still, the fact that Nebraska has followed suit is a big deal because college sports in The Cornhusker State is considered part of its identity as a state.

College football was a polarizing topic in legislative sessions in The Cornhusker State of late, with strong supporters and opposers in equal measure. During a legislative session on May 13th, when the question of in-state college football betting was raised, Sen. Adam Morfeld expressed the absurdity of not allowing in-state college betting, saying:

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“I don’t like this provision. You can drive to Iowa and place a bet and then go watch the game … or you can place a bet on your phone at the game … but you can’t bet on Nebraska [in Nebraska]. It’s illogical, and I don’t care if 13 states are doing it. What we have in this amendment is illogical, nonsensical, and it’s what 13 states already allow. It makes no sense at all. We’re pretending like this isn’t occurring … it’s literally puritanical nonsense.”

The bill was amended either way to forbid betting on local collegiate teams. Some analysts, however, indicate that banning in-state college sports betting was the best recipe to guarantee that the gaming expansion bill gained the necessary two-thirds majority in the legislature.

When Illinois prohibited in-state betting on college football after passing its legal sports betting law in 2019, it was the biggest state by population to do so. The Prairie State then became one of two US states with a presence in the Big Ten– USA’s oldest Division 1 collegiate athletic conference, to bar betting on local college teams.

States like Iowa, on the other hand, let residents within state lines bet on college sports, but a handful of college prop wagers are prohibited. Meanwhile, New Jersey, the king of USA sports betting, is pushing to amend its sports betting laws to welcome in-state collegiate sports betting.