Nebraska’s Special Session Tackles Property Tax and Online Sports Betting

Nebraska Governor Jim Pillen has called for a special legislative session starting July 25, focusing on property tax reform and potentially addressing online sports betting legislation. This development comes after earlier reports indicated that online sports betting in Nebraska might not be viable until at least 2026.

Previously against online sports betting, Governor Pillen now views it as a potential revenue source for property tax reduction. He aims to cut property taxes by 50%, with online sports betting projected to contribute around $30 million annually, according to KETV.

Push for Legislative Approval

Nebraska gaming officials and operators are lobbying for the inclusion of online sports betting on the November ballot. Ho-Chunk Inc., the economic development corporation of the Winnebago Tribe of Nebraska, is leading this effort. Ho-Chunk operates WarHorse Gaming and has temporary casinos in Omaha, Lincoln, and South Sioux City. They seek legislative approval for a bill that would place the online sports betting referendum on the ballot.

Ho-Chunk CEO Lance Morgan emphasized the benefits: “It’s additive. It’s not a tax shift. And so we think that’s a pretty viable option. And we’ve been proposing that to be part of this special session.”

State Senator Terrell McKinney (D-North Omaha) strongly supports online sports betting, criticizing current opposition. “[Online sports betting tax] is revenue that we’re missing out on because we want to be the ‘nanny state,’” he told KETV.

Lynne McNally, Director of Government Relations at WarHorse Gaming, highlighted the advantages: “Considering the other options that have been floated around in the news, I certainly think that this is a much more palatable way to raise money.”

Reports indicate that up to 90% of sports betting revenue comes from online platforms. For example, Iowa’s sports betting revenue is predominantly derived from online sources. The Iowa Racing and Gaming Commission reported that 92% of its $2.6 billion sports betting revenue came from online betting over the past year.

Nebraska has reported only $1.7 million in sports betting revenue from its four retail sportsbooks since January, amounting to approximately $342,000 in tax revenue. Should Nebraska’s online sports betting market develop similarly to Iowa’s, projections suggest the state could generate approximately $481 million in revenue from online sports betting, with $337 million potentially allocated to property tax relief. However, Nebraska’s market is less developed than Iowa’s, and many Nebraskans currently travel to Iowa to place online bets.

To place the online sports betting measure on the November ballot, Nebraska’s legislature must approve it with a 60% supermajority vote. If successful, a simple majority of voters would be needed to pass the amendment. Polling data from Ho-Chunk indicates that 65% of Nebraskans support online sports betting, although earlier data from major U.S. sportsbooks showed 57% support. If the legislature does not advance the measure, a citizen petition remains a viable alternative.

The outcome of this legislative session could mirror the 2020 referendum, which legalized casino gaming and retail sports betting at Nebraska’s horse racing tracks with 65% voter approval.