An online sports betting bill filed in the state of Nebraska has failed to get the support it needed, and it is done for the year. LR20CA was introduced just last January by Senator Eliot Bostar and it gained approval in both the General Affairs Committee and the unicameral legislature, but the measure died down when a majority of legislators voiced their opposition to the sports betting bill.

A legislative push to legalize online sports betting in Nebraska has come to a halt. Senator Eliot Bostar on Wednesday withdrew his proposal, LR20CA, which sought to authorize a constitutional amendment allowing voters to decide the fate of online sports betting during the 2026 general election. Despite early bipartisan support and initial success, the measure ultimately failed to sustain momentum, ending this year's efforts to expand Nebraska's sports betting market.

Early progress, but mounting opposition

Introduced in January, LR20CA gained early traction, passing through the General Affairs Committee and later securing a 27 to 16 approval in its first full-chamber floor vote earlier this month. However, the bill faced significant resistance during subsequent debates, with a majority of legislators voicing their opposition.

Facing diminishing support, Bostar chose to pull the measure from consideration. It became clear that we would not have enough votes to proceed, Bostar said, signaling a pause rather than a complete abandonment of the effort.

High-profile opponents included former Nebraska coach and political figure Tom Osborne and former Nebraska Governor Kay Orr. Their concerns, shared by other lawmakers, centered on the potential social costs of expanding gambling access, such as increased rates of problem gambling, bankruptcy, and drug abuse.

Supporters cite economic benefits

While opposition mounted over social concerns, supporters of LR20CA highlighted the financial advantages of regulating online sports betting. Bostar emphasized that Nebraska is currently losing an estimated $32 million annually in potential tax revenue to neighboring states with regulated markets and offshore operators.

Proponents argued that a regulated framework would not only capture lost revenue but also help minimize the risks associated with illegal gambling markets. They believed that an organized system could offer safer, more transparent betting opportunities for Nebraskans while providing significant funding for public projects.

What LR20CA proposed

Bostar's legislative framework proposed the operation of up to six online platforms, each required to partner with licensed race tracks across Nebraska. Revenue generated from sports wagering would have been allocated to public education initiatives and the Nebraska Environmental Trust, an organization dedicated to conservation efforts.

Major industry players, including Caesars, BetMGM, FanDuel, DraftKings, and Fanatics, publicly backed LR20CA, hoping to establish a foothold in the Nebraska market. Although the bill's failure delays their plans, these operators may yet find another path forward through a public-driven ballot initiative.

Public initiative and future legislative sessions

Despite the legislative setback, proponents of online sports betting in Nebraska remain hopeful. The state's legislative session continues until June 9, and bills may carry over into the 2026 session. Additionally, a public initiative effort remains an option.

To place online sports betting legalization on the ballot independently, organizers would need to collect signatures from 10% of Nebraska voters. Should such an initiative succeed, residents could still have a direct say on the matter in the 2026 election.

Nebraska took its first steps into the sports betting industry in 2023 by legalizing retail wagering at licensed casinos. The process followed years of regulatory development under former Governor Pete Ricketts. However, current laws limit sports betting to in-person transactions and prohibit wagers on in-state collegiate events held within Nebraska.

Efforts to modify these restrictions are ongoing. Earlier this year, Senator Tom Brandt introduced Legislative Bill 63 (LB 63), aiming to allow live and pre-match betting on local college sporting events. If passed, this would enable fans to wager on high-profile games involving the University of Nebraska, Creighton University, and the University of Nebraska-Omaha.