Nebraska committee sends digital betting proposal to senate floor

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A pivotal constitutional amendment poised to shape the future of digital gaming in Nebraska is advancing to the Senate floor. If approved, this proposed referendum will be placed on the November 2026 ballot, marking a significant step towards legalizing digital sports betting in the state.

Recent legislative developments have positioned Nebraska as the frontrunner for digital sports betting legalization in the United States this year. Initial discussions around the potential for digital wagering seemed subdued until the Senate committee voted 6-2 on March 17 to elevate the proposed constitutional amendment to the Senate floor.

As the only state in the U.S. with a unicameral legislature, Nebraska’s process for passing legislation is unique. The Senate must achieve a two-thirds majority across three separate votes for the proposal, designated as LR 20CA, to advance. Notably, this constitutional amendment does not include a regulatory framework, and if successfully passed at the polls, Nebraska could launch its digital sports betting market as early as 2027.

This legislative effort persevered amid significant opposition encountered during the hearing on March 10. NE is now at the forefront of states seeking to expand digital wagering, with only Hawaii presenting a similar initiative; its HB 1308 bill has already cleared the House and a Senate committee on March 13.

Proposed Platforms for Digital Betting

Nebraska, bordered by states permitting online sports betting, faces a pressing issue of revenue loss, with many residents crossing into Iowa to place wagers. According to Lindsay Slader, Senior Vice President of Compliance at GeoComply, 3.9 million geolocation checks occurred in Nebraska during the NFL season alone.

Moreover, GeoComply’s data reveals approximately 42,000 border crossings into Iowa, with about 90% of those identified as Nebraskans positioning themselves in areas specifically to access mobile betting. A telling heat map illustrates significant clusters of Nebraska bettors gathered in strategic locations just outside Iowa’s borders.

To read more about this demand for legal sports betting in Nebraska and view the heat map, refer to the report shared by GeoComply: @GeoComply.

It is important to note that currently, Nebraska law prohibits betting on its college teams during home games. Legislation to modify this restriction is anticipated, should the digital wagering bill progress further.

The outlined constitutional amendment stipulates that digital platforms will be tethered to “licensed racetrack enclosures,” allowing collaborations with established online sports betting companies such as BetMGM, Caesars Sportsbook, DraftKings, ESPN Bet, and FanDuel. In total, six licenses will be made available for prospective operators.

Key Considerations and Legislative Landscape

Should the constitutional amendment secure passage in the Senate, voters will face a straightforward decision: whether to support or oppose a constitutional amendment permitting authorized gaming operators to conduct sports wagering within licensed racetrack enclosures via mobile or electronic platforms.

The future of LR 20CA on the Senate floor remains uncertain. As reported by the Kearney Hub, some lawmakers view the measure as a tactical maneuver; concerns exist that, if this amendment fails, industry proponents might initiate a more expansive ballot initiative.

Senator John Cavanaugh voiced his reservations about mobile sports betting, remarking, “I’ve got a lot of heartburn about mobile sports betting. But if we don’t do this, they will put it on the ballot, and it will be more expansive than this.”

In comparison, Missouri residents successfully passed a digital betting initiative in November, backed by industry support and professional sports teams, with mobile wagering set to commence by December 1.

The citizens of Nebraska previously legalized retail sports betting through a referendum in November 2020, with the inaugural in-person bets placed at WarHorse Casino Lincoln in June 2023. With the state legislature scheduled to adjourn on June 9, it is crucial to note that bills can carry over to the 2026 session, possibly impacting the timeline for further legislative action.

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