Renewed Effort to Legalize Online Sports Betting

Lawmakers in Nebraska will once again attempt to legalize online sports betting in 2026. Two bills are being carried over from last year as sponsors seek the necessary support in the new session, which began on January 7.

The state has a two-year legislative window. That means any bill that wasn’t rejected in the first session can pass into the next one for consideration without needing to be refiled.

Another Attempt at Senator Clouse’s Proposal

Senator Stanley Clouse‘s Legislative Bill 421 (LB 421) carries over from last year. The bill last received action in March 2025, when the General Affairs Committee held a hearing. However, it failed to advance further.

LB 421 proposes amending the Nebraska Racetrack Gaming Act. It would establish a regulatory framework for online sports betting and tax the activity at a rate of 20%. That rate matches the one applied to retail sportsbooks.

The Nebraska Racing and Gaming Commission would oversee any licensed racetracks that choose to launch an online sportsbook. These facilities can offer in-person wagering since 2021, following a public referendum in November 2020.

LB 421 proposes allocating 90% of online sportsbook revenue to the state’s Property Tax Credit Cash Fund. Another 7% would be split evenly between the Racing and Gaming Commission’s Racing Cash Fund and the Racetrack Gaming Fund. The final 3% would be for the Compulsive Gambling Assistance Fund.

A fiscal note for LB 421 projected that the first year would generate $9.3 million in tax intake. That would rise to $20.4 million by the fourth year. The bill also calls on the gaming commission to examine the regulations in other states to determine which approach might work best in Nebraska.

The bill also proposes ending the current ban on betting on Nebraska college teams when they’re playing in-state.

The Nebraska Cornhuskers are the state’s most prominent sports team, with the football program playing in the Big Ten Conference.

The Cornhuskers’ football team has sold out every home game at Memorial Stadium since November 3, 1962. That’s the longest consecutive streak in NCAA history for any sport, underscoring the political sensitivity surrounding betting on athletes.

LR 20CA’s Progress and Ballot Strategy

Nebraskans are also watching Senator Eliot Bostar‘s Legislative Resolution 20CA (LR 20CA) as it enters the 2026 session. It proposes launching online sportsbooks in partnership with racetracks. The ultimate goal is to secure a place on the November 2026 ballot, allowing voters to decide whether they want online sportsbooks.

The bill projects annual tax revenue to reach $32 million when the market matures. A significant portion of that revenue would provide tax relief.

During the General Affairs Committee meeting in March, members voted 6-2 in favor of advancing the resolution. Senator Clouse, who introduced LB 421, remarked that his fellow committee members need to be “proactive” and not “keep kicking the can down the road.”

Senator Rick Holdcroft voted against it. He cited concerns about the rise in addiction levels since the November 2020 ballot vote to expand gambling in the state.

Meanwhile, Senator Jared Storm‘s gripe was more with the approach the bill’s sponsors are taking. He said that they should get the necessary voter signatures to get the proposal on the ballot rather than “have the legislature do it for them.”

LR 20CA passed the first of three Senate floor votes, 27-16, in April. Still, Bostar withdrew the bill after determining it lacked the 33 votes needed to overcome a filibuster.

Two Viable Routes to Legalization

Proponents of legalized sports betting will closely watch to see if LB 421 or LR 20CA can garner the necessary support in 2026 to cross the finish line.

Another route involves gathering the required number of voter signatures through a petition. Missouri took a similar approach in 2024. The state’s major sports teams formed a group alongside key stakeholders to get the signatures.

Amendment 2 narrowly won approval by just a few thousand votes, and online sportsbooks began launching in Missouri last month.

A petition would need to gather signatures from at least 10% of the registered voters in Nebraska to appear on a ballot. There’s also a requirement to get signatures from at least 5% of registered voters in 38 of the state’s 93 counties.

As lawmakers return for the 2026 session, Nebraska faces a familiar crossroads: break the legislative impasse or allow voters to decide the fate of online sports betting at the ballot box.